Alloy Personal Training Business The Truth About Business Partnerships
Did you know that 70% of business partnerships fail? That's right, most partnerships fail due to some mistakes that the partners make early on. In this episode, Rick and Suzanne talk about their business partnership and why it has worked for a long time.
The first thing to consider is choosing the right partner. Business partners should have trust and respect for each other and have complementary skills. It's super important to have clearly defined roles for each partner, ensuring that each person knows their duties and responsibilities to the business and what happens if they don’t perform them.
All these arrangements and expectations are then brought together in a formal partnership operating agreement that clearly defines the nature of the partnership, including the exit plans and other scenarios that may crop up.
Listen in to this episode to learn more about business partnerships and how to do them right from the beginning.
Key Takeaways
- Why 70% of business partnerships fail (01:14)
- How to choose the right business partner (02:29)
- Why it's very important to have clearly defined roles in a partnership (07:09)
- Why you need a partnership agreement (09:45)
- Business partners should have complementary skills sets (12:10)
- Why it's a smart thing to have a formal operating agreement (13:59)
- Planning a partnership exit plan (19:00)
Additional Resources:
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