Friends As Business Partners: Three Musts

How can friends who become business partners keep their partnership alive and thriving? This is an excellent question and a crucial one. While getting my MBA at Wharton, I worked for an M&A (mergers and acquisitions) boutique that valued companies. Many of these valuations were for breakups and many of the breakups were not amicable. Often, the “partners” (I use the term loosely since most of the companies were not partnerships but were corporations and LLCs.) had been long-time friends but their working relationships drastically deteriorated over time and took the friendship with it.

This situation is not dissimilar from what can happen when best friends room together in college. I was a resident advisor (RAs) in college and I would INSIST on a room contract. The best friends usually would not want to work through one and sign it, saying they had known each other for forever. I said that best friends were most likely to take the other for granted. Best friends do things to each other that they would never do to a stranger. (This I garnered from other, more experienced RAs and the Head Resident). I never had any best friendships break apart but those RAs who did not insist on the room contract did. Boys and girls, men and women, did not and does not matter. Sometimes over-familiarity does breed contempt.

Therefore, please be aware and think things through no matter how close you are. If you are about to start or buy a business together, write it down!! It is always amazing how two or more people were in the same conversation at the same place at the same time but the interpretations and perceptions of what was said differ. If you wrote the discussion and terms down, everyone is and will remain on the same page.

Specifically, you should create or do the following:

1. Create and operate under a Buy/Sell Agreement. This is crucial. The Buy/Sell Agreement clearly delineates what happens in the event of a break-up, death, offer to purchase the company, and all the other scenarios partners who are friends typically do not consider. In the event of a disagreement in later years, this written Agreement will help resolve the conflict.

2. Clearly delineate who is the highest ranking person in the company, who is responsible for what, and what those responsibilities are. For example, one partner is in charge of sales and marketing and the other is in charge of finance and operations. One person can be the clear final decision maker overall or the final decision can be determined by who is in charge of that area of responsibility. You both cannot be the decision maker for the all the areas. That would be highly inefficient and lead to unnecessary arguments because you will disagree.

3. Place limits on when business can be discussed. Friends partnering is not dissimilar from spouses partnering. In order to continue to enjoy the companionship and foster the friendly feelings that brought the friends together, the friends/partners must take time at least 1x/month, preferably 2x/month or more to socialize without discussing business.

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How to Choose the Right Condo Conversion Business Partner – Two Minds Are Better Than One

Deciding whether or not to partner with someone for your condo conversions is a very personal decision. While many investors prefer to go it alone, others would never dream of starting anything so big without the security of a partner. Like many things in life, it may require a little trial and error before you either find the right fit or decide to go it on your own. Should you opt for business partner, here are some things to consider:

The Advantages:

Each partner brings a different perspective to the project. This can increase the creative flow and give a real boost to the problem solving process.
Having a partner can often help reduce the stress levels of a big undertaking. Just by having someone to share the issues with can make them seem less daunting
Oftentimes financing is made easier by having a partner since banks see more than one source of collateral.
The Disadvantages:

Different ways of doing things, different ways of approaching issues, and different ways of dealing with others can sometimes lead to confrontations.
Decision making can be difficult when different people have different expectations or goals for the project.
Partnering with someone in business who has been, or is, a friend on a personal level can sometimes damage a good friendship.
If you decide to go ahead and partner up with someone for your condo conversion projects, here are some more things to remember:

This is a business relationship, so treat it as such. Go together to your attorney and complete all the required legal aspects of the company.
Be sure the person or persons with whom you are partnering can bring value to the project. Make certain they have experience, knowledge or skills that are necessary and valuable.
Take care to find a partner who shares your enthusiasm, goals and work ethics. A partnership will not last long if one person feels they are doing all the work. A situation where one partner wants to work 16 hour days while the other wants to work 6 is not going to work out well. And having a partner who conducts business activities in a way that seems unethical or embarrassing is not going to instil confidence in the company with others.
Make certain your partner is someone you can communicate with openly and honestly. You will need to stay in touch on all matters of the business even as you are each attending to different things. Communication that is clear and concise, therefore becomes essential.
In business, it is extremely important to understand your own weaknesses and strengths. When you know these, you can look for a partner who truly compliments you. Find someone who excels in the areas where you are weak and you’ll have a partner who can truly help you and your business to grow.
And most important of all, keep a watchful eye on the relationship, and address issues as soon as they emerge. It is far better to decide to cut the ties if things aren’t going well than to let things fester until resentments form and anger builds.
If you liked this article about investing in condo conversions [http://TheCondoKit.com], tell your friends about it. They’ll thank you for it. If you have a blog or website, you can link to it or even post it to your own site (don’t forget to mention [http://www.TheCondoKit.com] as the original source), or just come visit our site to learn lots more.

