things they don't tell you in business school...

S

simonov jr

New member
I've recently been the "beneficiary" of some hard business lessons. Thought I'd throw a couple out and see if there are any others you can add...

You know you have a problem with your business partner when he:

1. Says repeatedly, "I'm NOT going to do anything to hurt you"...
2. Says, "You need to spend more time making money and less time THINKING about things down the road"
3. Says, "You let ME worry about that"...
4. Introduces his drunk rug-merchant drinking buddy to you as "a guy who can really help us"...
5. Accuses you of being "greedy" for not approving of said buddy Okdot's appointment as the exclusive rep for a big territory...

Anything to add?

In short, my conclusion is that business partners are HIGHLY over-rated...If at all possible, go it alone!:mad:
 
M

Monkeyleg

New member
The whole impetus for my going into business was to have the freedom to make my own decisions, good or bad. I've seen a lot of businesses go south because of "partnerships."

A good friend just opened a gun shop with a friend of his. I'm waiting for the fur to start flying.

Sounds like you're having a bad week, Simonov. ;)
 
O

Oatka

New member
NEVER take on a partner who is an accountant and let him handle the books. (This from an accountant.)
 
S

Scott Evans

Staff Alumnus
1. Everything is in writing or it’s over before it starts. No writen contract then you will fail.
2. Never enter into a 50-50 partnership. In tough times your business can be completely stalled as two equal partners who disagree do nothing but argue. If things must be equal then a 1/3, 1/3, 1/3 arrangement is better then 50-50 as two can over ride the third. I am the majority stockholder in my business. As such what I say goes … This is the only way I will ever have partners. (I once was stuck by a 50-50 best friend partner…. NEVER again!)
3. Do not mix personal money with business money.
4. Strict accountability with all money and business assets and be sure to employ outside oversight from a reputable CPA.


If your in a 50-50 partnership and you are loosing trust or are becoming frustrated then GET OUT NOW before the relationship is strained to the point that you can no longer negotiate a deal. If it is a good strong business sell out (If your making money he will pay for your half). If it has good potential but is not making it because of your partner then buy him out. Otherwise you’re in a canoe without a paddle headed for the falls.
 
1

14inches

New member
Never go into partnership with someone until you have slept in the same pup tent and eaten from the same mess kit.
 
4

4V50 Gary

Staff
My father's taught me...

they don't teach you how to become rich at business school.

He musta known something because he stopped working at age 32. I wish I had more of his genes and brains.

BTW, he was very smart. His guns worked perfectly and his ammo was always reliable. He allowed my brother and myself to reload and after every trip from the range, he'd smile and say to us: "Sons, clean the guns."
 
S

Scott Evans

Staff Alumnus
Some more:

Make sure you have control.

Be sure you have your own lawyer (he works only for your interest in this matter) while drafting your agreement… not one guy to represent all of you.

Never allow for ownership of stock or other interest in the business to guarantee employment for your partners. You MUST be able to fire and hire who ever you deem best for the business.

Arrange ahead of time (before you start the business) “cause” for removal of your partners. Be sure that this gives you at least reasonable control and full authority to remove non-performers or those who do not play well for the home team.

and on and on ...
 
J

Jeff Thomas

New member
Anyone who tells me how honest they are goes on my 'watch' list. If they tell me how honest they are 3 times or more, then I know they're a snake. This is not a joke. Honest people don't waste time telling you how honest they are.

Anyone who always has the answer to every question is not to be trusted. It is music to my ears when someone says 'I don't know, but I'll find out'.

Beware the bozo who tells you not to worry about that onerous little provision in the contract ... after all 'we never enforce that'. If it is not important, then take it out of the contract. It is at that point that you'll find out they seem to have an affection for that little, unimportant contract provision.

Get it in writing. Read everything before you sign it, and keep a copy of everything you sign. Everything. With today's marvelous photocopying equipment, you can do wondrous things with someone else's signature. I've had a 'copy' of a contract shown to me, with my signature on it, and ... gee, what do you know - it didn't match my copy. The salesman copied it in such a way as to change the body of the document.

And, last if not least ... hire smart people to advise you in important areas of your business. A good attorney, CPA, CFO can save you a ton of aggravation and money. Or, you can call them in later, as you're filing for bankruptcy ... as I see some clients doing from time to time.

Regards from AZ
 
L

labgrade

Member In Memoriam
All good advice ... Jeff's "I don't know .... " theme is music to mine own ears in any venue. Honest folk do tell when they are ignorant (as opposed to stupid) re topics at hand. "Know-it-alls" bluster, honest folk tell you they don't know, but find out - & honestly at that.

If a business "partner" foretells "I'm only chippin', man." = get out! Goes for anything (women [sorry sorta, I'm a guy], drugs, alcohol, gambling, whatever .... ) - either buy 'im out, let 'im buy you out - just get out .... make money leaving if you can, but go. Better to cut loses soonest.

Amputations are better than dying of gangrene ....

Relations/friends rarely mix in business. You're not there to have a good time but to make money. Choose one - you very seldom get both.

Oh yeah, I prefer the .308 Win in Rem's M7 platform w/2X8 optics as my fave all 'round rifle - gun-related, ya know .... ;)
 
You must log in or register to reply here.
Top