Forums: Discussions for entrepreneurs and small business.

Hello Everyone...

I was hoping I could get some input from others about equal partnership, as it applies to decision making, is it a bad idea because of a potential impasse that could arise? If it is a bad idea, but both partners want equal decision making ability, what are some options? I was just tossing around an idea of seeing if there was such a thing as perhaps a small business mediation service that would have say 1% of the business, thus being able to make a decision on the information both sides would provide to them and ultimately be responsible then for making the final decision...

I was talking with my friend that just went into a partnership with another person and they did a 51/49, where my friend is the minority owner and is quite frustrated with the route that the business is taking... He said that their, the business's attorney, had said that you should never do a 50/50...

So anyway, I'd like to hear everyone's experience and/or opinion on this matter...

Thank You.

What this issue really speaks to is the need to have a shared vision when you start the business. Both partners must have the same hopes and dreams for the business otherwise disputes on business strategy are inevitable.

The business planning process is useful because it will necessitate some of this discussion, but even before the formal planning begins, both partners have to discuss the long term vision for the business and the strategy to reach those goals. Everyone needs to be on the same page from day one.