Why I Don’t Believe In 50/50 Partnerships (And How To Structure A Business Partnership)
HTML-код
- Опубликовано: 16 янв 2019
- Controversial Video Alert
Why I don’t believe in 50/50 partnerships and why most business partnerships are a bad idea...
This is the best advice I’ve ever been given when it comes to business partnerships.
SUBSCRIBE here: bit.ly/chandlerYT
Check out what we're doing at Self Publishing School here: self-publishingschool.com
Learn about booking me to speak here: • Chandler Bolt - Speake...
Do you agree or disagree that 50/50 partnerships are a bad idea? Comment below and let me know!
P.S. Watch my video on How To Buy Out Your Business Partner (And How To Value Any Business) HERE: ruclips.net/video/-ixNJNz5O-Q/видео.html
Hey man thank you for the knowledge, I started a flooring business and then brought my buddy on, I needed the second set if hands and the second vehicle, he has no knowledge on the business but he's loyal so far and can learn, but I agreed to give him half profits and he took it off my word. He is starting to push more towards signing legal papers on it. I said I would do a 51/49 partnership and agree to split profits, does the 51% give me all the power I need to call the shots and possibly fire him which I wouldn't want to but I don't want somebody to get 49% and just stop showing up. I want to be able to call all the shots because it's my business and my knowledge and my 10,000$ that went into this business. Please give some advice if you read this man and good luck to you.
OH YEAH , IM SUBSCRIBING OFF YOUR BELIEF SYSTEM ALONE !!!!!!!!
Definitely agree! I started two different equal partnerships, and it’s also hard to agree on decision making.
I can relay, I'm having the same issues atm. I am the one with all the ideas, the drive, the business plan to every detail, and doing all the work, yet the partner wants 50% of future earnings. Dead weight is an appropriate expression 😐
Hello I have a question I started a business 50/50 and we share equally in term of money investments but the company is not operational yet and I did 96% of the entire work but my business partner only did 5% but we are on 50/50 without business operations agreement. I’m frustrated but how can make her get less since she’s not do anything?
Gees....I wish I would have seen this video 35 years ago. Here I am now on the verge of retirement and my partner and I hate each other’s guts which bleeds over to the staff and with throwing some Covid in the mix I feel like the business is hanging by a thread. Your advice IS SPOT ON. Anyone contemplating partnering up with someone needs to heed your advice. I’m in my 60’s and stressed out constantly, I overeat, I over drink, I’m overweight, I have high blood pressure, and have suffered from clinical depression. Your first rule hit my like a truck....I partnered out of insecurity. HUGE MISTAKE.
My second huge mistake was not to take an exit that presented itself 7 years into the partnership due to financial concerns. I would trade it all in a heartbeat if I could do it over again. It is not worth your life to stay in a business with someone with whom you are not compatible. One of my mentors in school used to say..”If it’s not fun, it’s not worth doing”. That is absolutely true. As you can guess, this has not been fun. I also love your advice on creating an operating agreement. What happens if one of you gets seriously ill and can’t perform their duties for 8 to 10 weeks? When should disability kick in and the business stop being responsible for your salary? There are so many little details that you would never think of that become HUGE THORNS in your butt when they come up during the course of running your business. I also love your advice creating an exit plan at the same time if you do partner up so there are no complications if one partner wants to leave. If you can’t agree on how to separate before your sign a partnership agreement, DO NOT SIGN A PARTNERSHIP AGREEMENT. Thanks for letting me rant, this has been kind of cathartic.
You not alone..
Hey your comment is great, What other advice do you have as far as your experience with the partnership and what was the cause of you and your partner not liking each. I am sure something was the spark to approach him or him to approach you way back when y'all decided to partner up.
@@eddygallegos745 ego clash, limelight effect, partner thinking he's worth more cause he's doing much work(other hand, u also doing the insides jobs which he can't see)
@@isshanshah5494 Help I partnered with my friend I told him am creating a business and he ask to join I said yes cause the e are so closed I didn't want them to hate me I regret it help
@@sarsvfx hey relax, first tell me your whole situation on a Detailed way. See, when we think they r just free with ourselves /hangout with us doesn’t mean, we r close to them. If u still want a partner, u gotto remind that, u both have to be the same passion expression and respect towards privacy each other. Sometime one might be sick,so you need to step up. Also dont try to divide your profits, first earns a lot then talk bout that.
Its the soft chuckle after you speak your real truth 🧘🏽♀️ Great information!
