©2011 Business Success Center, 1

Working TogetherWithout Killing Each other

Presenter: Jan Triplett, CEO Business Success Center

©2011 Business Success Center, 2

Partners ShareResponsibility

Liability

Control

In order to create the future of the business together or with shared agreement

©2011 Business Success Center, 3

Family Businesses Large & Small

Large

Samsung

Hyundai

LG

Trump Organization — Don & the kids

Golfsmith & Whole Foods before going public

Smaller, Local

Hastings

Chez Zee

Hayes Software

BSC

Any business owned by someone who’s married & lives in a community property state

©2011 Business Success Center, 4

What can happen.

Translation: “Father, founder of the company, son is rich, grandson is poor.”

• The founder works and builds a business• The son takes it over and is poorly prepared to manage and make it grow but enjoys the wealth• The grandson inherits a dead business with an empty bank account.

Padre noble, hijo rico, nieto pobre.

©2011 Business Success Center, 5

From the wonderful people who brought us pizza

Partnership laws originated in the Middle Ages from Italian merchants. • US Partnership Act (1890)

• Uniform Partnership Act (UPA, 1914) • Uniform Limited Partnership Act 1916

©2011 Business Success Center, 6

Partners ContributeMoney

Property

Labor

Skills

And argue about all of these, too!

©2011 Business Success Center, 7

Why Problems AriseDifferent goals

Different styles

Different ethics

Different approach

Different priorities

©2011 Business Success Center, 8

When Problems AriseChoosing a Partner

Working with a Partner

At business crossroads: expansion, contraction, dissolution, cashing out

©2011 Business Success Center, 9

Family Business ProblemsBusiness’ purpose, system, goals & timelines are

not Aligned with the goals of a family memberCompatible with the family as a group In sync between family members

Hard to solve yourself. An independent advisor can see what’s happening and move the members through the problems while keeping the business on course.

©2011 Business Success Center, 10

When Good Partnerships Go Bad

Financial Partner/ Sweat Equity Only Partner

Spouses, siblings, friends

Hush, hush meetings – uninvited consequences

Similar skills & abilities

Small vs. large org experience

Two bosses too many

Your issues?

©2011 Business Success Center, 11

Best Partner PracticesAvoiding Problems

Best Partner Profile™

Compatible Vision & Desired Outcome

Agreement on transference strategy & timeline

Systematic approach

Job descriptions for all

Partnership agreement in place

Open communication

Reducing Problems

Identify areas of difference or disagreement

Set up rules of engagement/ how to fight fair

Abide by rules, adjust as necessary

Support each other; avoid one-upsmanship

©2011 Business Success Center, 12

Stuff Happens … Conflict ID

Characteristics— why is this a problem?

Manifestations — what happens when this conflict happens

Causes — triggers

Brainstorm Solution OptionsArrive at Agreed Upon Ground Rules

©2011 Business Success Center, 13

Vision — the Place to StartRank for you & your partner

Good working conditions

Time off for family or self

Personal growth

Tactful corrections

Good wages

Balancing life and work

In charge

Loyalty

Appreciation of Work

Honesty

Staying focused

Profitability

©2011 Business Success Center, 14

CommunicationHow is this done?

Decisions

New Information

Problems

Future Plans

Regularly

Immediately

Whenever

In secret

©2011 Business Success Center, 15

Leadership…Who’s in Charge of What

• Who decides• Who acts• Who authorizes• Who approves

On what basis?This calls for job descriptions, policies & procedures

©2011 Business Success Center, 16

Especially for Partners

Worth Reading:• Dance Lessons, Chip Bell & Heather Shea• The Small Business Partnership Kit, Robert L. Davidson, III

17

Here’s to your

success!Jan Triplett

triplett@runitright.biz

Jan TriplettBlog:

http://www.ownersview.com

Sales, Marketing & Financial Management Services

©2011 Business Success Center,

March 11, 2011