how to deal with difficult partners so at a great question one of my readers
at a great question one of my readers
at a great question one of my readers yishun love you guys
yishun love you guys
yishun love you guys who are in the SE hi mr. Evan I was
who are in the SE hi mr. Evan I was
who are in the SE hi mr. Evan I was interested in knowing about partnerships
interested in knowing about partnerships
interested in knowing about partnerships like how do we generally need to get
like how do we generally need to get
like how do we generally need to get along with each other for instance we
along with each other for instance we
along with each other for instance we are for people who are doing and working
are for people who are doing and working
are for people who are doing and working on the startup but in the end I get
on the startup but in the end I get
on the startup but in the end I get confused that four partners can’t sit in
confused that four partners can’t sit in
confused that four partners can’t sit in the same chair and share equal money
the same chair and share equal money
the same chair and share equal money with each other even if we do there’d be
with each other even if we do there’d be
with each other even if we do there’d be an ego clash about sharing equal profits
an ego clash about sharing equal profits
an ego clash about sharing equal profits because of work tasks so could you give
because of work tasks so could you give
because of work tasks so could you give me an idea about what kind of policies
me an idea about what kind of policies
me an idea about what kind of policies would be implemented in such a situation
would be implemented in such a situation
would be implemented in such a situation amongst us for partners and how money
amongst us for partners and how money
amongst us for partners and how money should be allocated in such instances
should be allocated in such instances
should be allocated in such instances thanks and regards so it’s a great
thanks and regards so it’s a great
thanks and regards so it’s a great question and one that causes a lot of
question and one that causes a lot of
question and one that causes a lot of stress for people working in
stress for people working in
stress for people working in partnerships a lot of times when you
partnerships a lot of times when you
partnerships a lot of times when you start in the business you think well I
start in the business you think well I
start in the business you think well I can’t do everything myself and I don’t
can’t do everything myself and I don’t
can’t do everything myself and I don’t have all the skills I need so you find
have all the skills I need so you find
have all the skills I need so you find related people have complementary skills
related people have complementary skills
related people have complementary skills and everybody’s all excited at the
and everybody’s all excited at the
and everybody’s all excited at the beginning and then it falls apart as
beginning and then it falls apart as
beginning and then it falls apart as soon as it starts to get difficult and
soon as it starts to get difficult and
soon as it starts to get difficult and tough and being in the partnership is
tough and being in the partnership is
tough and being in the partnership is just like being married where you’re
just like being married where you’re
just like being married where you’re going to have to go through a lot of
going to have to go through a lot of
going to have to go through a lot of great times but a lot of bad times
great times but a lot of bad times
great times but a lot of bad times together too and you have to make sure
together too and you have to make sure
together too and you have to make sure you have the right people with you and
you have the right people with you and
you have the right people with you and not just jump into something because it
not just jump into something because it
not just jump into something because it sounds exciting
sounds exciting
sounds exciting so dealing partners is hard I’ve had for
so dealing partners is hard I’ve had for
so dealing partners is hard I’ve had for the most part great experiences with it
the most part great experiences with it
the most part great experiences with it but I want to give you five suggestions
but I want to give you five suggestions
but I want to give you five suggestions for how to make your partnership work
for how to make your partnership work
for how to make your partnership work number one is have aligned vision and
number one is have aligned vision and
number one is have aligned vision and values this is so important that this
values this is so important that this
values this is so important that this may be a little too late for you because
may be a little too late for you because
may be a little too late for you because you already have your three partners but
you already have your three partners but
you already have your three partners but the start is what’s so important right
the start is what’s so important right
the start is what’s so important right you need to bring on people who have
you need to bring on people who have
you need to bring on people who have complementary skill sets to you but who
complementary skill sets to you but who
complementary skill sets to you but who have a vision of what you want to build
have a vision of what you want to build
have a vision of what you want to build with you right they love what you’re all
with you right they love what you’re all
with you right they love what you’re all about they love what you stand for they
about they love what you stand for they
about they love what you stand for they love the mission that you’re trying to
love the mission that you’re trying to
love the mission that you’re trying to accomplish they’re aligned right they
accomplish they’re aligned right they
accomplish they’re aligned right they love what this company is all about
love what this company is all about
love what this company is all about beyond just making money and they share
beyond just making money and they share
beyond just making money and they share the same values this is so important
the same values this is so important
the same values this is so important this is one thing that people almost
this is one thing that people almost
this is one thing that people almost never look at you have to just like
never look at you have to just like
never look at you have to just like getting married you have to be with
getting married you have to be with
getting married you have to be with somebody who has the same values as you
somebody who has the same values as you
somebody who has the same values as you because most of your fights are going to
because most of your fights are going to
because most of your fights are going to be around values related stuff and if
be around values related stuff and if
be around values related stuff and if you
you
you share different values it’s not going to
share different values it’s not going to
share different values it’s not going to work you can’t get somebody to change
work you can’t get somebody to change
work you can’t get somebody to change what their core values are it’s better
what their core values are it’s better
what their core values are it’s better to align yourself with people who have
to align yourself with people who have
to align yourself with people who have the same core values as you and you have
the same core values as you and you have
the same core values as you and you have the complementary skill set so there’s a
the complementary skill set so there’s a
the complementary skill set so there’s a lot of work that you have to do right up
lot of work that you have to do right up
lot of work that you have to do right up front to make sure that you’re bringing
front to make sure that you’re bringing
front to make sure that you’re bringing in the right partners from the start
in the right partners from the start
in the right partners from the start number two is have defined rules so you
number two is have defined rules so you
number two is have defined rules so you may not be able to choose your partners
may not be able to choose your partners
may not be able to choose your partners now that you already have your three
now that you already have your three
now that you already have your three business partners but you can have very
business partners but you can have very
business partners but you can have very clearly defined roles you have to know
clearly defined roles you have to know
clearly defined roles you have to know who’s doing what I’ve no idea what your
who’s doing what I’ve no idea what your
who’s doing what I’ve no idea what your company does I’ve no idea what
company does I’ve no idea what
company does I’ve no idea what everybody’s responsibilities are but you
everybody’s responsibilities are but you
everybody’s responsibilities are but you have to set that up you have to know
have to set that up you have to know
have to set that up you have to know that you’re in charge of this this guy’s
that you’re in charge of this this guy’s
that you’re in charge of this this guy’s in charge of this she’s in charge of
in charge of this she’s in charge of
in charge of this she’s in charge of that you have clearly defined roles and
that you have clearly defined roles and
that you have clearly defined roles and you don’t step on each other’s toes have
you don’t step on each other’s toes have
you don’t step on each other’s toes have a job description and somebody’s got to
a job description and somebody’s got to
a job description and somebody’s got to be the CEO but you don’t have a four
be the CEO but you don’t have a four
be the CEO but you don’t have a four headed monster at the top of this thing
headed monster at the top of this thing
headed monster at the top of this thing pick one person who’s the best person to
pick one person who’s the best person to
pick one person who’s the best person to lead this business forward that’s your
lead this business forward that’s your
lead this business forward that’s your president that’s your CEO everybody else
president that’s your CEO everybody else
president that’s your CEO everybody else has their roles they have the
has their roles they have the
has their roles they have the responsibilities and you’re not stepping
responsibilities and you’re not stepping
responsibilities and you’re not stepping on each other’s toes otherwise it’s
on each other’s toes otherwise it’s
on each other’s toes otherwise it’s mayhem you’re never going to agree
mayhem you’re never going to agree
mayhem you’re never going to agree you’re always going to be fighting over
you’re always going to be fighting over
you’re always going to be fighting over what to do and that means no progress
what to do and that means no progress
what to do and that means no progress for the company
for the company
for the company number three pay for performance and
number three pay for performance and
number three pay for performance and split the profits so you’re asking about
split the profits so you’re asking about
split the profits so you’re asking about how do you how do you get paid how do
how do you how do you get paid how do
how do you how do you get paid how do you decide who’s worth what enticed with
you decide who’s worth what enticed with
you decide who’s worth what enticed with the profits I’m assuming you’re equal
the profits I’m assuming you’re equal
the profits I’m assuming you’re equal partners right you for your equal
partners right you for your equal
partners right you for your equal partners in the business what you want
partners in the business what you want
partners in the business what you want to do here is you get paid in two ways
to do here is you get paid in two ways
to do here is you get paid in two ways one you have equity right so if you’re
one you have equity right so if you’re
one you have equity right so if you’re going to give a dividend to the owners
going to give a dividend to the owners
going to give a dividend to the owners or if you’re going to have a management
or if you’re going to have a management
or if you’re going to have a management bonus or if you’re going to have profit
bonus or if you’re going to have profit
bonus or if you’re going to have profit sharing that should be equal right it
sharing that should be equal right it
sharing that should be equal right it should be based on how many shares you
should be based on how many shares you
should be based on how many shares you have if if somebody owns twice as many
have if if somebody owns twice as many
have if if somebody owns twice as many shares as somebody else amongst your
shares as somebody else amongst your
shares as somebody else amongst your four partners then that person gets
four partners then that person gets
four partners then that person gets twice as much of a dividend when you’re
twice as much of a dividend when you’re
twice as much of a dividend when you’re sharing those profits at the end of the
sharing those profits at the end of the
sharing those profits at the end of the year or however you’re going to do it
year or however you’re going to do it
year or however you’re going to do it right so the profit sharing is equal but
right so the profit sharing is equal but
right so the profit sharing is equal but what doesn’t have to be equal
what doesn’t have to be equal
what doesn’t have to be equal necessarily is the performance based pay
necessarily is the performance based pay
necessarily is the performance based pay so you want to make sure that everybody
so you want to make sure that everybody
so you want to make sure that everybody that is on the team is getting paid
that is on the team is getting paid
that is on the team is getting paid right the Presidents getting paid you’re
right the Presidents getting paid you’re
right the Presidents getting paid you’re developers are getting paid your market
developers are getting paid your market
developers are getting paid your market birds are getting the paid however you
birds are getting the paid however you
birds are getting the paid however you split up your four roles everybody is
split up your four roles everybody is
split up your four roles everybody is getting
getting
getting and typically what companies will do is
and typically what companies will do is
and typically what companies will do is figure out how much would it cost to
figure out how much would it cost to
figure out how much would it cost to replace that person about to go in hire
replace that person about to go in hire
replace that person about to go in hire so I’m going to come out to be that
so I’m going to come out to be that
so I’m going to come out to be that person to be that lead programmer to be
person to be that lead programmer to be
person to be that lead programmer to be that marketing director to be that CEO
that marketing director to be that CEO
that marketing director to be that CEO what would it cost me to find a
what would it cost me to find a
what would it cost me to find a replacement salary for and that’s how
replacement salary for and that’s how
replacement salary for and that’s how much that person gets paid now at the
much that person gets paid now at the
much that person gets paid now at the start of a new business you don’t have a
start of a new business you don’t have a
start of a new business you don’t have a lot of money you’re not raking it in yet
lot of money you’re not raking it in yet
lot of money you’re not raking it in yet so quite often what companies will do is
so quite often what companies will do is
so quite often what companies will do is everybody gets the same pay everybody
everybody gets the same pay everybody
everybody gets the same pay everybody gets the same profit chairs until you
gets the same profit chairs until you
gets the same profit chairs until you start making some real money and then
start making some real money and then
start making some real money and then people start to fight right when there’s
people start to fight right when there’s
people start to fight right when there’s no money when the company’s not making
no money when the company’s not making
no money when the company’s not making anything you don’t have fights over
anything you don’t have fights over
anything you don’t have fights over who’s taking what because there’s not
who’s taking what because there’s not
who’s taking what because there’s not enough but when your company starts to
enough but when your company starts to
enough but when your company starts to make money then people start feeling
make money then people start feeling
make money then people start feeling like hey I’m worth more I’m adding more
like hey I’m worth more I’m adding more
like hey I’m worth more I’m adding more value here
value here
value here I should be earning a higher salary and
I should be earning a higher salary and
I should be earning a higher salary and what you can do is look at what that
what you can do is look at what that
what you can do is look at what that person is bringing and what real cost to
person is bringing and what real cost to
person is bringing and what real cost to replace them so everybody can pretend
replace them so everybody can pretend
replace them so everybody can pretend you have a different salary if people
you have a different salary if people
you have a different salary if people are bringing different value if it’s
are bringing different value if it’s
are bringing different value if it’s more expensive to replace one person in
more expensive to replace one person in
more expensive to replace one person in another but if you’re owning equal
another but if you’re owning equal
another but if you’re owning equal shares then you split the profits
shares then you split the profits
shares then you split the profits equally number four is have a tiebreaker
equally number four is have a tiebreaker
equally number four is have a tiebreaker sometimes people fight and you’ll have
sometimes people fight and you’ll have
sometimes people fight and you’ll have partners who just do not agree on
partners who just do not agree on
partners who just do not agree on something and you need to have somebody
something and you need to have somebody
something and you need to have somebody who can be that tiebreaker for you so
who can be that tiebreaker for you so
who can be that tiebreaker for you so you’re in a situation where you have
you’re in a situation where you have
you’re in a situation where you have four partners right so you might have
four partners right so you might have
four partners right so you might have three partners against one or or four
three partners against one or or four
three partners against one or or four against none which is great but the
against none which is great but the
against none which is great but the problem comes what have two people agree
problem comes what have two people agree
problem comes what have two people agree on one side and two people agree on the
on one side and two people agree on the
on one side and two people agree on the other side how do you how do you solve
other side how do you how do you solve
other side how do you how do you solve that what a lot of companies will do is
that what a lot of companies will do is
that what a lot of companies will do is they have an advisor who will be a part
they have an advisor who will be a part
they have an advisor who will be a part of the company and own 1% of the shares
of the company and own 1% of the shares
of the company and own 1% of the shares and that person is called on to split
and that person is called on to split
and that person is called on to split the vote right so it might be your
the vote right so it might be your
the vote right so it might be your accountant there might be a lawyer
accountant there might be a lawyer
accountant there might be a lawyer potentially a banker somebody who can
potentially a banker somebody who can
potentially a banker somebody who can add value to your business who can give
add value to your business who can give
add value to your business who can give you advice it could be a coach it could
you advice it could be a coach it could
you advice it could be a coach it could be a mentor could be a business person
be a mentor could be a business person
be a mentor could be a business person you look up to who owns a really small
you look up to who owns a really small
you look up to who owns a really small piece of the company and they can come
piece of the company and they can come
piece of the company and they can come on board if you guys are ever in a
on board if you guys are ever in a
on board if you guys are ever in a deadlock that you can’t get past because
deadlock that you can’t get past because
deadlock that you can’t get past because you need to make a decision to move on
you need to make a decision to move on
you need to make a decision to move on you will not have success just
you will not have success just
you will not have success just constantly fighting amongst each other
constantly fighting amongst each other
constantly fighting amongst each other and so a lot of companies who are in
and so a lot of companies who are in
and so a lot of companies who are in partnerships will have that person set
partnerships will have that person set
partnerships will have that person set up as a type
up as a type
up as a type and number five is have a great
and number five is have a great
and number five is have a great shoulders agreement as sad as it is to
shoulders agreement as sad as it is to
shoulders agreement as sad as it is to say you know I’m the guy who believes
say you know I’m the guy who believes
say you know I’m the guy who believes but as sad as it is the same most
but as sad as it is the same most
but as sad as it is the same most partnerships don’t work out and now
partnerships don’t work out and now
partnerships don’t work out and now you’re talking about having four people
you’re talking about having four people
you’re talking about having four people in a partnership it’s probably not going
in a partnership it’s probably not going
in a partnership it’s probably not going to work out with everybody staying on
to work out with everybody staying on
to work out with everybody staying on board for years and years if you look at
board for years and years if you look at
board for years and years if you look at the history of companies it’s very very
the history of companies it’s very very
the history of companies it’s very very very rare that happens and so what you
very rare that happens and so what you
very rare that happens and so what you want to do is make sure you have a great
want to do is make sure you have a great
want to do is make sure you have a great shareholders agreement and what it does
shareholders agreement and what it does
shareholders agreement and what it does is outlines the rules for coming in or
is outlines the rules for coming in or
is outlines the rules for coming in or leaving a partnership so for example one
leaving a partnership so for example one
leaving a partnership so for example one of the causes you want to have is as a
of the causes you want to have is as a
of the causes you want to have is as a shotgun agreement so you need the
shotgun agreement so you need the
shotgun agreement so you need the shotgun clause you’ve got to have that
shotgun clause you’ve got to have that
shotgun clause you’ve got to have that in a basically what it means is you can
in a basically what it means is you can
in a basically what it means is you can if somebody’s being a big pain you know
if somebody’s being a big pain you know
if somebody’s being a big pain you know you just cannot get along with this
you just cannot get along with this
you just cannot get along with this other partner or two partners or par you
other partner or two partners or par you
other partner or two partners or par you know that one of them has to leave they
know that one of them has to leave they
know that one of them has to leave they can invoke the shotgun clause and what
can invoke the shotgun clause and what
can invoke the shotgun clause and what it does is basically says either I’m in
it does is basically says either I’m in
it does is basically says either I’m in or you’re in and I set the price I think
or you’re in and I set the price I think
or you’re in and I set the price I think the value of my shares are worth this
the value of my shares are worth this
the value of my shares are worth this amount of money so you can either buy me
amount of money so you can either buy me
amount of money so you can either buy me for that amount of money or I’m going to
for that amount of money or I’m going to
for that amount of money or I’m going to buy you for that same amount of money
buy you for that same amount of money
buy you for that same amount of money and they have to make the decision and
and they have to make the decision and
and they have to make the decision and somebody’s in and somebody’s out and
somebody’s in and somebody’s out and
somebody’s in and somebody’s out and they set the rules and this way you’re
they set the rules and this way you’re
they set the rules and this way you’re not going to court and you’re not
not going to court and you’re not
not going to court and you’re not continuing to fight and it doesn’t cause
continuing to fight and it doesn’t cause
continuing to fight and it doesn’t cause a whole bunch of issues but a good
a whole bunch of issues but a good
a whole bunch of issues but a good charles greane will also outline other
charles greane will also outline other
charles greane will also outline other issues so for example if if somebody
issues so for example if if somebody
issues so for example if if somebody buys you out right same somebody wants
buys you out right same somebody wants
buys you out right same somebody wants to acquire your business do they buy out
to acquire your business do they buy out
to acquire your business do they buy out all the other partners or not or can
all the other partners or not or can
all the other partners or not or can they just buy out too and on 50% of the
they just buy out too and on 50% of the
they just buy out too and on 50% of the shares right does everybody have to
shares right does everybody have to
shares right does everybody have to agree if somebody’s selling the shares
agree if somebody’s selling the shares
agree if somebody’s selling the shares can I go sell my shares to my best
can I go sell my shares to my best
can I go sell my shares to my best friend who’s now going to own part of
friend who’s now going to own part of
friend who’s now going to own part of your business is that okay
your business is that okay
your business is that okay right or do you have right of first
right or do you have right of first
right or do you have right of first refusal if I die do my shares go to my
refusal if I die do my shares go to my
refusal if I die do my shares go to my wife right and then she’s a partner in
wife right and then she’s a partner in
wife right and then she’s a partner in your business is that okay or do you
your business is that okay or do you
your business is that okay or do you have right of first refusal right all of
have right of first refusal right all of
have right of first refusal right all of these things can be figured out because
these things can be figured out because
these things can be figured out because chances are somebody’s going to have a
chances are somebody’s going to have a
chances are somebody’s going to have a problem with the business and it may be
problem with the business and it may be
problem with the business and it may be easy to solve but typically it’s not and
easy to solve but typically it’s not and
easy to solve but typically it’s not and so having a good shows agreement will
so having a good shows agreement will
so having a good shows agreement will save you aggravation
save you aggravation
save you aggravation money and help your business continue to
money and help your business continue to
money and help your business continue to grow so in summary how to deal with
grow so in summary how to deal with
grow so in summary how to deal with difficult partners number one have
difficult partners number one have
difficult partners number one have aligned vision and values number two
aligned vision and values number two
aligned vision and values number two have defined roles
have defined roles
have defined roles number three pay for performance split
number three pay for performance split
number three pay for performance split the profits number four have a
the profits number four have a
the profits number four have a tiebreaker
tiebreaker
tiebreaker and number five have a great
and number five have a great
and number five have a great shareholders agreement and believe for
shareholders agreement and believe for
shareholders agreement and believe for those who are watching like the video
those who are watching like the video
those who are watching like the video you can subscribe to the channel to see
you can subscribe to the channel to see
you can subscribe to the channel to see more just like this thank you so much
more just like this thank you so much
more just like this thank you so much for watching
for watching
for watching I’ll see you soon don’t forget to check
I’ll see you soon don’t forget to check
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