About the Author

Matt Sparks is a successful entrepreneur, both offline and on. He is also an amateur rock climber and author. He has written books, articles, and blogs about social business, real estate, finance, New Urbanism, sustainable cities, longevity, and rock climbing.

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Find A Business Partner

Tired of going it alone? Is the burden of making all the decisions, providing all the financing and working continuously more than what you anticipated? Or perhaps you’re missing key elements for your business such as assets, skill sets, products or services that could propel your business to the next level. All these reasons and more are enough to hinder the growth of a would-be successful business; therefore, finding a business partner could be the answer to your predicament. The primary reasons, I believe, one seeks to find a business partner is to maximize profit while minimizing risk and effort. I know you’re probably thinking of the old adage which equates partnerships to marriages and we all know how a lot of marriages turn out. But unlike a marriage, a good partnership is not built on emotions and feelings but sound analytical judgment. If executed correctly, a good partnership will add value to your business.

Partnership or Strategic Alliance

Don’t worry a partnering agreement doesn’t have to be a lifetime commitment. In fact, you can and should create a strategic alliance as a way of testing the viability of the potential partnership before you sign a contractual agreement to form a partnership. A strategic alliance by definition is usually less formal and typically has a specific end date. You can develop a strategic alliance with a business or entrepreneur. It can be for a specific project, task or the obtainment of a particular product or service. Developing a strategic alliance first, will allow you to test the arrangement before determining if something more lasting can be established.

SBA Pilots Small Business Teaming Program

Another form of collaboration is “Teaming”. Teaming agreements are for the express purpose of working on a specific project or bid. It allows small businesses to pool their resources for projects or bids too large for one business to handle. The federal government believes so strongly in this, that the Jobs Act authorizes the Small Business Adminstration (SBA) to “make grants to eligible organizations to provide assistance and guidance to teams of small business concerns seeking to compete for larger procurement contracts.” The SBA Office of Government Contracting is executing this provision by asking qualified organizations (for profit and non profit) to compete for the grant funding. Recipients of awards made under this Announcement will be expected to help small business concerns “find other firms that may be interested in teaming with them, assist small business concerns with the formation and execution of teaming arrangements, aid teams of small business concerns with identifying appropriate larger contracting opportunities, and assist teams of small business concerns with the preparation and submission of bids and offers”.

Tips for Developing a Partnering Alliance

1. Develop a Plan – first, you must determine your company’s value and the value you want from the alliance partner. You can accomplish this by outlining your strengths and weaknesses. Knowing what you bring to the table and what you want from the alliance partner helps you develop a strategy.

2. Identify the Right Partner – once you’ve identified an alliance partner, perform your due diligence to determine if the alliance partner is the right fit. Determine the alliance partner’s:

• Objectives
• Financial Position
• Core Capabilities
• Company Culture
• Tangible and Intangible Assets
• Operations and Processes
• Legal Liabilities (if any)

3. Develop the Agreement – Joint Ventures and partnerships will usually require a more formal contract than a strategic alliance. Consider the following when developing an agreement:

• Legal structure
• Equity interests of each party
• Initial capital and any commitments to future financing
• Voting structure
• Decisions requiring consent of the partners
• Commitments to provide technology
• Non-compete undertakings
• Broad scope of any warranties/indemnities
• Basic exit provisions
• Condition standards
• Target timescales

4. Performance Measurements – develop accountability measures with a timetable for goals and benchmarks.

Whether developing a partnership, joint venture, strategic alliance or teaming, it’s always good to consult with your attorney before signing the agreement.

