I was invited to speak to the BizEnergize lunch on December 15, 2016 (http://bizenergize.com/). I learned a great deal from the audience. They were a great group of people and provided a lot of interaction. I spoke about building companies that last and I used the principals of The 3 Laws of Empowerment (www.rshawnmcbridelive.com/3laws), to underline my message, and to provide a strategic framework for looking at how companies can do more and build themselves to be bigger. One common theme kept coming up, which was how to manage business partnerships, how to really make them work, and how to make them better.
I believe that business partnerships are for a season and that we should be realistic – that not every business partnership is going to last forever. It’s misguided energy to try to build partnerships to be permanent. What’s better is to view partnerships as being for a period of time, to maximize the economic value, and to make sure that each of the contributors gets paid for their economic worth for their economic contributions.
There was also discussion about transition planning as people age, and how do we have some partners stay in the business and have others leave the business. We discussed the systems that were possible to make that happen. This included using generational strategies as younger people were coming up into taking the place of senior and professional services businesses. We also talked about the realities of having adult children join the business, and how this might have an impact on the other business partners and the evolution of the business.
It was a great audience, and I always enjoy getting the chance to talk about business and its realities, and putting plans together that are realistic.
What’s been your experience with planning for changing business partners? Have you had generational issues crop up in your partnership agreements? How are you working through the process of having older people leave the business and having younger people join the business? Join us in the comments below and let us know what you have experienced.
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This posting is intended to be a tool to familiarize readers with some of the issues discussed herein. This is not meant to be a comprehensive discussion and additional details should be discussed with your attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances. Each case is unique. Past results do not guarantee future outcomes. This article should not be treated as legal advice to any person or entity.
About the Author
Shawn McBride is the Chief Innovation Officer at McBride For Business, LLC. His signature keynote, The 3 Laws of Empowerment (www.rshawnmcbridelive.com/3laws), gives audiences an entertaining look at how they can prepare, plan and protect themselves. You can reach R. Shawn McBride at firstname.lastname@example.org or (214) 418-0258.
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Posted In: Business