Descent Into Hell: Poor Partnership Planning Can Cost You Everything

It’s Worst-Case Scenario Week on “Run a Profitable Gym.”

Today, host Mike Warkentin is joined by Matthew Becker, owner of GymLaywers.com, who shares stories of partnerships from hell and explains how to avoid them.

Partnerships in gyms can go wrong fast and create living nightmares for entrepreneurs. Partners might have very different views on topics such as dating members, day-to-day operations and finances, and sometimes a partner might even be involved in illegal activities. Or maybe one partner just isn't pulling their weight.

Without solid agreements in place, these situations can spiral quickly.

For example, gym owners in need of money might sell paid-in-full memberships, then have a disagreement and close the gym abruptly, leaving members out of pocket. In the worst cases, the money is long gone, and the owners can find themselves facing criminal charges.

Matthew, former gym owner, shares tips for avoiding these situations and getting out of them as quickly as possible if you run into partner trouble. It boils down to proper business setup, management and documentation.

To ensure your business will protect you legally and financially, get a lawyer to create or review a partnership agreement. You can reach Matthew at Gymlaywers.com.

Links

"Your LLC Isn't Protecting You if You Do These 5 Things"

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1:41 - Potential legal problems with partners

10:24 - Preparing for the snowball

19:32 - Partners leaving and presales

29:26 - It keeps getting worse?

38:39 - Stopping the daisy chain from hell