Comments on: Key questions to ask regarding partnerships

By: mhdoc

mhdoc — Wed, 31 Dec 1969 19:00:00 +0000

There are so many things to try and pin down I am no longer convinced it is possible to write an agreement that will hold up over time. For example, item 4 about holding their weight. I can see a graphic designer and web programmer having some serious disagreement over the value of their respective contributions. (I've just been down that road :(

Question: Were any famous partnerships (HP for example) based on a written agreement?

By: bwarrene

bwarrene — Wed, 31 Dec 1969 19:00:00 +0000

Before any partnership even gets close to paper - there has to be a clear vetted out business plan with logical steps to achieving 1) the pipe dream goal, 2) a more realistic goal, 3) a break even strategy and 4) a failure strategy.

By: realestate

realestate — Wed, 31 Dec 1969 19:00:00 +0000

What if one of parties commit a crime (s:remain independednt from the beginning, don’t get affected, does this fit?)

By: RSymonds

RSymonds — Wed, 31 Dec 1969 19:00:00 +0000

Very good suggestions bwarrene. I stepped into 2 partnerships without well defined goals, plans or exit strategies (failure or otherwise). You think I would’ve learned after the first time! I definitely learned after the 2nd time though :)

By: thebasti

thebasti — Wed, 31 Dec 1969 19:00:00 +0000

Very good tips, especially since I am on my way to form a business with a partner. I am also quite concerned about item 4, as mhdoc pointed out “weight” is differently defined between programmers and designers. Does anyone have any good/bad experience with partnerships between programmers and designers?

By: petertdavis

petertdavis — Wed, 31 Dec 1969 19:00:00 +0000

Hi Andrew,
One point that I think is very important to partnerships, that I think a lot of people overlook is salaries. Each partner who is actively working for the company should be paid a salary based upon industry norms for the type of work they're doing. This will go a long way in preventing any resentment created by the partner not pulling his weight problem you mentioned.

By: webmonster

webmonster — Wed, 31 Dec 1969 19:00:00 +0000

The most important part of forming a partnership is doing it with somebody you trust and have a good working relationship with. If you go into a partnership with somebody just because they have a skill set that you don’t and together you can conquer the world, it probably will end up falling apart. Just be sure you know, trust and get along with anyone you are intending to partner with.

By: Dr Livingston

Dr Livingston — Wed, 31 Dec 1969 19:00:00 +0000

depends really...

* are they joining the business at the very start? if so then equal investment and equal business value share, equal profits

* if they joining at a later date, offer them a percentage based on amount they invest though you keep a controlling 51% of business. ie they invest 75,000 so you give them 22.5% for example, greater if profits are less than expected in the previous tax year

as for opting out, they need to invest and stay with the business at least medium term so have a clause to stay for a minimum 4 years in my view? hammer them silly if they want out before this :D

as always, another interesting topic btw ;)

By: hdsol

hdsol — Wed, 31 Dec 1969 19:00:00 +0000

I have a great partnership. I do the programing side and my partner does the graphics side. Getting into a partnership is a lot like a marrige. Both parties have to share the vision for it to work. Make sure all the details are worked out in advance of the partnership. One of the areas that we discussed at lenght was the weight that each of us carries on a job. The way we choose to look at it is that from a programers perspective we share the bull work of the site but from the designer and the clients perspective, if it doesn’t look good most clients are not pleased. We have won jobs based on that theory. Once i get my foot in the door then i can explain and sell advanced features to the client. I think that my partnership works that same way that my marrage does. Through hard work, commitment to common goals and a agreed upon way to achieve them, I have two of the best arrangements going.

By: Cartman

Cartman — Wed, 31 Dec 1969 19:00:00 +0000

webmonster makes a great point. I went in with this notion, and my partnership fell apart rather quickly. Now I’m stuck holding the burden alone, but on the flip side I get 100% of the profits as well.