Business Partnerships And Romance - Similarities That Most People Miss
Most of us have been in a bad relationship, at least once? So we all should know how it feels, right. There’s always the hurt feelings, shouting and bad communications. By the way did I mention I was talking about a business relationship, not a romantic relationship? These two partnerships have a lot in common believe it or not, lets compare the two.
Perhaps you’ve heard of a partnership agreement form – this is simply a document that specifies the terms of a business relationship between two or more partners in a company. Normally, there are some cut and dried things that must be agreed upon to form a business partnership and this document spells it all out. Everything from the name of the company, who the officers in charge and their titles, where it is located, down to the duties and responsibilities of each partner. Also many times details of how much investment each partner has made, which in many cases determines their share of the profits in the future as well.
So how does this relate to a romantic relationship? Well, let’s break it down a bit and find some similarities. For one, making any assumptions in a relationship can really get you in trouble, right? In a business relationship assuming who is the person in charge can cause tempers to flare fast. In a romantic relationship, well, need I say more? Never assume who is in charge, whether you think you know or not. These things should be decided ahead of time, put down on paper, and kept in plane sight. If one business partner puts 10 times the amount of capital into a business partnership, he should be the one to make financial decisions for the most part, right?
Speaking of assets, when two people are getting married and one has many millions of dollars in assets and the other almost none, isn’t a prenuptial agreement pretty common? You bet it is, since the one person has much more at stake, they have more to lose as well! This is the same in business. The partner that puts up the most money, gets to make more of the financial decisions. However, it should be decided and put into the partnership agreement for all to see. This way down the road no one can argue they didn’t know this was the case.
Another thing to consider is where is the business partnership going? In other words, what direction do each of the partners see this company going, say in five years, or ten years down the road? This is the exact same question that should be asked of a romantic relationship as well. If you don’t have the same goals in mind, why form a partnership in the first place. Find out with a good business partnership details.
Here’s another point, just to make my case. How about division of labor? Who takes out the trash at your house – someone has to do it and it’s usually the same person. Same thing with a business, one person usually handles certain tasks, like the hiring and firing of employees, paying the employees, ordering new supplies, doing the taxes, marketing the products(s), and a whole host of other things a business must do on a daily basis. These tasks need to be done, and determining who is responsible is critical in a business partnership agreement. Same as in a romantic relationship as well, only the tasks are much different.
So if you ask me, a business partnership is very much like a romantic relationship or partnership. Trust, communication, division of labor, responsibility for finances, all these things must be agreed upon to have a good solid partnership.