I'm in a situation now with a 75/25 partnership with me being the minority - and the company finally making a profit. I made the mistake of not having a detailed operating agreement and now having to have difficult conversations about owner's salaries and owner distributions. While the other partner is the founder and majority owner, I'm finding myself putting in more hours and growing the business than he has. Great video I wish I would have seen a few years ago!
Jeff I’m curious to hear how this has progressed since you posted? Any outcome? I’m curious do you wish you were on your own at this point or was there a great benefit to partnering?
@@startupsavages After several pointed conversation with my biz partner to try and align on a common vision of operating a business vs. a hobby, it really hasn't improved that much. We have yet to implement a profit first model for the 2 owners. Looking at other business opportunities now as a sole owner and spending less time at the partnership business.
You got yourself at the short end of the stick. Lol 😂
Fuuuuuuuu*# dude......... I'm just recently going through my first partnership burn, which ended incredibly FUC*#D up(I just can't put into emphasis the depth of my meaning in a short summary. One day this, and my story will be told; but it is not this day.).
I spent a GREAT deal thinking about where I went wrong, how it could have been avoided, and averted. I came up with a FANTASTIC partnership operating agreement, that every aspect of which you've just confirmed, and then some(a lot).
This was greatly inspiring and reinforced my confidence as a entrepreneur. I'm subscribed to few, and even fewer subscribed upon first video(this may be a first); but you were so spot on in EVERYWAY and then some, I knew instinctively I could learn a great deal more from you.
Thank you so much, and I'm looking forward to watching all your videos and new content!
You nailed it for me. I’m the one stepping into a possible partnership with someone who has already been screwed multiple times. You hit my end to not jump out of insecurity but also a way to introduce my idea to a person that is going to be wary about the offer because of past experiences. I’m not trying to ride someone else’s success at all but if I can prove my intention and do exactly what I would do for my own business I think it could be a runaway success or a fuckin legal nightmare. That being said that’s a risk you incur on your own or in a partnership. Unless you are completely self invested you are not the owner is my understanding
Your video is quite informative for my current situation I’m in with a 50/50 Partnership. You mentioned everything I’m dealing with and what I need to do moving forward. Thank you very much
Great to hear! Are you at the point of a buyout?
This video should be helpful with next steps: ruclips.net/video/-ixNJNz5O-Q/видео.html
Excellent. Great food for thought. I was planning on going into a partnership but you provided me with all the insight that I needed. Bless you
Great to hear! No longer going into a partnership? Or what are your next steps now?
One of the better advice videos i’ve seen on business partnership. Thank you
Thanks!
im glad i watched this before starting any business partnerships. thank you for your input!
Glad it was helpful! 🙌
Thank you so much I have a business plan in my head since long and last week I got an offer of 50-50 partnership. I was about to go into it but honestly you saved me. This was the much much needed advice for me at this point. ( two thing got me ..1) there is 50-50 only in money not in work time and efforts. 2) they can say you that they don't think you are working that hard and can actually ask you to leave the chair or compromise over percentage. So so so true and great advise )thank you
I’m in the process of preparing a partnership agreement, and this has been very helpful… eye opening and validating - thank you
Good tips! Well thought out and prudent. Thanks, Chandler!
Thanks! Biggest takeaway?
Like Like Like Like, u dont have ideia how essencial u have been to my business, thank you. Much love from Brazil
I'm about to start a new business (Im 18 rn) because i don't have any previous partnership experience I decided to search and get advice from professionals as I do with most of my life.
to be honest the first point got me, I was thinking about partnership with my friend bc of an insecurity. actually I have the skills needed for the business while he just have time to put in without valuable skills. after this video I decided to start it by myself, it may be hard and a lot of work at first but I think I won't regret it later. also I heard from someone this " if you want to loose a friend or a family member go in a partnership with them" something like this, so now I will have my business just for me and I will keep my relationship good with my friend.
Best video I've seen! My gosh thank you.
Hey man, I've watched a couple of your videos and I really admire your attitude and positivity. I'm confident you'll go far!
Your comment on partnering out of insecurity hit home. I'm 26 and have been operating an established manufacturing company for the last 18 months with the intent to purchase from the owner, but I've gotten cold feet as I don't have a natural skillset in product development, which I believe is critical for the long term success of the company. Anyways, I have been thinking more on profit sharing (as opposed to partnering) and it was reassuring to hear you talk about that.
Thanks for sharing your wisdom!
Great to hear! I also have a video on how to setup a profit share in case that’s helpful
Thanks so much for this little gold nugget Chandler, you've exposed me to the blindspots of a business partnership.
