Let’s talk about the complexities of equal partnerships. They require careful consideration to avoid potential pitfalls.
Recently, I worked with two veterinarians eager to form a joint practice based on 50/50 owneship. I emphasized several critical challenges they would face:
1️⃣ Committing to regular, joint decision-making discussions is essential.
2️⃣ The decision-making process can slow significantly, posing risks of missed opportunities and stalling business growth.
3️⃣ Equal profit-sharing without equal contribution can sow seeds of resentment over time.
4️⃣ Resolving disagreements can be daunting and may lead to deadlock.
It’s important for 50/50 partners to understand these challenges and address tough questions upfront.
One of the ways their agreement can address some of those challenges is with a deadlock resolution process that they agree to in advance, while they’re still getting along. This may involve using a neutral third party to mediate deadlocks or establishing a buy-sell agreement for mutual exit options.
In any case, establishing a 50/50 partnership requires proactive planning and a comprehensive agreement.
Considering a partnership or navigating challenges in an existing one? Let's discuss how to structure your venture for long-term success.
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