how to find a business partner

Mark, if I had a nickel for every time that I have said that I'd never again take on a partner, I'd have enough for an Enzo. That is, the best advice about taking on a bidness partner is -- don't. I'll leave it to some others on this board to fill in the blanks as why you want to go solo for as long as you can.

That said, I'm currently invovled in two, uh, joint ventures as we speak. So, I'm already lying to you.

Here's a short list of what makes a partnership work.

1. Opposites attrack. One combo that can work is a money guy and an idea guy. (Note there are a lot more idea guys out there than there are money guys stupid enough to risk their money on bright ideas.) Another good combo is a sales guy and a geek and a money guy. Point is that everybody has to bring something different to the table.

2. An "Eat What You Kill" partnership agreement. I can't tell you how many times I have seen this story play out. Group walks in to my office all hot to trot. When asked how they plan on splitting the pie, they give me a "Three Musketeers" answer, i.e., "One for all, and All for one." My canned response is that they are Communists. It was Karl Marx who said, "From each according to his ability. To each according to his need." Just like this crap didn't work in Mother Russia, it ain't gonna fly here.

3. There can be only one "Big Man." At the end of the day, someone will have to make the call as to whether you zig or zag. Usually, the Big Man is the one with the money.

Hope this helps, and let us know how it goes.

Dr "I don't need no stinkin partner" Tax

 

Mark...Drop me an email at [email protected] with your phone number. I'd like to talk to you about your venture. I don't throw money at you, just good advice from the Type-A that you seek.

Pete

 

Dr Tax is right on.
Avoid partners at all costs. Sometimes you might choose one cause the oppertunity is too great and you dont have the resources, connections to go it alone. Make an exit plan, kinda like a pre-nup.
Decide before you even get really going how to fairly distribute the company if one decides to bail out or you sell the company.
When you start thinking about this it will also force you to solidify all the details that come between A and Z.

 

I just need to chime in because I've had a very different experience regarding the so-called "three musketeers" approach.

I started my first company and one of my current companies with my two closest friends from high school, and we have (and still have) adopted that approach. Doesn't matter how much or what each of us puts is, everything is a three-way split. And we've had nothing but success with it. We've all made a ton of money, we're all content with the relationship, and we wouldn't change it for the world. Sure, there have been times that one has put in more effort here or one has gotten a bigger sale there, but in the end it all works out.

Furthermore, the nature of our relationship wouldn't have it any other way -- we work so well together because we respect that we each have different talents and that sometimes one of us has to pull more weight than the other. But if the pie was cut unevenly, the lesser-eaters would certainly get bitter over time and then things would just spoil. (sorry for the bad pun).

I know this is rare, because many more times than not the "friendship first" approach fails miserably, but in at least one case it's been a rousing success.

Sorry to hijack the thread.

 

I'll chime in, add to the "don't do it" side of things.

Ed

 

This is THE BEST advice you will ever get, PERIOD !! Take it from someone who has taken it up the tailpipe to the tune of over $160,000 in the last 18 months as a result of a "partnership". Not a TON of money, but it's kept me from buying Ferrari #2 and buying a larger house. PM to discuss.

 

A BIG NO NO......DO NOT

ANYWAY, EVERYONE HAS A SILENT PARTNER..HIS NAME IS " MR I.R.S.

 

Partnerships can be difficult....and ultimately expensive. Believe me, I know. There's an old expression, "Partnerships, like love affairs, should have only beginnings". How true.
I have a lot of experience with startups and new ventures (much more than with Ferraris). If you'd like to chat, email me your contact info.

Thanks.