Dee Dee Harbut is the president of Partners In Demand. Partners In Demand is an online service used by entrepreneurs and small to med-sized businesses to find partnering opportunities. Using a proprietary algorithm, the service connects entrepreneurs and businesses, helping them to find matches for joint ventures, strategic alliances, partnerships, marketing alliances and collaborative agreements. Entrepreneurs and businesses seek partnering opportunities to help them increase sales, grow market share, cut costs, and much more.

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Finding the Right Business Partner

One of the major challenges facing entrepreneurs and business leaders is finding the right business partners. Great care should be exercised when selecting associates because the right choice can bridge gaps and assist in the execution of your business plan. The wrong choice can harm the reputation and earnings of your company. One should consider the following
when forming strategic alliances:

Find Believers in Your Mission

No one will champion your cause like a true believer in your vision, products, and services. Align yourself with those who comprehend the magnitude of what you are doing and will offer wholehearted support to your endeavors. Those who align themselves with you solely for monetary gain will often carry a short-term perspective that will conflict with your long-term business strategy.

Active Partner vs. Passive Partner

Another consideration is: Are you looking for an active or passive interest holder in your business? Do you seek someone who will be involved in the day-to-day management of the company? Many entrepreneurs opt for passive partners to avoid having them encroach on the management of the business. If you elect active partners, it is important that they share
the same vision, objectives, and ethics as your associates.

Smart Money vs. Silent Money

When pursuing financial partnerships, you have several options. You can choose investors that will solely provide financing, or you can partner with funding sources that will also offer guidance and help in strategic planning. Silent monëy could be the right choice if you have a seasoned management team and desire total creative control. However, if in both cases you will surrender the same amount of equity, it makes more sense to
partner with investors who are well connected and may also offer advisory services.

Complementary Skill Set

Your ideal operations partner will have a complementary skill set. They will strengthen your areas of weakness and allow you to compete effectively. Their affiliation will most importantly shorten, or eliminate altogether, the development time necessary in particular areas. Your resources will not have to be spent acquiring expertise in areas where your partner is already adept.

Alliances

Your ideal partner should also be in a position to help you förm strategic partnerships. This person/organization ought to be able to help you align yourself with people who can assist in growing your business. Strategic partnerships can also bring about needed political affiliations.

Growth and Exit Strategy

A major point of contention for many partners is the company’s growth and exit strategy. Some parties may be content as the owners of a small business, while others seek to franchise or even go public. All parties should be in agreement on how they plan to access the equity of the company, rather it be by salary and dividends, or a substantial liquidity event.

The right partner can ease the road and multiply the profïts of your business. Whether you’re looking for investment funds, advice, a complementary skill set, or helpful associations, choose this relationship wisely.

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Business Acumen – Buying Out a Small Business Partner

Looking for buying out a partner generally refers to businesses searching for information on how to purchase the shares of another partner. Partners may decide to leave a business if they are retiring, relocating, or otherwise can no longer take part in the business’s activities.

The first step in buying out a partner is to determine how much the partner’s shares are worth. This can be determined a number of ways. Value could be based on the market value of the company, the amount invested by the partner, or a pre-determined price detailed in a partnership agreement.

The next step when looking to buy out a partner is to find capital to finance the buy out. Though most lending institutions do not provide loans specifically for buying out a partner, they do offer loan programs that can be used towards any general business purpose. Most buyouts require large sums of money, and to apply for a large loan, lenders usually require personal and company financial documents, a business plan, and credit reports. Collateral is also required for secured loans, which can provide lower interest rates than unsecured loans.

If a business is looking to replace a partner, it may be able to obtain funding from an investor. Partner investors contribute large sums of capital in exchange for a portion of the business’s profits and a voice in the business’s decisions. In the case of buying out a partner, an investor could purchase the shares of the leaving partner and become part of the business.

