3 of My 7 Business Partnerships Have Gone Up in Flames

It was hell that I don't wish on anyone.

Below are 8 tips learned from hard experience so you can avoid a similar fate.

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Please excuse the vulnerability

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1. Don't be the odd man out

2/3 of my failed partnerships involved a 3-way partnership between myself & 2 long-time friends

Where do you think bias gets directed?

Both sets of people felt justified at the time, but both got sued & lost.

Either you have an ally or no one does.

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2. Experience w/ the partner is more important than their experience in the field

In the above-failed partnerships, I had just met the guys.

It was dumb of me.

Both had a ton of experience in the field, but I had almost no experience with them.

Don't get engaged on the 1st date!

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3. Don't define the relationship too early or too late

It's a fine balance!

If you split the pie on day 1, you have no idea how things will evolve.

If you do it on day 100 it could be too late.

You need to keep things loose while you see how everyone performs, then tie the knot.

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4. Plan for an ugly breakup

I don't have a prenup with my wife, but I now do with all my partners.

Plan for the worst-case ugly scenario. 

Contracts aren't for peacetime, they're for war.

Be sure each partner has their own lawyer review & you MUST have a buy-sell agreement.

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5. Schedule 1 hard conversation per month

I served a church mission & every week we HAD to have "companionship inventory" w/ our partner.

This means "talk about what pisses each other off."

If it's on the calendar it's less intimidating & awkward.

These convos MUST happen!

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6. Don't trash talk your partner, ever

My wife & I have this same rule.

Doing this will cause you to develop confirmation bias & find fault in everything they do.

It's toxic & it makes you the problem.

Instead, bring it up with them in your monthly meeting and record notes.

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7. Partnerships with close friends are very high risk and high reward, so think twice

I lost my lifelong best friend to a failed partnership 3/3.

It was incredibly fun while it lasted, but we broke almost every rule above. I was immature.

It wasn't worth it & it's a huge regret.

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8. Make a plan for when someone feels screwed

Do you really think a 50/50 partnership is truly 50/50? 

Of course not.

Either one or all of you have to be selfless, or you need contingencies for when 1 covers most of the workload or capital contributions.

Get it in writing!

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I hope these help someone avoid a similar fate. 

The good news is I had 4 other partnerships that were/are awesome.

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There are two sides to every story & I'm not perfect.

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I do think startups are better with a good partner, just tread carefully! Also, forgive.

Thanks for the love. Would always appreciate a follow - @mhp_guy