Tuesday, December 29, 2009

In a Business Partnership Playing It Safe is a Big Risk

If each partner’s individual commitment to the business is less than 100%, then the partnership and the business are on shaky ground. The problem stems from thinking you have made the 100% commitment, but in fact you haven't. You cannot possibly make a complete commitment to a partnership until the partners have outlined in detail what that commitment entails. It’s big! The 100% commitment requires that you will see things through no matter how rough it gets.

What do you need to address in order to make the commitment solid? The answer is in two areas: Your character, and a solid business plan.

Character

What do you know about yourself and your partner(s) in terms of how you each handle things under dire circumstances? This requires a deep sense of honesty with yourself and each other.

You must have conversations about how you have handled things in your past. Were there other partnerships? Alliances? What did you do or would you now do differently to make it work before concluding that a split is the only way? If a split was necessary how did you handle it? Do any of you have a pattern of not finishing things or keeping your word? Start by analyzing yourself. “When the going gets tough the tough go shopping” is the joke, but what do YOU do when the going gets tough?

A history of broken commitments does not have to be the end of it all if you have learned from those situations. Some relationships are better ended What is important are the lessons you learn about yourself, about relationships and about how you stay the course.

Business Plan

Why is the business plan needed in order to successfully establish the 100% commitment? If partners have not talked in the greatest details of how the business will run and what each person's job description is and then written all of it into a business plan, the commitment cannot be considered solid.

Many times people begin a business on the basis of what they think is a good idea and because they have complementary skills. They skip talking about the nitty-gritty details about who will do what and who will cover what they don’t each do. They begin to work and, though things may seem to be running smoothly at first, shortly thereafter, problems arise. The problems often arise when one partner begins to feel like they are doing much more than the other and is not being recognized for it. Sometimes both or all partners feel this way.

100% commitment means you don't have the tiniest of safeguards that allow you to have one foot out the door just in case. Playing it safe for yourself is a big risk for the business and the partnership.

Dale and Harry have had a long term successful partnership. Each separately experienced a prior failed partnership with someone else. I interviewed them to find out what they view as the reasons for their success. You can hear what they have to say about commitment to the business and each other. Listen to me interview them. They are the first of 3 successful partnership mp3 interviews you will receive when you sign up for my FREE partnership assessment at http://www.businesspartnershipsuccess.com

You will also receive two additional interviews of successful partnerships, one a married couple. You can learn a lot from these people who graciously share their stories.

Here are some additional tools I suggest for you:

If you are considering a partnership or would like to go back and do some of the thoughtful work you skipped before becoming partners get the 15 very important questions to ask yourself and your partner for only $14.95.
www.coachingforyournextlevel.com .... click on business partners in the left menu.

Invest in yourselves by purchasing the Blueprint package including the “What If” Scenarios, the 7C's Danger Signs to Avoid and other bonuses. See the description at www.businesspartnershipsolutions.com. At an introductory price of $497 you will get a very worthwhile return on this small investment.

If you are a coach to entrepreneurs who may be in a partnership or considering one, you can use these tools in your process of coaching them. More tools to come....

You have made a serious investment, both financially and emotionally to create this business. Do everything you can to make it a joyful success.

Feel free to email your comments and questions. info@businesspartnershipsolutions.com

Wednesday, December 23, 2009

Your Marriage is a Business Partnership Too

by Dorene Lehavi, PhD

These are stressing times for far too many people and when money is the central issue, the lack of it, the fear of losing it, can destroy a marriage if you let it. On the other hand, it could do just the opposite by bringing the two of you closer together and strengthen your marriage as only such hard times can do. It's truly a choice for you to make.

Remember a few things: Historically, marriage was a business arrangement. We have allowed the idea of romance to define the foundation of marriage. When you look closely, however, even today it may not sound romantic, but marriage is still a business arrangement. The better news is, if done properly love grows from this arrangement. This love is far more stable, meaningful, and supportive than the idea of falling in and out of love...romantically.

Marriage is a business no matter what the set up is even if you haven't been thinking of it that way. There is always the notion of division of labor even if you haven't addressed it as such. Perhaps one of you stays home to fulfill the jobs on site and the other brings home a salary to buy what the family unit needs. Perhaps both of you work outside of the home and pay others to do some of the jobs needed at home. There are a variety of other possible arrangements that you may have adapted for your marriage.

