Business Partnership CentralBusiness Partnership Centralhttp://www.askthebusinesslawyer.com/blog/2009-06-26T04:56:39ZSquarespaceThe Delicate (and Often Lost) Art of Negotiationhttp://www.askthebusinesslawyer.com/blog/2009/6/25/the-delicate-and-often-lost-art-of-negotiation.htmlNina Kaufman2009-06-25T22:25:19Z2009-06-25T22:25:19Z"Do the ends justify the means?" is an age-old philosophical query. Melissa Thoma (a sister WomenEntrepreneur.com columnist, I might add), poses a similar question in her article, "Master the Art of Partner Negotiation." Is the outcome of a negotiation as important as the process?

"Couples get so caught up in claiming their space on the lifeboat that they are willing to win at each other's expense," Thoma writes.  "Only problem is, that parting shot just put a hole in the lifeboat they're sharing."

The same is often true of business parnterships.  I've seen buiusness parnters "loaded for bear" and needing to speak through intermediaries (attorneys, other employees) because they can't  "Get to Yes."  Imagine the extra layers of complexity (and delicacy needed) when your business partner is your spouse/significant other! 

 

 

]]>When Only the Lawyers Get Richhttp://www.askthebusinesslawyer.com/blog/2009/6/17/when-only-the-lawyers-get-rich.htmlNina Kaufman2009-06-17T16:00:40Z2009-06-17T16:00:40ZFrom the Department of Cautionary Tales comes this instructive story from Richard Fox on the Kauffman (sadly, no relation -- not even spelled the same way) Foundation's Entrepreneurship site. 

It's the story of a partnership turned very ugly.  Betrayed by the partner who tried to sell out from under him on the day of his father's funeral, enduring eight years of litigation (how did they afford it when the company was only making $5 million per year?), legislation slithering through the halls of local government . . . it reads like a Scott Turow novel.

Yes, there is a happy ending (hooray!), and Fox points out the valuable lessons he learned as a result of enduring this near-decade-long nightmare.

Thanks to Rush Nigut (again) for pointing me to the story.

]]>The partnering "trend"http://www.askthebusinesslawyer.com/blog/2009/6/10/the-partnering-trend.htmlNina Kaufman2009-06-10T16:00:04Z2009-06-10T16:00:04ZIf it's been reported The New York Times, it must be official.  :-)  A "trend" has been spotted of larger corporations reaching out to smaller ones for innovative products and services.

As noted by Anita Campbell in her Small Business Trends blog,

As a small business you can get much broader market reach through partnering than you can on your own, provided you are willing to move at the pace of the larger company. Also, with access to free resources to build your business, you can grow your business and run it smarter.

So true.  Two things to keep in mind, though. 

First, your larger partner will likely present you with an agreement that's either in microscopic print or 42 pages long.  They can contain terms that could bite you if you're not savvy about protecting yourself (for example, who will own the intellectual property rights?) . . . and you'd better believe that the 800-pound gorilla will want to protect its hide.  So make sure you have a qualified attorney review the document and explain the latent risks of the deal to you.

Second, 800-pound gorillas don't always pay timely.  Your smaller clients may pay you within 30 days, but larger ones may take their time . . . because they can.  Make sure you don't overextend your resources.  Have enough on hand to weather the possibility of late payment.

]]>"Because Death Is Inevitable"http://www.askthebusinesslawyer.com/blog/2009/6/3/because-death-is-inevitable.htmlNina Kaufman2009-06-03T16:00:36Z2009-06-03T16:00:36ZA lawyer colleague of mine, George Bischof, is part of a networking group that encourages you to end your elevator pitch with a tagline.   Being a trusts & estates specialist, his is something like, "You will die," or "Because death is inevitable."  George is not a morbid guy by any means -- he's just trying to impress upon people the need to do planning now because you never know exactly when your time will come.

And yes, as you're asking, this is relevant to business partnerships.  In fact, it was Rush Nigut, in his Rush on Business blog, who sparked this train of thought for me in his post on Partnership Agreements. Rush noted that "reality dictates that it is not a matter of IF your partnership will end, but rather WHEN your partnership will end." 

And it will.  Whether its death that parts you, or a radical change in your life circumstances (47 and pregnant with twins!), or you simply grow into wanting different strategic directions for your company and career (as was the case with my business partner) . . . your mutual ownership of the company will end.  Somehow. 

So give your company a fighting chance by reducing the potential for fighting.  Put together your partnership agreement while you're both alive and cooperative.

 

]]>Partnership Q&A: Merging businesses in different countrieshttp://www.askthebusinesslawyer.com/blog/2009/5/27/partnership-qa-merging-businesses-in-different-countries.htmlNina Kaufman2009-05-27T16:00:27Z2009-05-27T16:00:27ZQ.:

How can the owners of a company merge three separate businesses located in three different countries?  Each business is owned and operated by the same people.

Read on to find out . . . .

]]>Partnership Q&A: What's the buyout price for dumping a partner?http://www.askthebusinesslawyer.com/blog/2009/5/21/partnership-qa-whats-the-buyout-price-for-dumping-a-partner.htmlNina Kaufman2009-05-21T16:00:54Z2009-05-21T16:00:54ZQ.:

I own 51 percent of an LLC. If I plan to split with my business partner what am I responsible to pay him?

 

Read on to find out . . . !

]]>Partnership Q&A: Selling to key employees . . . and third partieshttp://www.askthebusinesslawyer.com/blog/2009/5/19/partnership-qa-selling-to-key-employees-and-third-parties.htmlNina Kaufman2009-05-19T16:00:11Z2009-05-19T16:00:11ZQ.:

I own 50 percent of a plumbing business. We intend to sell it to our two key employees. We need someone to take over the inner workings and have a third party willing to buy in, but she wants to include her bookkeeping business as part of the package.  Help?

Read on to find out more . . . .

]]>Partnership Q&A: Using life insurance for buyoutshttp://www.askthebusinesslawyer.com/blog/2009/5/14/partnership-qa-using-life-insurance-for-buyouts.htmlNina Kaufman2009-05-14T16:00:35Z2009-05-14T16:00:35ZQ.:

Can a partnership use a partner's family term life insurance policy as a business expense, with the intention of using the policy as a way to buy out the spouse's interest in the business?

 

Read on to find out . . . .

]]>Partnership Q&A: Partner resignations and lease liabilitieshttp://www.askthebusinesslawyer.com/blog/2009/5/12/partnership-qa-partner-resignations-and-lease-liabilities.htmlNina Kaufman2009-05-12T16:00:11Z2009-05-12T16:00:11ZQ.:

When a partner resigns from an LLC, what can that partner do to remove liability from the lease?  I started an LLC in the state of Arizona with two partners. After a year in business I am choosing to take another path and I am attempting to separate my legal liabilities. We initially signed a three-year lease with personal guarantees and currently have 23 months remaining. I am trying to figure out the route to take in order to bring a convincing argument to the property manager/owner to be removed of liability.

Read on to find out . . . .

]]>Partnership Q&A: What is sweat equity?http://www.askthebusinesslawyer.com/blog/2009/5/7/partnership-qa-what-is-sweat-equity.htmlNina Kaufman2009-05-07T16:00:50Z2009-05-07T16:00:50ZQ.:  What is sweat equity and how does it work? My husband has recently started a new job where the salary is $50,000; however, he only takes home $25,000. The other half is going into sweat equity. Is this a normal practice and how might my husband benefit from this?

 

Read on to find out . . . !

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