Small business buying out partner usually refers to small business owners searching for information regarding buying out another business partner. Partners may wish to sell their shares of a company when they retire, relocate, or otherwise can no longer take part in the business’s activities.

The first step in buying out a partner in a small business is determining the value of the partner’s shares of the business. To resolve this problem, many businesses with two or more owners create and sign a partnership agreement that predetermines the value of every owner’s share of the business. For partnerships that do not have an agreement like this, the value can be determined by looking at how much the partner invested in the business or how much the business is currently worth on the market.

Once all partners have agreed on a selling price, the owner buying out must find financing. Most lenders don’t offer loans specifically for buyouts, but their loans can usually be used for any business purpose. Buyouts typically require large sums of money, and lenders have more extensive requirements for large loans. To get a lowered interest rate, many borrowers use personal or business assets to secure the loan.

Another source of financing for a small business buying out a partner is another investor. If a business owner can find an investor who is willing to purchase the other partner’s shares, then the owner will not have to take out another loan. The business owner simply gets a new partner to work with.

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What Is The Cost Of A Physician Disability Insurance Cover?

Owing to the fact that the resources and assets at people’s disposal are shrinking day in day out, human beings have learned to be careful when it comes to spending. They will always remember to ask the question of what the cost of something will be. There are high chances that some people are interested in taking physician disability insurance and are wondering how much it will cost them. If you are one of them then keep reading to learn more.

Sincerely speaking it might not be possible for and individual to quote the exact cost of taking such a cover. Any person who comes up with such a figure might be wrong. They will be wrong because the conditions surrounding a single person might not be the same conditions surrounding another person. To determine therefore the amount of money an individual will be expected to part with will depend on some aspects which include the following:

Age of the insured

Once a person makes up their mind to go for Physician Own Specialty Disability Insurance then they should stay informed that their age will determine the amount of money they will have to pay as premiums. In most cases the amount of premiums increases as the age advances. This means that the younger a person is the cheaper their policy will cost.

This should be a motivating factor to the young people. They should try as much as possible to go for these covers because if they wait longer the price of the policy will go high. Taking this advantage can be a wise decision in one’s life.

The gender of a person

In most cases people forget thinking about gender of the person taking the cover. In general, the females have high chances of facing the risks insured against. This will imply that the higher the chances of getting impairments the more amount of premiums an individual should expect to pay.

Those people who are of a masculine gender will purchase the cover at a relatively lower price compared to their counterparts of the other gender.

Health history of a person

The health history of an individual can tell us more of what we should be expecting. Those people who have been having several ailments or those whose family tree is known for certain defects should be prepared to part with large sums of money. These health complications have high chances of making an individual suffer from a risk insured against.

An individual with a clean history in health issues should therefore be prepared to pay less amount of money in terms of premiums.

The type of policy

The insurance companies offer a wide range of policies. This means that when making a choice an individual should make sure that comparisons have been made. For instance an individual who gets attracted to the Guardian policy should be ready to pay a lot of money because this is the most expensive policy. So when taking Own Specialty Physician Disability Insurance the type and nature of policy taken is greatly vital to a person.

There is no way all these aspects can affect an individual negatively and therefore there is need of getting worried of things like one is a female, they are of an advanced age, or they have bad reputation in their health history all shall be well.

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Why Should One Go For Professional Disability Insurance?

How does it feel when a person is employed, is working and all is going well? They might be tempted to think that they will remain in such states for a very long time. The most important thing an individual should begin by appreciating is that the events of the next day, next hour or even next minute are uncertain. This is why a person should make sure that they have taken necessary precautions so that they can continue enjoy living on this earth.

It takes a few minutes to contract an impairment. To make the matters worse, there are some impairments which might make one unable to continue working. For instance, think about a news reporter who gets involved in an accident and ends up losing all their legs. Probably they will no longer be able to attend events and report as they used to do before the occurrence took place. This stretches to other several professions and therefore taking precautionary measures is what an individual should plan for. Some of the reasons as to why taking Own Occupation Disability Insurance policies remains benevolent to an individual include the following:

Ensures financial security

Every human being who is employed today has dependents. They also depend on what they earn for their daily upkeep. It might not be easy for such a person to survive and continue supporting the people they were supporting after an impairment given that they will no longer be employed. An individual who had taken a Professional Disability Insurance is assured of a happy living because they will be compensated.

