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Does anyone run their PC business with a friend (partnership)? I was not considering doing this, however, a friend of mine has been listening to my "dream" and thinks it would be fun to work with me. #1 - How many of you do this, or considered this, and what are the pros & cons? #2 - How could I delicately tell her that, though I respect & enjoy our friendship, I wasn't considering a "partner" in my PC business?

Thanks for your thoughts & input!
Gina

IMHO, a "partnership" is slightly more "invasive" than a marriage! Especially where "partners" have equal authority.

Unless you know EVERYTHING about your prospective partner, and even then, you need to draft a partnership agreement that defines every aspect of the business, in detail. This includes (but not limited to):

• Partner's investment(s) and shares of income and expenses
• How do you resolve conflicts when there is a disagreement?
• How can one partner leave the partnership (buy-sell agreement with valuation method)?
• What happens if a partner becomes incapacitated for whatever reason?
• Who keeps the books?
• What authority does one partner have to commit the other, especially financially?

If you do want to work with someone else, you might consider some other business relationship, say an LLC, or even a Sub S or regular corporation. Then again, these cost $$$ to set up.

Partnerships definitely can work, but they also can go sour very quickly.

Also, partnerships with "friends" may start out as "friends", but provide many opportunities to find reasons to no longer be "friends"

Thanks Chef! Yes, she has me a tad nervous. She's too "eager" to join me, and I told her I want to join APPCA first, learn all I can, and take baby steps in my business. I don't think she's really being realistic, just too impulsive and child-like in her enthusiasm. She doesn't quite understand why I'm taking the steps I'm taking. Reality check, on her part, needs to be made I'm afraid. I didn't want to sour a friendship either.

I really appreciate how you spelled that out. Thanks so much!

Gina

Gina,

If this friend pushes you further, (which, based on your comments, she probably will), ask her to write our her goals, why she wants to do this, her passion, etc.

In order for ANY good relationship to work, you both really need to be focused in the same direction. Not to say that you can't have your own opinions, etc., but if you don't have the same VALUES, it will never work.

In my nearly 25 years in my own business (not PC), I have seen many, many partnerships/businesses fail because the parties didn't share the same level of comittment.

And I know what Pete is saying regarding a partnership being like a marriage and then some. My business partner ended up becoming my husband after 15 years!

Best of luck during your discovery process.

Kathy
Grayslake IL
www.chefplease.com

Honestly, I would re-evaluate this venture. You said you never considered having a partner, then why now? I would definitely write down pros & cons...also have your friend do the same. This business is not a pipe dream for you...and for one, I would not worry about souring a friendship should you decide not to take on any partner. Follow your gut...you said your friend is impulsive...this lets me believe that you will be doing most or worse yet ALL of the work, but sharing the money...and what happens when reality sets in (for both of you) about being partners? Now it would be different if you two had already planned on owning a PC business together. Some people "glamourize" or fantasize about being a business owner. It's hard work and not to be entered into lightly, just like a marriage. Your friend might think that joining you as a partner is the easiest way to be a "business owner". This can create problems...IMHO it is just like loaning money...with most of the times a fallen out occurs. Also, remember too, that both of you as partners, would need to increase your client load, so that you BOTH could make a living at this.

Got to think about costs as well. Training materials, website, webhost, domain name, DBA, insurance, serve safe course for both of you, business cards/brochures, etc. I would make sure that ALL money spent on getting the business up & running is split 50/50....along with a legal binding contract spelling out the "what ifs"...what if they want to bail? What if you want to bail? etc etc exactly what Pete said. And Kathy hit the nail on the head of having the same work values, drive etc.

If you decided to become partners...I would, if I were you, insist that the friend join the same association you join. This way she will have the proper training materials, and also be privy to the members forum where the information is absolutely invaluable. Well, I think a training package can be purchased as partners, you will need to call Chef Candy.

Bottom line, make sure you don't regret having or not having a partner. If you decide against the partnership and this friend is truly your friend, you will not sour the friendship by saying that you appreciate her enthusiasm of partnering up, but you prefer to go it alone and would appreciate moral support.

Good luck, and let us know how it goes. We will hopefully see you soon on the inside.

All good points! Thanks for all your honesty & insight. My husband wasn't keen on the idea either.

I'd end up doing all the work (business-wise for sure). I've been doing all the homework so far, and signing up with APPCA, so naturally, I'm the thinker & planner here. She wants to quit her job, so I must look like an "easy solution".

Happy Holidays everyone! Even though I'm new here, I already feel like the "little sister"!

Gina

Gina...if your hubby was concerned, probably good reason to be. Remember, men think very logically while women sometimes allow emotions/feelings to interfere with logic. Your friend must hate her current job, and yeah, thinking you're the easy solution. Not a way to start off your business. Have a great Christmas and what a way to start your new year!