06/04/2024
A couple of things you need to note down if you are planning to do partnership.
1. If both partners know the exact same stuff. For example, Both are PPC Experts. There is no complementary value you guys are bringing on the table. Eventually, one of you will be unnecessary.
2. You partner need to have either money, knowledge or time which you do not have. If you both do partnership for service agency (for which major investment is time) and your partner does moonlighting, it will suck. Similarly, if your partner has things (from time, money and knowledge) which you have already then again, it won't be a long term thing.
3. Write down your expectations from partner in an agreement. We usually do not do that. We make partnership and have expectations from each other which we do not write down. So, you onboard an investor and committed amount is $50k and after $7k spend, they say, oops man, sorry I don't have anymore money. Or you partner up in service agency with someone and after some time they say, I started business B and after sometime business C as well. And now, they are only giving 2 hours instead of 6-8 hours. Make sure, you write down the expectations. Someone portrays himself to be an expert in something and based upon that you give him equity and then you get to know he sucks in that expertise, but you had not mentioned the expectation in contract and now he is a parasite to your agency.
4. Make sure your partner is aligned with you on values and vision. If he is happy with $5k revenue and you have expectations to become a Million dollar business, you guys will have different appetite level. It will make decisions hard. Different values mean different ways to achieve same goal and one's way may not be acceptable to other. So, chances of dispute.
5. A person who is highly capable and committed is A player. A person who is either commited or capable and does not posses the other attribute is B player. A person who is neither committed to work and nor capable is C player. B players who are super committed and honest but not capable have high probability that you will fall to give them equity. That is mistake of an inexperienced person, avoid that.
6. Finally, learn to have experience in business before playing partnership partnership. Those who have 5+ years of experience in business are going to have high chance to select right partner as compared to those newcomers who have just heard fineliner and bottomliner and looking for partnership at very beginning of their career.
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