27 Dec Lets get Married! …I mean, go into business together
It starts in pretty much the same way every morning. A groggy start to yet another work day. You exchange coffee with your partner and his or her weary eyes show strains of worry about the incoming loads of work. Preparations for the day ahead get under way and then its off to work.
Typical married couple? Nope, that’s your average small business partnership we’re talking about. It’s easy to get confused. Some partners know more about each other than their real spouses and some, even see more of them. You and your partner spend so much time together at the office that you might as well get married! The similarities between a wedded couple and of a partnership are uncanny. Firstly, you have a binding contract to be together also you share your assets with your ‘special someone’, whats more, your partnership agreement is the business worlds equivalent of your marriage agreement. In addition communication is vital, just like it would be in any marital engagement and the company you both run together takes the role of your child. You cherish it, feed it (with capital) and hope that it will grow and one day help you.
Just as with any relationship, disagreements on the company’s future are bound to occur and this, fueled by the fact that more often than not one partner will be more fond of his partner than the other would mean each day would be interesting.
The sad part about these arguments and is that there will come times where the partners do not get along. This, or course, calls for the corporate worlds divorce. The termination of the partnership contract. A common occurrence in the corporate world just as divorce is common. Let’s face it, not everybody has the knack for getting along. That is, after, all the very reason there are escape clauses in just about every agreement out there. Once the fighting comes to that point where you can’t take it anymore; getting out of the agreement is the workable option. And who knows? If you’re lucky, you might even get something out of the settlement.
Importantly, even as you two continue to blush and have butterflies during the ‘honeymoon’ stage, always sign that prenup. Always. (Shareholders agreement equivalent) You never know who may wander off with that 23 year old secretary or delivery boy.
(Thumbnail image from How to Protect Yourself in a Business Divorce – Good read)