Ok, so now the money is in jeopardy because of job loss...bad investments, credit card debt or something else and you are fighting, tension rules, and maybe you stopped talking altogether. You no longer behave like a couple who love each other and if there are children they are picking it up and coming to their own conclusions about what is happening...usually including themselves somewhere in the picture as to being to blame for the strife.

Let me suggest an opposite solution. Now is the time to remember those vows "for better or for worse" and the reasons you chose each other in the first place. Now is the time to come together as business people committed to success and readjust your business plan. If you need outside advice, get it. There are downturns in everyone's life and business. Figure out ways to ride out the storm together as a couple and as a family. Be absolutely determined here.

Other couples are making adjustments. Get ideas from them if need be. Be open and talk to others. Get over feeling ashamed. We, as a community and a country are all in this together. Find friends and support groups, but remember that your first priority is for you to be an unbreakable unit and support to each other.

As a couple have regular but limited meetings with each other about new strategies for your marital business. Designate an appropriate place where you hold these meetings. Not your bedroom...A home office is ideal. Make sure you meet at least once a week, maybe twice for an hour and when the hour is over, you stop the discussion until the next meeting.

Make sure your children know that you love them and will always be there to support them and the family is still the family. It's ok to tell them that right now these are hard times, but that you will get through them together. And that it is ok and common for all families to go through periods of hard times. If your children are older you may ask them, with limits, for their input. For example, they may volunteer to limit the use of some of their costly tech devices for now. It is not their responsibility to come up with solutions and don't make it theirs. However, you can ask for ideas and you can make new rules for them in a loving supportive manner. Of course all of this talk with children has to be age appropriate.

Most importantly spend couple time with each other every day. There are a lot of free ways to do that. Discover them. Most of all hugs are free. Do a lot of that in front of the children and with them.

If you stop the blame game and get on the same side when this period is over you will find that you have become a much richer couple and family in all the important ways. Your children's experience in this period will serve them well throughout their lives.

Tuesday, December 22, 2009

"WHY IS A 49/51 SPLIT A GOOD IDEA?"

By Dorene Lehavi, PhD.

Especially now, in this uncertain economy and job market, many people are turning to creating their own businesses and many of them are joining with a partner. There are a plethora of good reasons to want a partner. Besides the camaraderie, there is shared risk, more heads to be creative, shared responsibility, complementary skill sets, etc. However, many people who do walk into a partnership ignore doing the basics and find themselves in trouble down the line. That is why more partnerships fail than succeed.

I am passionate about helping businesses succeed. As a former therapist and in my coaching practice, I have learned that it is more often than not, a breakdown of the relationship between the partners that causes the breakup.

This can be avoided by making some important decisions at the outset and writing them down. More importantly, the outcome of these conversations is learning to communicate, openly, honestly and ongoing.

Connecting with the appropriate business partner is very similar to choosing the right marital partner. In fact, it is likely that you will spend more hours with your business partner than your spouse. It is vital to have compatible personalities, values, and a vision of life together for the short and long run.

I guide my clients and others who invest in the helpful tools I created to talk about as many “What If” issues they can think of, and to write down the solutions they prefer and to revisit them at least once a year. One of the most important decisions I encourage them to make at the outset is who will have the deciding vote when there is an impasse or disagreement. That's where the 49/51 comes in.

This division is separate from the financial split. The finances can be split 50/50, 60/40 or any other numbers that are agreed upon. However, a disagreement has to be decided upon by someone. In evaluating the different skill set of the partners, one will hopefully be stronger with actual management. That person, may be chosen to be the decision maker with 51% where the need arises. If, however, the partners do not want to create this split, they may decide to choose an outsider to be the tie-breaker or decision maker in a stalemate.

This person should not be a family member, friend or any person with a vested interest. Name a neutral party. Have all of this written prior to signing the partnership agreement.

The truth is partners can create any solution they want to as long as they don't wait for the crisis to happen before the decision is made. There are a number of very important additional decisions to be discussed and made at the outset. If these are done, the partnership will be off to a good start. Far too many ignore this phase and walk into trouble with no pre thought out solution.

