Whenever two or more people join together in business it is always for a joint purpose. Why else would they bother? If they personally had all the necessary skills and all the necessary cash they would just go it alone.
Before absolutely anything is done there are 4 fundamental issues that should be ironed out and agreed and written down.
- These are the 4 things which will cause this joint venture to fail.
- These are the 4 things which will cause family and friends to fall out big time.
Trust me it can get (really) nasty…
One of the nastiest disputes I have been involved in in recent years was between 2 brothers who shared money, did joint deals and became very financially entangled. When they fell out over family matters their business affairs all fell to pieces too and it was nigh impossible to sort out who owned what and who owed what to whom.
So → Please agree and write down:
- Who is doing what exactly
- Who is paying for what and when
- What happens at the end
- What happens if it all goes wrong
Image Credit: Kevin Dooley.