| While the collaborative effort is great for | | | | working? What if a majority of owners want to |
| thinking out an idea, potential problems and | | | | go in one direction, but one person does not? |
| so on, it can ultimately lead to disaster. | | | | How will each of these issues be handled? |
| Ironically, this is particularly true if the | | | | Whatever your decision, it needs to be put in |
| business is successful. The problem? Sharing | | | | writing. Depending on the structure of your |
| power. | | | | business, it may come in the form of a |
| | | | buy-sell agreement. Regardless, the idea is |
| If multiple people start a business, they | | | | to make sure you cover these issues up front. |
| often refer to it as "our business". At the | | | | |
| outset, this isn't really a problem. As time | | | | At this point, you might be thinking you |
| passes, however, each owner may start to have | | | | really would be uncomfortable discussing |
| very different ideas about what "our" | | | | these issues. After all, everyone trusts each |
| business should be doing, how it should grow, | | | | other, right? Maybe, maybe not. What tends to |
| niches it should get into and so on. When | | | | happen is you find out that maybe some of the |
| this occurs, "our" business soon becomes "my" | | | | owners have some very different ideas than |
| business. The problem, of course, is each | | | | you do. It is always best to find this out |
| owner is saying this. Conflict soon follows. | | | | before revenues start coming in. Why? People |
| | | | are not eying the business bank account. They |
| If you start a business with others, it is | | | | will be reasonable in discussing matters. In |
| very important to understand that you are | | | | a worse case scenario, you may not be able to |
| essentially getting married. This is true | | | | work things out. If that occurs, at least you |
| even if you had the original idea, work | | | | found out before spending a lot of blood, |
| harder than they do and so on. Ownership is | | | | sweat and tears on the business. |
| ownership. Much like a marriage, you should | | | | |
| give consideration to the business equivalent | | | | It is common to start a business with more |
| of a prenuptial agreement. | | | | than one business owner. Such businesses |
| | | | often do very well since the workload is |
| At the outset of any business venture with | | | | shared. To avoid problems, just make sure |
| multiple owners, time should be taken to | | | | everyone is on the same page up front and get |
| discuss what happens if there are problems. | | | | it in writing! |
| What if someone dies? What if someone stops | | | | |