Glad to help!
this is great real business advice, thanks!
🙌
This is so helpful to me now because I’m about to the do it with someone because I feel I don’t feat in 😊this has really made my day….thank you so much ❤
One of your realest videos
Amazing. Really helped
Thank you for the information.
Glad you found it helpful!
Now this is some Blunt truth with concepts and concerns that founders really need to consider. Great post, I agree in your non partnership yet my question would be what are some key factors to pin point on how to make that decision? #savagestartups
I’m actually entering into a 50/50 partnership BUT we are having an attorney put together the partnership agreement and have already discussed how this could change if one of us isn’t holding up our end of the agreement. We also took a personality profile and ran credit checks before agreeing to partner. I’ve witnessed too many partnerships go south and know all about what not to do.
Thank you bro 👊🏿
Great advice thank you
Great video man! Totally agree!
Appreciate it! Biggest takeaway?
Thank you! I wish I saw this 3 years ago...
Great video very informative and for someone like me who wants to start my own business and thinking to partner with someone, im now thinking more before stepping into this huge decision. Thanks Great vid hope to see you in more of your videos! Love from the Philippines 🇵🇭
Glad to hear it was helpful! 🙌
@@ChandlerBoltOfficial woaaahhh thanks for the reply bro! Will watch your vids more! 👍🏼
I'm glad to hear that you give your employees a share of the profit. Kudos.
I have a video on that too :)
Chandler Bolt - The 7-Figure Principles Show Where is your video on profit shares?
thanks for sharing your wisdon!
I wish I would have seen this before I entered into a 50-50 partnership
:/
Keyword is believe
I'm in the situation at the very beginning of a partnership that you are describing. I am bringing most of the competencies for the business and will be operating it day to day, but the partner is bringing all of the capital. I am looking at "buying a piece of the assets he is bringing, but at most I would be able to cover/buy in 10-15% of the start up costs. I'm struggling with how to negotiate ownership. The business wouldn't really exist without his capital or my know-how and operational involvement. We kind of need each other, but in 2 or 3 years I could ostensibly be in a place to be self sufficient. Tricky situation.
What is the best decision for someone in a situation like this
What about if your doing all the tech work , building the site , shipping orders , operating customer service etc ... but the partner is investing 80% of the money to run the business and that being it???? How do you handle that???
I would pay them a % of interest on their money as a loan, or make them a minority partner in the business. As the one doing all the work in the business, I want to be the majority parter at least
Partnership out of insecurity, wow, this sounds like relationship advice too. Smart, I never thought of the psychology of why we partnership. 5 minutes ago I was saying I need a business partner After watching this video......naaaaa! Thank you!
🙌
50/50 Partnership was the worst thing I every did. You are do correct I took on a partner because I didn’t want to keep going on my own. Never ever do that.
Thanks bro.
This really opened up my decisions I’ve made. Thank you for this!
Great to hear! How so?
Me too lol ima do it alone with a manager and be a manager for my friend
I'm literally just getting out of a business partnership now and i'm so glad. I cannot stand my partner, he nitpicks everything and does half the work if that. Drives me insane. I'm so glad I'm moving on with my life
thanks! love from italy
Wise words.
Great video!
Thank you!
I have a unique situation. I agree with this sdvice. I have had one business partner. It went south. I didn't want to re partner again until now.
I have a situation where I met someone who wants to partner with me on part of my business (a subsidiary LLC) which is not my main business.
It would help me to partner with this person because I don't have the skills or the time or the money to get this part of my business going again without someone who wants to work on it.
I know I need to seek legal advice but was hoping you may have come across this situation. Basically I own 3 businesses that are inter related.
2 of the 3 are start ups that I'm struggling with to get going.
I have an offer of a partnership with someone who is willing to put the money in required to get it back up and running.
I have the main piece of equipment required to operate the business but it has been sitting for a few years.
I want to partner with her but I don't want to put in the sweat equity for that part of the business.
I want to help organize and have done involvement but I don't have the time to get it going.
I TOTALLY AGREE
Excellent
Good brother
Okay so boom. It’s my business and I’m feeling all the feels you described in the feeling: lonely, frightened, unsure etc. and I do in fact want a particular person on my team if not a whole partnership. How would I go about that?? I don’t have the money to hire someone yet, so I just thug it out and see it through on my own???
Alex Hormozi says to draw a profit sharing agreement with them, they don't have to be equity partners. They will take profit sharing from the input they provided. Lawyers can sort that out.
