The Game with Alex Hormozi What I learned after countless failed business partnership | Ep 308
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Jun 10, 2021 Explore the essential elements of successful business partnerships, from defining roles to establishing clear exit strategies. Discover the pitfalls of improper structures and why communication is key in navigating conflicts. The discussion also highlights alternatives to traditional partnerships, such as performance-based agreements and revenue sharing. Learn valuable lessons about separation and maintaining professional relationships when parting ways with partners.
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Define Roles and Responsibilities Upfront
- Define roles, responsibilities, and share structure upfront.
- Discuss the "ugly" aspects like exit strategies early on.
Reasons for Partnership
- The only valid reasons for partnerships are complementary skills, resources, or time.
- Avoid partnerships based solely on shared interests, as they dilute equity without adding value.
Structure with Performance-Based Incentives
- Structure partnerships with performance-based incentives like phantom equity.
- Tie equity to milestones, ensuring partners earn their share through contributions.