Entering into a new partnership is exciting. Your head is dancing with the possibilities that the new venture could bring. You must, however, protect yourself. There are so many sayings that fit so well in this particular situation. I’m reminded of two saying that I use a great deal.
Good Fences Build Good Neighbors is a saying that my grandfather used to say. He was a farmer and a darn good one at that. He was full of wisdom that I always will value. Your neighbors seem to be nice people. If you want to keep that relationship friendly, you need to have clearly defined boundaries. I made my biggest business mistake when I was much younger when I entered into a business with acquaintances that I trusted. About ninety days into the venture, when all of my money was into the deal, they changed. They quickly took advantage of my and I lost a ton…including my marriage. Be sure to let your attorney handle any negotiations with you and make sure they are drawing up your agreements for you. Never ever ever ever write your agreements on your own. That goes doubly if you are an attorney. You are too close to the situation. You need to have an impartial, competent attorney “build your fences” by writing documents that protect you if and when things go back. Speaking of that…
The second saying that has a lot to teach us came from one of my friends that happens to be a divorce attorney. “Everything ends badly. Otherwise it wouldn’t end.” When two people get married, very few enter into the union thinking that they will ever get divorced from their partner, yet half of the marriages in America end in just that way. When you are entering into a new venture with someone, you really need to plan as if things will go awry. Are you protecting yourself and your interests? The time to prepare for things going bad is before you enter into the arrangement. Have your attorney protect your interests by having them draft good documents.
Entering into a new venture with others can be very exciting, but it can also leave you in the poor house. I made the mistake of not preparing from the outset for the separation. I’ve never made that mistake again. Take if from a guy that’s made that mistake before. Don’t let your rose-colored glasses cloud your judgement. Rely heavily on your attorney, accountant, and other impartial trusted advisors and protect yourself.