When You Go Into Business with Other Humans | Glitch #25

When you Go into business with other humans, handshakes and napkins may not cut it in the long run. Often, business partners may think everything will be hugs and hearts.

❓Do you have partners? Let's face it, we don't go into business with someone we don't like. It's like marrying someone you think you'll divorce.

People don't prepare for the worst because a demise or debacle isn't typically a planned event.

When disagreements occur and opinions dominate, an impasse could create insurmountable hurdles.

It's emotionally draining and expensive.

🎯 Goal: Draft and/or review a written agreement with business partners. When you have any kind of arrangement and relationship with others where money is involved, every business needs a written document that explains each partner’s rights and responsibilities.

You also want to have provisions if and when one partner wants to exit the business for one reason or another.

Examples of clearly defined agreements:

📝 Partnership Agreement
📝 LLC Operating Agreement
📝 Corporate Bylaws
📝 Articles of Incorporation
📝 Buy-Sell agreement (including insurance policies for death and disability)

🚧 Actionable Items: Review with your attorney what documents you need and/or what documents you have that may need to be updated.

Being a Glitch Guru provides a sample partnership agreement for you to download.

Discuss with your attorney and make sure to include areas of a sensitive nature among the partners. Are there possible inequities for some reason? For example: time off, bonuses, expenses paid for by the company

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Welcome to the Biz Glitch 366 series where we discuss 366 mistakes that we've made and seen in business over 6 decades collectively.

We'll share a mistake of the day aka GLITCHES. We've organized the 366 glitches into 21 categories. Accounting, Bookkeeping, Branding, Business Growth, Business Operations, Business Structure, Credit Score, Culture, Customer Service, Cyber Security, Financing & Financials, Human Resources (HR), Insurance, Marketing, Mindset, Legal Issues, Outsourcing, Sales, Technology, Training/Education, Website Management

WHO WE ARE:
60+ years combined of owning, running and managing businesses and working with thousands of business owners to understand how business can be fun or it can falter.

Know ahead of time what mistakes to manage and what problems to prevent...BECAUSE THEY HAPPEN!

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