Monday, December 21, 2009

Learn From A Butterfly to Conquer Fear


By Dorene Lehavi, PhD.

I heard what could have been little mice scampering on the roof of my art studio, but there are no little mice on my roof. I looked up and flapping against the light fixture was a giant butterfly. I never had seen one so big. It's wing span was about 7or 8". It was a stunning shade of muted yellow gold with dark brown decorative lines running through it's wings. Where is my camera when I need it?

I would have loved to keep it, but that didn't seem fair or practical. So I shut off the light and tried to direct it to the door leading to my garden which I opened and moved back and forth to get it's attention. It didn't take my invitation to leave the easy way but instead flew into what looks like a window but doesn't open. It frantically kept butting itself into the glass but of course nothing happened. It seemed to be working itself into a frenzy of hysteria. Do butterflies get hysterical?

I wanted to help the poor beauty, so I grabbed a piece of corrugated cardboard and pushed it against the window under the butterfly. I began to speak to it in a soft reassuring voice, telling it that I wanted to help and if it would just trust me and mount the vehicle I am providing I would see it out to safety. After about a minute of my soothing voice, it did as I suggested. It mounted the transportation I was providing and I carried it to the open door and released it to my garden never to see it again. When the butterfly stopped repeating its futile attempts it was able to find a solution that worked.

It was an amazing beauty. I looked online and discovered that butterflies can actually be as large as 12".

"You May Be in a Business Partnership and Not Even Know It"


By Dorene Lehavi, PhD.

A friend of mine, some years ago, found himself in a difficult business situation. He was a Pilates coach, who rented space in a gym. In the room that was designated as his he placed his equipment, which included two reformers that he used to train his clients.

After months of being there he noticed that his machines were being used by other trainers in the gym for some of their clients when he was not there. This was disturbing on many accounts. First, it was a breach of trust. There was no lock on his door, but it clearly was the space for which he alone paid the rent. More importantly, he would be liable if someone hurt themselves on his machines. Third, damage could also occur to his machines. Fourth, only certified Pilates trainers know how to use the machines properly.

Clearly this was not a partnership in the strictest sense, but what needed to have happened between him and the owner is similar to what partnerships should do when they are entering into an agreement. That is to talk about every possible “what if “ scenario, before they sign an agreement. And, of course, the solutions they agreed upon should be included in the written agreement.

I always advise partners to see a lawyer to craft their agreement, but I advise them to wait until they have discussed these scenarios so their decisions and solutions can be included. Boilerplate agreements should serve ONLY as a guide. You want to make sure that your agreement is unique to you and your business.

Most people take so much for granted upon entering a business relationship with someone else that they inevitably run into trouble. Even when you know each other well, don't assume you know where the other person stands on anything. There are many other situations that should be treated as a bonafide business partnership. People ask me frequently if joint ventures are partnerships. Such arrangements are usually that two people with separate businesses collaborate on a time limited and well-defined project. And yes, they should be treated as partnerships. A written agreement is needed no matter how short-term or small the project is. The decisions need to be about how ownership is going to be divided? Is there a description of who does what? How are the expenses and profits divided? Does one person feel they are doing an unfair amount of the work? What are the steps to create the project and what will be the conclusion? How will the partnering end? Without having discussed these first, and coming to decisions that satisfy both partners, they may be headed for trouble.

At a wellness program I recently attended, I heard a nurse note that extremely ill people often ask her “What could I have done to prevent this?”. It reminded me of all the partnerships who come to me when things have deteriorated between them and they are either in court or one step away from it. There is a great deal that can be done to prevent the worse from happening.

Because I cannot coach everyone personally, I have created a number of tools to help partnerships succeed. Take advantage of them. Whatever investment you make up front will be miniscule compared to the cost of a broken partnership later.

Here are some tools I suggest for you:

FREE partnership assessment with 3 FREE bonus mp3 downloads of interviews of successful partnerships. One of them is with a married couple who are business partners. Learn their secrets and adopt the ones that will work for you. Get this FREE package at www.businesspartnershipsuccess.com

If you are considering a partnership or would like to go back and do some of the thoughtful work you skipped before becoming partners get the 15 very important questions to ask yourself and your partner for only $14.95. www.coachingforyournextlevel.com ....click on business partners in the left menu.

