To partner or not to partner

Who out there has had much experience in business partnerships? Do you find that one person always ends up contributing more time and effort than the other partner? What sort of performance clauses would be reasonable in a contract?

Thanks

Allan

Do yourself a favour and GET IT DOWN IN WRITING.

Almost every single co-operation I've been involved with over the past six years has gone sour in one way or another.

I did a website for a guy who sells dungeon equipment, in return, he was to make me a bed. Finally, two years later, I got my bed.

My first paying website, I let the guy pay in installments. A year later and one bounced cheque, I finally had to strong arm him into giving me my money.

A friend needed web work done, I needed a logo, we agreed on a value of the logo and I was to give her an equal amount in web design work. We did it once, it was fine. We did it a second time for a second logo, and then, then six months later, our friendship started to sour. She's not speaking to me, so I'm stuck with this logo on my site that isn't completely paid for. What do I do?

All three of these examples happen to be payment sort of issues. But they illustrate how things change over time or people don't do what they say they were going to. So protect yourself.

I think in the end you're far better to pay for services than to try and trade them because then you usually have contracts and bills.

Cheers
Dzinerbear

"Do you find that one person always ends up contributing more time and effort than the other partner?"

Sometimes, not always. I started a partnership a year ago here in Oz, everything in writing etc. I did my part and the other two dragged their feet, so after a while we re-nogotiated our terms and now I'm very happy doing most of the work.

IMO working relationships change over time and a partnership agreement is just an outline of everyones basic understanding and terms. Business relationships, and duties, evolve so don't hold everyone too tightly to what they agree to.. give some leeway but don't let yourself be taken advantage of either.

"What sort of performance clauses would be reasonable in a contract?"

Here's a free partnership agreement that has all the basic bases covered

I would also work in a non-compete clause. If things go sour while you're in the partnership you don't want them to have the ability to take everything you've done and start their own side venture while in contract with you. :high:

A long time ago I got a good piece of advice about partnerships from an older gay man who was involved in the porn industry in the 1970s (and got screwed).

He said that along with figuring out how to start a partnership, you also need to figure out how to END the partnership. In other words, imagine what disasters might occur in the future and plan accordingly.

Thanks for the great advice guys, I really appreciate your input!

Cheers,

Allan

Greetings:

Quote:

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Originally posted by LavenderLounge
He said that along with figuring out how to start a partnership, you also need to figure out how to END the partnership. In other words, imagine what disasters might occur in the future and plan accordingly.

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VERY VERY VERY good advice that I don't see people give/take often enough! Most partnership agreements that I've read go on and on providing details of a working relationship, but don't touch at ALL, or only very briefly, on what it will look like if that relationship sours or ends.

This is what business people call a "premortem", and it definitely should be worked into any agreement.

:thumbsup: