In this week’s episode of Freedom Fast Lane Ryan Daniel Moran explores business partnerships. This can be one of the most expensive decisions you will ever make so it’s important to be informed. What are the myths? When does it make sense to partner? How do you assess a potential partnership? Ryan answers all your questions and highlights the unconscious mistakes you may already be making and what to do about it. If you’re thinking you may want to enter a business partnership then make sure you listen to this podcast first!
Partnership Fallacies (Myths)
- Getting into a partnership will halve your workload
- You should partner with people who are just like you or always agree with you
- Ideas are worth significant equity
- All partnerships are 50/50 split
Key Lessons Learned
- We will never have a perception that our partner is carrying half the workload.
- The combined resources in a successful partnership should be more than two times what we could have done together.
- If you are partnering with someone just like you then one of you is unnecessary.
- The ‘idea’ is the smallest part. The implementation process is what is driving the value in a partnership.
- If you have the cash to avoid going into partnership then do so.
- If you can hire out then don’t give up half of your company unless they are not going to make it twice as strong.
- You can fire an employee but you can’t fire a partner (you have to buy them out).
- If you are bringing money to a partnership then that alone can be worth 50%.
- A good test is Kolbe.com. It reveals how you get things done and if you will work well together.
- In business, equity is the most important thing. If you end up selling your company equity could be worth millions.
- Equity is the most expensive thing in your business.
- Choose who you share your equity with very carefully.
When it makes sense to partner
1. If someone has cash and the other person implements or has time.
2. When you are first starting out and you are looking for someone with complimentary skills. This is also a good idea when you don’t have cash to hire employees.
Approaching and assessing a potential partnership
- List your best skills and where your greatest values are.
- Ask yourself where you can focus in order to complement instead of stepping on toes.
- What value do cash, expertise and contacts have?
- Be very clear on what the roles and expectations are.
- Ask yourself a bunch of ‘what if’ scenarios and be able to answer them for clarity’s sake.
- When two people partner because they both had the idea.
- When you partner on skills that you could hire out.
How to find potential partnerships
- Look at people in your tribe and groups you are in
- Through your success network.
- Outstanding students, case studies, and your best employees.
- Find people who will benefit from your expertise.
On your iPhone? Listen on iTunes here.
Links to Resources Mentioned
How to develop your success network (previous podcast)
Click to Tweet!
Ryan Daniel Moran
Ryan Daniel Moran is one of the most sought after speakers and thought leaders on lifestyle freedom in the world. He specializes in creating extremely profitable cash flow streams and businesses without compromising your lifestyle. Ryan is passionate about inspiring, educating, and empowering people to live extraordinary lives, and he believes that anyone can live the life of their dreams as long as they take responsibility for their results and take consistent action toward getting what they want. When Ryan isn’t inspiring his listeners and readers, you’ll find him at an improv show, a Cleveland Indians game, or traveling the world.