Invest in yourselves by purchasing the Blueprint package including the “What If” Scenarios, the 7C's Danger Signs to Avoid and other bonuses. See the description at www.businesspartnershipsolutions.com. At an introductory price of $497 you will get a very worthwhile return on this small investment.

More tools to come.... You have made a serious investment, both financially and emotionally to create this business. Do everything you can to make it a joyful success. Feel free to email your comments and questions.info@businesspartnershipsolutions.com


Thursday, December 17, 2009

7 Guidelines to Choosing the Right Partner

Get to know each other well. Share how you each have handled business situations in the past, what family obligations you have, howyou each handle personal finances, including level of debt owed, and much more. This is not the time to hold back or be shy.

Trust, respect and likeability are vitally important. These traits will evolve as you get to know each other. Do not commit to the partnership until you have reached a level of mutual respect, trust and friendship.

Commit to open and honest communication. This is the only way to maintain and grow the relationship once you’ve made the commitment to partner.

Clarify each partner’s role and job description and record the results. More relationships get into trouble when partners blame each other for doing less than they said they would initially. Others may do the opposite by overstepping into each other’s territory. Your written job descriptions will act as reference and a checkpoint to prevent these from happening.

Plan in advance how disagreements will be resolved. There are many options. The person stronger in one area than the other might be deemed the decision maker in that arena. A third party might be engaged in a standoff. Any other solution, including a coin toss, is ok as long as it is agreed to by both partners.

Meet regularly on a scheduled basis to discuss ongoing and new issues. Even though you are busy, it is vital that communication occur on a daily or bi-weekly basis, even if only for 5 or 10 minutes. Once a week is the bare minimum.

Enjoy the fun of being in a partnership. Remember that you and your partner are on the same side of the table with the same goal and vision. Develop your friendship and be sure to include laughter and good humor.

Because I cannot coach everyone personally, I have created a number of tools to help partnerships succeed. Take advantage of them. Whatever investment you make up front will be miniscule compared to the cost of a broken partnership later.

Here are some tools I suggest for you:

FREE partnership assessment with 3 FREE bonus mp3 downloads of interviews of successful partnerships. One of them is with a married couple who are business partners. Learn their secrets and adopt the ones that will work for you. Get this FREE package at www.businesspartnershipsuccess.com. If you are considering a partnership or would like to go back and do some of the thoughtful work you skipped before becoming partners get the 15 very important questions to ask yourself and your partner for only $14.95. www.coachingforyournextlevel.com .... click on business partners in the left menu.

Invest in yourselves by purchasing the Blueprint package including the “What If” Scenarios, the 7C's Danger Signs to Avoid and other bonuses. See the description at www.businesspartnershipsolutions.com. At an introductory price of $497 you will get a very worthwhile return on this small investment.

As a coach to entrepreneurs who may be in a partnership or considering one, you can use these tools in your process of coaching them to avoid the pitfalls.

More tools to come.... You have made a serious investment, both financially and emotionally to create this business. Do everything you can to make it a joyful success. Feel free to email your comments and questions. info@businesspartnershipsolutions.com

7 Advantages to Being In A Business Partnership

While many entrepreneurs are sole proprietors, consider another option. The right business partnership offers a number of advantages to everyone involved.

The feeling of isolation is over. As a sole proprietor, business owners are often alone in the decision-making, strategizing and creative processes. Having the right partner to bounce ideas off of alleviates the need to go it alone.

Partnering with the right person expands creativity and possibilities for broader offerings and services. With each individual bringing their unique strengths to the table, new possibilities become feasible.

Risks and responsibilities are shared. Having the right partner helps shoulder the weight and lightens

Personal growth flourishes through the challenges of the partner’s relationship. Creating a successful partnership requires knowing oneself and having the ability to openly and honestly communicate and listen well.

Someone else can carry the ball when a partner attends to a personal situation. Sole proprietors often need to put their businesses on hold when personal issues arise.

The division of labor reflects the strengths of each partner. Sole proprietors, are left to do all the work themselves, regardless of their own personal strengths. Having a partner allows them to focus on the work that is best suited to them.

Bottom line increases. Clients will see the increased value of broader offerings from this newly expanded service.

While the right partnership offers many benefits, the wrong partnership can end painfully and at great expense.