Hi, my son who is the singer song writer in a 50/50 business partnership of 2 yrs, ( he's not well long term, hence me asking)
They work on a percentage basis, but now the partner(admin only) is wanting to change to 85/15 % . My son does not agree and wants out, he wants to remove all of his songs from all platforms and end the business. Not much money appears to have been made but I feel suspicious. The partner does not agree to close the business.
Could my son ask to be bought out or just walk away. The musicians Union said his contract wasn't worth the paper etc. when they viewed it, any advice thanks.
I have a situation whereby my to be partner has links on how to transport the things but I'm more innovative
How do I deal with such a solution
I have more ideas on growing the business v
Damn right, no equal partnership. profit share
I don’t believe a partnership is 50/50, but we both must offer value.
I know my value is with technology and having time management to focus on my business after work.
I am also well spoken and my beauty will help me represent the company.
Information management is something I am definitely strong on.
Bless your soul 🤣🤣😂😭😭 troll award of the century
Hey question. I got a grant and using money to start the business. Hes going to train me with heavy haul skills in trucking but 0 money. Should I do a partnership with him to get skills and if so what % of partnership should I do?
Question for you. I want to form a partnership to do active stock trading in which I’m the general partner who does the trading with the other person’s capital. I’m trying to think of a way to avoid self employment tax while also having a practically guaranteed compensation. What I had in mind was to have a profit sharing structure where I get paid a percentage (lets say half) of the gains on profitable trades until a certain limit for the year is reached (such as $20k for example) and I would call that unearned income. This just applies to individual trades even if there’s a loss relative to the beginning of the year. What are your thoughts on that?
That’s above my pay grade. I’d consult with an accountant :)
We do 60/40 per job but the idea was hopes for them to bring me work as well. So two contractor businesses but if it’s a 2 person job person who sold job gets 60%
This is an amazing video. Some really great insight here. I am planning personally to start up a business in a few months, with a friend I intend to partner with, and this information really sounds fresh to me. We are in that situation where we know what each one can offer at the start of the business, and I feel it’s scary to start out alone, but once the business is on its feet, I feel many of these questions will be asked, but I don’t yet know which questions and how to ask them now! Any ideas?
Biggest feedback:
1. don't 50/50 partner
2. have a really great operating agreement at the start
If at all possible, I wouldn't partner out of insecurity and get a business partner. I'd try to start by myself first
Chandler Bolt - The 7-Figure Principles Show What are the best ways out of that 50/50 partnership? Because it feels, with an attempt to undervalue the partner at the start, the other partner could easily feel like it’s a power move. And we could easily start off the process with a yearning for power rather than focus on the business. Mine is my friend currently, so how can I bring it up, and how do I persuade him that it’s a good idea!?
@@kaganzikenbert8580 trust me. Do not 50/50 partner with a friend. Show him this video. I've seen this turn out wrong almost 100% of the time. Not saying it can't work. It's just not a good idea, especially at 50/50. As I say in this video, there's not such thing.
If you're considering a buy out, watch this video: ruclips.net/video/-ixNJNz5O-Q/видео.html
Hello I have a question I started a business 50/50 and we share equally in term of money investments but the company is not operational yet and I did 96% of the entire work but my business partner only did 5% but we are on 50/50 without business operations agreement. I’m frustrated but how can make her get less since she’s not do anything? And does it worth to buy the person out since the company have not made any profit
I have a question for you? I have a 50% 50% shareholders agreement and my partner lock me out of the company 10yrs ago and I didn't the money or the time to fight him, but I do know! Can I do anything to get my 50%, because I really was the one that got it doing millions of dollars?
What if I come up with the idea, I move it forward as far as marketing, getting interest, making connections, face of company and the other person physically makes the product? Also what if this person started out just making the product for me but wants to be 50/50. partner? He was just a prototype maker. I have money for supplies not labor. Advice on what kind of agreement is best ?
[Also curious]
I'm in a 50/50 partnership and my BP wants to leave, business is going strong but he is looking for an unrealistic amount. The unrealistic amount is technically half of the value of the company but we dont have anywhere near that amount available. The projection and valuation is based on what ifs and maybes over the next 4 or 5 years. We cant loan that amount and the repayment would last years and years. I'm not a willing buyer the sale is being forced - we are good mates and it is his business too so need some advice.
Ah man. Sorry to hear that! That's why it's important to have an operating agreement, but lesson learned. I didn't have one either which made buying out my biz partner much harder.
