Business Tips by Chris Reich
Tips from growing a business to dealing with disputes
The Partner You Have or the Partner You Wish You Had
We often form partnerships because of the way the relationship works. One person wants to be in charge and the other is fine with that. Then something comes up and the expectations cause tension. We have to deal with the partner we have, not the one we wish we had.
Things to Know About Partnership Buyouts— Part 2
Here are more things you need to know if you are opening buyout talks with your business partner.
Things to Know About Partnership Buyouts— Part 1
Buyouts between partners are usually mired in things that people think are legal entitlements. Let’s look at the most common misconceptions around buyouts.
Violence By a Business Partner Is Never OK
If your business partner ever is violent, call 911 immediately. Yes, even if he missed. You want to document threats of or actual violence.
Why Is This a Big Surprise in Buyout Negotiations?
Don’t be surprised if parties act in their own best interest during negotiations. That is normal. I would be surprised if they didn’t!
Negotiate Your Best Partnership Buyout Using Game Theory
Game Theory is a very useful tool in business negotiations. In this post, I’ll give a broad overview on how Game Theory can help you negotiate your best deal with your business partner.
When Does a Partnership Begin? And End?
I get calls from frustrated business partners all the time. Often, the level of tension is so high, that one partner will move the banking, hide the books, take out a lump sum of cash, close out all social media, or some other drastic measure before properly closing out the partnership. This post explains when it is legal to take action in a partnership when a partner is disruptive.
The Fiduciary Duties of Partners in a Business Partnership
Partners in a business partnership, other than limited partners, have legal obligations to the partnership that are called the Fiduciary Partnership Duties. In this post, we’ll look at these duties and, hopefully, clarify what they mean.
You Can Backdate Agreements in Business Legally
Many people are trying to work out new arrangements with their business partner but find themselves in bad place on the calendar. Despite both parties agreeing to a change, it could take months to worth out the terms. Don’t worry.
Discuss, Agree, and Document How Partners Will Be Paid
This might surprise you. Compensation does not have to be equal in a 50-50 partnership. You can, in fact, do anything you want as long as it’s agreeable with your partner or partners. Read on!
In Mediation Use Sense and Don’t Fight Over Cents
When business partnerships go bad, very often someone wants out. That starts one of two possible processes. The business enters Wind Down and begins the process of closing or the partners start discussing a Buyout.
Funny Friday: Video Conferencing
Video Conferencing is sometimes riddled with issues. If you’re working remotely this should give you a good laugh. Enjoy, Chris Reich
Do Not Stop Working if You Want to Leave the Partnership
When the business partnership breaks down, the darker sides of the personalities come through. A dominant partner turns into a bully. A person who does not do well with conflict will withdraw. As the bully gets more aggressive, the pacifist withdraws further. Eventually, the bully gets so angry they are ready to lock the other partner out. The pacifist quits coming in. The next blowout is over money. The course is as logically predictable as what will happen to your car if you hit the highway with no oil in the engine. It will get louder and louder until the engine seizes.
How to Draft Resolutions to Strengthen Your Partnership
I recommend that partners talk through a specific issue and then draft an agreement (called a resolution) that sets a policy. You can keep this in a binder to serve as amendments (or foundation) to your Partnership Agreement. In this post I’ll explain how to talk about things that bug you with your partner and how to draft a binding resolution to fix the problems.
When Politics and Business Partners Don’t Mix
Unless you are in some sort of political business, you should keep politics out of your establishment completely. Of course, you have freedom of speech, but we are in very contentious times and displays of political or religious positions might be off-putting to to your customers.
Relatives Should Never Keep the Books in a Business Partnership
Even when people get along well, having one partner’s relative handling the books just isn’t good policy. There is an inherent conflict of interest.
About Documenting Partnership Expectations
Many partnership disputes begin around expectations not being met. But were they ever defined in the first place?
5 Points to Consider When a Partner Is Locked Out Of the Business
Locking a partner out is a risky move. The locked-out partner has rights that if violated could entitle him to reinstatement and damages.