There are some companies which pay up to 75 percent of what an individual used to earn. Even though an individual will be receiving less than what they used to earn, the most important thing here is that they have something to survive on. It can be frustrating for an individual who has no money, no employment and cannot work but has bills to settle.

Allows one time to transit to another profession

There are various types of professions across the world. Once an individual becomes disabled such that they cannot continue performing their work well, they should think about changing their profession. For instance in the case of a reporter, they can become an editor.

In most cases some training will be necessary to allow these people take up new roles. The compensation they receive will help them to go for such training activities. An individual who has nothing might not be able to change their profession because they lack moral and financial support.

Grants one mental solace

Think about someone who is bedridden because of an accident. This person has no food, no money and they have exhausted their savings. Such a person will have to survive at the mercy of friends, relatives and other well-wishers. At some point they might be taken as a luggage to those taking care of them.

When a person mentally surveys all these conditions and realize that it was not their mistake, they might contract mental frustration. The only way such a person will be healed is by getting an assurance that they have support. There is no need of waiting for an assurance that might never come. One has to go for Professional Own Specialty Disability Insurance and all shall be well with them.

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Get The Best Americas Doctor Disability Insurance

It is very important for doctors in America to have disability insurance. Unlike many other professions they work in an area of high risk. No doubt they are well trained educated and are working 40 hours a week, most of the time on their feet.

They need insurance to take care of any eventuality in their life wherethey fall ill and have to take rest. It is become extremely difficult for physicians to get disability cover in their own specialty. There is work being done at Doctor’s Disability Shop so that doctors can avail of a discount to get disability insurance for their ‘own specialty’

How Does Own Specialty Insurance Work?

Doctors are given the opportunity to choose their ‘own specialty’ disability insurance plan that is ideal for them. Once the doctor has decided on the plan, it is easy to apply since it is done electronically and does not require any paper work.

Disability Pro protects your income so you can provide for your family when you are faced with a disability. All that the physician needs to do is get the right amount of coverage. Disability Pro helps you to meet your financial needs when you are disabled and cannot take care of your patients. You can get remuneration which is equivalent to your own specialty.

Physician disability insurance covers the physician in his own specialty. The insurance stays with the physician even though he changes his employer. He can get up to $15,000 in monthly benefits. If it is catastrophic disability the doctor can get nursing at home and health care. All physicians get 15% reduction while AMA members get 35% reduction.

Physician’s Disability Insurance Policies

There are different types of disability insurance policies that physicians can avail of. They are Mass Mutual, MetLife, Berkshire Life (Guardian), Principal, and Union Central Life. Many of the provisions are same in each of the companies. But there are a few differences which may help to choose the particular insurance company.

It is very important to classify the medical specialty to determine the premium rate. The higher the occupational classification assigned to the medical profession the lower is the premium rate. Different companies may assign a different class of occupation to the profession which might change the rate of premium. The financial planners or the agents are in a better position to advise the best insurance company to insure as per the medical specialty.

The Best Physician Disability Insurance

Like all professions doctors also take precautions to see that health and life insurance are taken care of in their life and try to invest wisely for a good retired life. But many times they do not take into account a disability or injury.

The chances of a disability and injury are quite high and at such times it is difficult for social security, worker’s compensation, insurance and savings to meet all the bills. Disability insurance is a necessity. You have to know what the coverage that the disability insurance provides and the policy that is not taxable. The agents are the best people to guide you in taking the right policy.

So, if you are a physician who wants to take disability insurance contact the agents to find out the best policy for you.

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Why Do You Md Own Specialty Disability Insurance

When it comes to insurance types that are usually very much ignored, disability insurance tops the list. This is due to the fact that you hardly see people paying for disability insurance as they are more concerned about auto insurance and the more popular type of insurances. Generally, you might not know about habits you indulge in or the fact that your health is deteriorating regularly until you are suddenly down. Furthermore, there are also a number of sudden disasters that could suddenly make an individual disable in an instant, especially accidents. This is apart from the unpredictable nature of the body as illness or disease that could lead to disability can attack an individual in an instant.

