Picking the right business partner is only half the battle.
Going into business with someone is exciting. You’ve got a shared vision, big plans, and maybe even a celebratory dinner lined up. But before you start clinking glasses, take a moment to think: If things go sideways, do you have a plan?
Business partnerships, like marriages, start with high hopes—but they don’t always end that way. One day, you and your partner are in sync, growing your company together. The next, you’re locked in a standoff over missed payments, uneven workloads, or clashing priorities. And without the right protections in place, a messy partnership breakup can cost you more than just stress—it can cost you your business.
A strong business partnership isn’t built on trust alone—it’s built on clear agreements, accountability, and a plan for when disagreements inevitably happen. Here’s how to safeguard yourself while still maintaining a strong, functional relationship with your business partner.
Contents |
| Set the Ground Rules Before You Start |
| Make Expectations (and Consequences) Crystal Clear |
| Have the Right Support System in Place |
| Plan for the Worst—Without Sabotaging the Partnership |
Think of a partnership agreement as the blueprint for your business relationship—it’s what keeps everything running smoothly and prevents misunderstandings from turning into full-blown disputes. A good agreement prevents future arguments by spelling out:
Without a clear contract, you’re relying on verbal agreements and good intentions—two things that won’t hold up when tensions rise.
| 🤝 Hint: If you're an LLC, your Operating Agreement should probably include all of this. |
Setting expectations is one thing—making sure they’re enforced is another. Your agreement should include performance expectations and accountability measures to avoid one partner slacking while the other carries the weight.
Bill and Sally start a business together and agree to put in 40 hours a week each. A few months in, Sally notices Bill is spending a little too much time at the golf course, and his tasks (like paying vendors) are falling behind.
How could Bill and Sally have thought ahead? Their partnership agreement should have included:
By setting up these safeguards early, you’re not just protecting yourself—you’re keeping the partnership fair, balanced, and healthy.
Even the strongest partnerships hit bumps in the road. Having external resources in your corner ensures small issues don’t turn into catastrophic conflicts.
Think of these resources as the safety net that keeps you from free-falling into financial chaos if something goes wrong.
Let’s be real—no one goes into a business partnership expecting it to implode, but plenty of partnerships do. The best way to keep your relationship intact is to prepare for the worst before problems arise.
Here’s how you can safeguard your business without making your partner feel like you don’t trust them:
At the end of the day, partnerships don’t fail because of one bad moment—they fail because of a series of unresolved issues. Catch them early, and your business (and your friendship) will be much better off.
Starting a business with someone you trust can be an exciting opportunity, but without the right safeguards, it can also be a financial disaster waiting to happen.
And remember—business partnerships are a lot like marriages. If you mix money with family or friends, be prepared for some rocky moments. But with the right planning, you can build a partnership that thrives without ruining relationships along the way.
If you're entering a business partnership, don’t leave anything to chance. Get expert guidance on structuring your partnership agreement—schedule a consultation with DiMercurio Advisors today.