A partnership can be really, really powerful. But it's REALLY hard. I haven't always gone into partnerships with eyes wide open. Now I use this due diligence before we do a deal with an operator/owner: ✔️ Background check ✔️ If they’ve ever raised capital, talk to their previous investors... ✔️ Review their business's reviews & BBB files ✔️ Attorneys review all contracts prior to doing the deal ✔️ Call and email 10 references Some other things to remember: → Partnerships are easy to get into and hard to get out of. Do you want to work side-by-side with this person in the same office for 10yrs? If not, don’t do the deal. → How does this person talk about & treat people they leave or disagree with? Start with the end in mind. Have a conversation about expectations for both sides, then document them. If it’s not signed, it never happened. → People change, expect it. Expect people to turn into the worst versions of themselves when money's involved. For many, money creates monsters. → Incentives drive actions. If they earn their money regardless of their performance, expect them to do less. → Most people won’t want it as bad as you. They won’t be willing to put in what it takes. Set the agreement accordingly.show more

Thanks, partnership came be massive leverage or headache. I like partnerships and joint ventures and have done a few . but hard to Cet good people for sure… A few other tips that gave helped me: -Clarity of roles and responsibilities - Only partner with complimentary skill sets (ex: I’ve partnered with scientists , technical developers, or manufacturers… I’m neither) - Milestones and performance incentives (cash and equity) - An out clause and specifically what triggers it, what the financial structure would be (for all parties)—yes to end in mind - if a biz is already established, just baseline and look to the future (but value based on history) - do a trial period if you’re uncertain Red flags: - previous bad partnerships - anyone that lies (little things turn into big)… ethics are key - bad “vibe”… gut decision like Codie says “if you don’t want to be working with them for 10yrs” There are enough opportunities out there not to take on bad partners

Only ship that won’t sail is a partnership - Dave Ramsey 😉

Good tips Codie. A few things that have helped me over the years: 1. Assess what each person brings in terms of knowledge, money, or time. Find a partner with complementary skills. A partnership is likely not worth it if both have the same skills. 3. Think long-term, and consider hiring instead of giving equity. 4. Before partnering, understand each other’s expectations. Establish clear goals from the start. 3. Ensure alignment on vision, values, and interests. Work with someone you're proud of, not just able to tolerate. 4. Document all agreements clearly to ensure fairness and eliminate ambiguity. Without a proper contract, you're gambling on the relationship. 5. Agree on decision-making processes and be willing to have upfront, hard conversations about expectations. 6. Build trust through open, regular communication. Keep each other updated on progress and potential issues. No secrets.

Partnerships can blindside you when you skip the prep. You could try LeadsApp to centralize references and keep deal notes tidy. That way you’ll spot misalignments early and avoid being stuck with someone who isn’t pulling their weight.

partnerships are pretty much a marriage. if there's a separation, it's not going to be pretty lol

Agree with your thoughts on partnerships. It's a challenging path, but with due diligence, it can turn into a powerful alliance. Checking backgrounds, previous investor interactions, business reviews and more...all vital steps. Thanks for sharing your experience and these valuable tips. It will certainly help many navigate partnerships more effectively.

Only partnered with people I know personally. There is a risk that you’ll lose the relationship if things go south. So far it’s been good. Fingers crossed.

One of the most important parts of a partnership agreement (or similar agreement) is planning for the divorce. If you or your lawyers haven't thought long and hard about termination, sale, change of control, and things like that, you're doing a bad job.

A great partnership can elevate your business, but a bad one can wreck everything. Do your homework before signing a deal. ✔️ Check backgrounds, reviews & contracts. ✔️ Talk to past investors & at least 10 references. A bad deal costs more than money. It hurts your reputation.

One of the biggest things I've learned about partnerships is to have 1,000% clarity on who handles what. Otherwise there'll be constant overstepping. Know what your role is and stick to it.

I would add...It never gets any better than the day you execute the deal with your partner. Optimism is high, excitement abound, ready to take over the world...that is the best it will get. Be understanding when things/people change. Get it in writing.

Worse than a divorce if it goes south.

Solid framework, Codie. Partnerships demand ruthless vetting—trust is earned, not assumed.

If it isn't signed it never happened... great rule

This is hugely important, people rush into partnerships that can tie up amounts of personal capital and social capital. Go slow to go fast here.

Funny. I used this exact criteria when choosing my (now) wife.