Why I DON’T Have Business Partners (and why you shouldn’t either!)

Why I DON’T Have Business Partners (and why you shouldn’t either!)


How many people do you know that I’ve
entered a business partnership for it to end up in the shitter I’m willing to bet
that you know more than one in this video I’m going to tell you when to
enter a business relationship and when you shouldn’t I’m not gonna name any one
in particular because I’m not about that life but there has been so much beep
going around in this structuring space in the econ space around people getting
into partnership business partnerships where it’s not right for themselves are
not right for the partner and there’s been fallouts happening everywhere
so let’s get off to the first point then talk about when you should take a
partnership and go into business with somebody that you may or may not know
first and foremost if you want to go into a business partnership then you
need to have trust and that is the number one point and this impacts
absolutely everything else when it comes to business and the structure and the
partnership itself you need to know your business partner inside out
inside out in terms of a personal relationship and business relationship
you need to know how they operate as a person and how they operate is business
partner you don’t want any surprises once you sign contractual agreements
when it comes to fallouts what I find that happens often is there’s an element
of surprise and what I mean by that is one of the partners or is often
surprised that their other partner went behind their back or made a certain
decision when it comes to business that’s data they can’t sit with and
there’s always an element of surprise if you know this person inside out that
will help mitigate the surprise or any sort of you know tension there the
second reason or the second situation when you should enter a business partner
relationship is when you have tested a product and you’ve got an MVP in other
words a Minimum Viable Product and you’re ready to go into market but you
just don’t have this to execute on the entire business itself
that’s when a partner comes in and that really helps you in the sense that
they’re able to take the workload you’ve got the idea they’re able to take the
workload and run with it or you’re able to split the workload now that’s when a
business partners and partner relationship is extremely useful for the
person that you pick to go into partnership when you do have a viable
product and mock about to launch in market is very extremely important
there is a book written by Gino Rickman a quad traction get a grip on your
business and all I could down below if you’re interested in this book
essentially he talks about a visionary and an integrator now the visionary is a
person with a big picture with the idea for the business and the integrator is a
person that comes in and absolutely executed everything he or she is the
know-how person technically but each of them need to be a sounding board to each
other that is extremely important in getting the business into the direct
right direction and also getting it off the right foot the third point is having
an end goal in mind now this is probably pretty big for any sort of business
where they come to drop shipping or e-commerce or anything else if two
people come together and they don’t know what the end goal is they can go about
greatest or you know generate six figures in income but where are you
going to take the business what is the end goal are you trying to be bought out
are you trying to take it to the next level in the sense that you want seven
digits in sales you need to have this end goal in mind between you and your
partner before you start the venture because certain people will take the
business in a certain direction it may not sit well with one another so you
need to be very clear with where you’re going to take this business before you
sign an agreement because contractual agreements can get very expensive and
even more expensive when you fight over contractual agreements and that segues
on to why you shouldn’t go into business partner relationship now personally for
me I’m not the biggest fan of partnerships simply because I’ve seen
way too many people burnt in the past through stories
haven’t really gone to business partner partnership myself and I’m not ruling it
out however this is just how I operate I love working for myself and myself only
I like to build a team rather than going into partnership with somebody where
there’s a lot of accountability in different structural systems you need to
think about where I just like to you know obviously work for myself and I
really like having accountability in myself so that’s the first point the
first point is accountability is all on yourself now some people might like this
some people might may not like this but I like being accountable and that’s why
I like working for myself in general rather than working for a boss or a
partner or whatever it might be accountability is very important to me
because if I’m doing something right and I’m seeing success you can share knowing
that it’s on you you you’ve created that success for yourself now of course it’s
gonna be a team effort in the sense that you may have team around you but still
your own success you founded the company now on the flip side if you run into
issues and you’ve messed up there’s no one to blame the blame game is so you
know toxic it’s very toxic it starts argument it creates divide
between people now if you’re working for yourself and you know in partnership
it’s all on you now that’s scary but also liberating so I love that freedom I
guess I guys are the second point of being focused I’ve always preached that
focus is the key word when it comes to being successful in business focus is so
extremely important so when you’re not in partnership you don’t need to be
worried about the trust issues or appeasing the other partner because it’s
all on you once more so you’re focused on purely the business and the business
itself your focus and achieving your own goals that you set for yourself
at this point you’re probably realizing I’m not the biggest fan of business
partnerships but let’s continue the third point is you can still build a
team around you you can you have resources not having a partner
doesn’t mean that you’re one person less that you’re not as well-off but instead
you can create a team around you you you can’t create the resources and the best
part is it’s on you own the business you own a hundred percent stake in the
business rather than a 50/50 split or whatever difference but there you have
going on it’s all yours but you create the team you create the
structure you are the boss the fourth reason why you shouldn’t go into
business partnerships is because the legal set up just becomes so much more
confusing than it already needs to be for example the two partners or multiple
partners need to figure out what percentage of state they have in the
business there could be already disagreement
around how much of the business that they owed and subsequently how much
revenue that they take from the business when you go into business partnerships
you also need to remember that there is a lack of limited liability and joint
liability so in other words if you were to get sued for example there is less
protection now remember I’m not a lawyer I’m not a business DA I’m not an
accountant so take this all with a grain of salt and of course drafting a
partnership agreement which is an extremely important piece of document
when you go into business partnerships is extremely expensive plain and simple
it is actually very expensive to draft an agreement you should ideally talk
about it sit down and agree beep between your cells first based off word and then
when you completely agree you need to draft it with an accountant and lawyer
whoever you’re managing it with and that could be extremely expensive – in the
last and maybe one of the most important points as to why you shouldn’t go into
business partnerships is if you are completely convinced about your product
you believe that it will succeed it will generate income few that it will help
benefit other people’s lives then you shouldn’t go into partnership if you
have the drive and the ability to execute on the business idea then my
suggestion is to create a team rather than going to a partnership double down
on it take the time to create the business yourself go
learn go get mentors and do it for yourself so guys I hope this vid didn’t
scare you off when it comes to business or partnerships but rather that it gave
you perspective to an extent on what you should consider when going to
partnerships because a lot of people go into partnerships without thinking about
these points that I’ve just given you in too much detail so I really hope this
video has helped you in next week’s video okay I’m going to be talking about
a big change on Facebook particularly around budget management and the
algorithm so if you’re on Facebook Ads and you spend your money with Facebook
then you really need to tune into next week’s video because it’s going to be
extremely important

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About the Author: Oren Garnes

7 Comments

  1. HI, I am 15 years old and am doing dropshipping! My question is: 1 Are there any 15-year-olds doing dropshipping? 2 My second question is: is it good that I start dropshipping when I am 15?

  2. AMEN to this advice. I have been burned by a business partner in the past and i vowed never again to go into a biz deal with anybody other than family.

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