FOUNDATION OF TRUST

Business partnerships are built on trust. Trust is the foundation against which everything else grows. Trust in the capabilities of the other person, trust that they will do the best for the company, trust that they will meet any challenges head-on.

And this is right, if you can’t trust your business partner(s) 125%, then don’t go into business with them in the first place. This is the one of those times that it really is ok to listen to your gut instincts.

Eoin and I trust each other to completely. In fact we trust each other so much we put a business partnership agreement in place.

Er, if you trust each other so much, why would you bother?

Why Create A Business Partnership Agreement?

The creation of a business partnership or shareholders agreement is paramount to protecting both your interests and those of your business partner. Don’t worry, it doesn’t need to be a 250 page manual. Ours is two and half pages and covers off the fundamental questions such as;

1. What are respective roles and responsibilities are to the company.
2. What happens if one of us wants “out”?
3. What happens if one us becomes seriously ill?
4. How we will address issues if there is a dispute at any point.
5. The money side of things!
6. …..

Partnership agreements are not about an absence of trust, but are about an openness up front as to how the company will be operated from the owners perspectives.

They can and should be reviewed. There will be times when the agreement that was put in place may no longer be fair on one of the partners. There should be an open discussion and an edit of the clause(s) that are deemed unfair to the mutual benefit of all.

Business partnership agreements are the building blocks for how you will operate your business, supported by the fundamental foundation of trust. Have you one in place for your business?

Photo: schmollmolch