The valuation shouldn't be based on future value / what ifs. Instead, it should be based on a multiple of current EBITDA...or there's tons of other ways to price it.
If you're not a willing buyer, you have a ton of leverage (assuming there are no other willing buyers). Get creative with it and try to find creative terms that work for both of you to spread payment out....but the first thing I'd focus on is knocking down his unrealistic valuation. If he's highly motivated to get out, he'll likely be flexible on that. Hope this helps!
What if I am the one that does the least work but I came up with the idea what kind of share agreement should I
Ideas are a dime a dozen. Execution is everything. You should be a minority shareholder - definitely taking a significantly lower stake than the person executing the idea
@@ChandlerBoltOfficial hot DAMN. that's a truth that'll cut deep to every fellow creative spirit out there that believes "nobody else is doing this idea xyz". But truth nonetheless. Thank u.
thanks awesome video ,I am building a software company ,and I plan to include my friend as a co founder my friend has not done anything for the company yet(he will be the publicist for the company ). I am the programmer and I am building everything from scratch , I am also skeptical about 50/50 , how do you suggest I share ownership we plan to finance the company by ourselves
Don’t do it! Maybe 10% equity or so at most
@@ChandlerBoltOfficial thanks for the reply.this gives me a starting point!
@@ChandlerBoltOfficial hi m into sneaker cleaning business so this guy approach me to partner up with him his also into sneaker cleaning as well they now got a container ,they've partner up with some soccer players I on the other hand have not done much for the company m not sure If I want to do partnership because hey ...any advise ?
My business partner to be, wants a 50/50 split when I'm the one spending most of the money, doing most of the work, she wanted 50/50 because she's gonna contribute 50% on the ingredients for our product. 😩😩😩 please enlighten me more.
Run. Or negotiate a better deal
So… I started a company, the other party put the capital BUT, it was a loan and had to be paid back. And we’re 50/50 except I’ve done… every single thing. And I’m still going to them asking for final say.
Might be time to renegotiate
Do you have an attorney draft up the Op Agreement?
Yes. You can work from a template / agree on the basic terms beforehand
How about if person investing all capital and i have to just manage business? And 50/50
Maybe so. But I still like one of you having a higher equity amount for the reasons I talk about in the video
Good vid. I'm stuck i a 50/50 partnership with a biz partner who is useless and lazy
Thought about buying them out? I have another video on that
I wanted more substance to the issue.
I’m going into a 50/50 partnership with one of my childhood freinds, making me scared I might lose a freind haha nah we have great communication on everything I hope it all works out
Did you watch the video? I highly recommend against it
@@ChandlerBoltOfficial fax thanks to you am happy never have friends in business they should teach this stuff in school
Sir help me am depressed because of this I started a business on Facebook it blowed up my friend said he would help me out and he did I can't lie he talked to the customers and stuff but i agreed on a 50/50 because I didn't want to seem as a greedy person I was the one who
Meet the customers and sell the product I got some stuff from him to sell but the stuff I sold made way more money than his I just want to tell him start his own thing but he will say am a greedy ungrateful person and that I want all the money for myself and so much but he doesn't know how much I car about him I don't want our friendship to end over a stupid situation like this I know he's gonna look at me as a bad person but he's my closest friend right now it will hurt to loose him help me sir please
Who cares what he thinks! get out before you end up
Like that other guy who posted and is in his 60s and stressed out and drinking! Because he went in 50/50
@@gigip4727 bro thx I already did it
💯💯💯💯💯💯🙃
ha ha I did 50 50 but no time to be active in this business. seams making more money from what I do then invested now 2 years no profit no salary honeymoon is over don't feel like to communicate now moving forward finding a way to turn around the profit covid had been coursed a lot damage.
"A thug changes, the love changes and best friends becomes strangers. Word up" - Nasir Jones
help !!! ☺️😅😅 i have investor who can put 100% of the investment but i will be the one working on building the company he doesn’t know anything about real estate,how to do the % is 60/40 ok? 40 for me
Seems like a low amount of equity on your part. I’d ask for more
What if the partner is your girlfriend?
Absolutely not lol even more reason not to
51/49 is a good legal structure for us.
Just cheated by my partner and he took over my business
I only believe in pareto relationships.
Welcome to the world of small minded thinking.
lowkey marriage advice lol
Are you stoned?
Hes definitely stoned
Okay, i dont want to laugh, but I see why you would say that.
I don’t subscribe anyone easily. But yours videos made me to subscribe you.
Please provide your email for any business advices