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