Md own specialty disability insurance is a type of insurance policy that covers a good percentage of your monthly income from your job in the instant that you are suddenly unable to do any time of work. Overall, you will be protected in terms of your finances, should you become unable to work. Most people find it difficult thinking about disability as nobody wishes to be disable. This notwithstanding, there are several people who due to one disability or the other cannot work. With a disability insurance, you will be protected from having to face serious financial hardships if you suddenly become disable. Here are some reasons why you should have a Md own specialty disability insurance.

Income Loss

A major reason why you will need Md own specialty disability insurance is as a result of income loss. If you are losing your source of income due to disability, you will be getting some paid sick leave. However, the expenses on diagnosing what is wrong with you, treating it and recovering from the disability could be huge. Furthermore, your monthly expenses such as feeding and toiletries amongst others will continue. Even though your medical bills are to be covered by a medical insurance, you can still become stranded due to the other expenses. Furthermore, when your source of income is completely cut off due to disability and you have bills to continue to run, own specialty disability insurance can go a long way to help you cater for your bills.

Medical expenses

Even with your medical insurance, the increasingly expensive cost of healthcare can be a major challenge. You will need to continuously pay bills and buy drugs all through the period you need treatment and recovering. There are cases where a therapists or other specialist might be required to speed up your recovery. All of these require a lot of money. The transportation to and fro the hospital for check-ups will also require spending more money.

Other expenses

Miscellaneous expenses will also come up while you are suffering from your disability and unable to do any paid job. Having enough money to still sometimes make yourself happy such as going for dinner and even attending birthdays and other celebrations with friends, will go a long way to save you from a stressful and boring life, during your period of disability.

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Disability And Disability Insurance For Doctors

Disability has been described as a condition in which the sufferer is unable to perform optimally the normal day to day functions which they used to be involved in. For doctors disability is a condition in which they are unable to attend to their patients any longer. They cannot carry out surgeries or go to clinic and all the other numerous activities which they are usually involved in.

During the course of work and over a period of time, it is possible for a doctor to develop some kind of disability or the other which can seriously impair the functions of the doctor. Doctor Disability Benefitsdescribes the way which insurance can be used to ensure that doctors do not suffer unduly in the case of any eventuality and they get disabled and unable to work.

Some of these disabilities include

1. Cardiovascular diseases and diseases of the circulatory system- this might be due to the fact that long hours are spent standing up and working. It has been noticed that a lot of doctors suffer from heart diseases and circulatory system health challenges. When these sicknesses impair and affect the normal day to day function of the doctor then his ability to function and attend to his clients is impaired.

2. Musculoskeletal illnesses- the long hours of standing and not sitting down can also affect the bones and joints of doctors. This can lead to illnesses such as rheumatism, arthritis and the likes. One problem with these illnesses is the amount of pain which sufferers go through over the course of the illness. This suffering makes it most of the times impossible for doctors to attend to patients and perform surgeries.

3. Mental disorders- doctors are also human like the people they treat and so they are also prone to suffering from whatever illness which humans suffer from. One of such problems is psychiatric illness. Some doctors while on the job have been seen and reported to have exhibited erratic behaviour. When this wrong behaviour was brought under scrutiny, they found out that the doctors were actually suffering from one mental illness or another ranging from plain depression to schizophrenia and even manic depressive disorders. All these illnesses will certainly affect the doctor’s ability to function optimally and properly. In such an instance such a doctor might be asked to stop working.

All the illnesses mentioned above and much more can deter a doctor from being able to continue to function well in the capacity which is expected of him. When a doctor suffers from any of such disabilities, it will be a thing of sadness if such a doctor does not have an insurance plan. A disability insurance plan is a kind of insurance plan. If a doctor takes out a policy which has disability insurance as the thrust of its focus, such a doctor is better placed to ride out the waves of life which such disability has thrown at him.

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