Do you need a Partner?

Business Partners

Donald Trump said that if not for a prenuptial agreement, his divorce would have buried him in the late 1980s.

A business divorce can also bury you. You are not necessarily going to have a prenup agreement for your business partner, but if you do take on partners, here’s what I recommend:

· Take on business partners only on a deal-by-deal basis.

· Use partners for money, credit or to acquire properties.

· Never give anyone authority over your money.

· Make decisions on a financial basis first.

· Make sure you, your partner and partner’s spouse share the same goals.

People ask me, “Should I have a partner in business?” And my answer is, “Should you get married?” Because both of those require a commitment.

No one really knows what a partner is going to be like until you hit tough times and you disagree. You have to create assurances that you are both going to be solvent and liquid.

Use money or credit partners, but only on a deal-by-deal basis. It’s easy enough to get out of one deal if you have to, but it is much more difficult to get out of 100 deals with a partner.

Make sure that you and your partner share the same goals and work ethics. (Here in the book I talk about one of my early partnership deals! I also address how to do business with family, spouses and spouses of partners.) Most importantly, I talk about how to protect yourself. This section will be available when the book is released!)

…if you go into business with family, the same rules apply.

If you are married to your business partner, make sure you define clear roles and boundaries in your business and marriage. In my business, I am the president and my wife is vice-president, so I have final say. She trusts my decisions based on my experience. But in our marriage, we are equal partners and consult each other on decisions and problem solving.

Do you need a Partner?

Business Partners

Donald Trump said that if not for a prenuptial agreement, his divorce would have buried him in the late 1980s.

A business divorce can also bury you. You are not necessarily going to have a prenup agreement for your business partner, but if you do take on partners, here’s what I recommend:

· Take on business partners only on a deal-by-deal basis.

· Use partners for money, credit or to acquire properties.

· Never give anyone authority over your money.

· Make decisions on a financial basis first.

· Make sure you, your partner and partner’s spouse share the same goals.

People ask me, “Should I have a partner in business?” And my answer is, “Should you get married?” Because both of those require a commitment.

No one really knows what a partner is going to be like until you hit tough times and you disagree. You have to create assurances that you are both going to be solvent and liquid.

Use money or credit partners, but only on a deal-by-deal basis. It’s easy enough to get out of one deal if you have to, but it is much more difficult to get out of 100 deals with a partner.

Make sure that you and your partner share the same goals and work ethics. (Here in the book I talk about one of my early partnership deals! I also address how to do business with family, spouses and spouses of partners.) Most importantly, I talk about how to protect yourself. This section will be available when the book is released!)

…if you go into business with family, the same rules apply.

If you are married to your business partner, make sure you define clear roles and boundaries in your business and marriage. In my business, I am the president and my wife is vice-president, so I have final say. She trusts my decisions based on my experience. But in our marriage, we are equal partners and consult each other on decisions and problem solving.