Active partners or go solo? - Posted by Todd
Posted by Todd on March 13, 2002 at 22:07:57:
I have 2 co-workers who share my interest in getting involved in REI. We have all been working recently on our education (Carleton sheets, books, this forum, etc…) and discuss on our lunch breaks how we are going to go about taking our first step from education to action. What I am trying to decide is when it comes to action whether it will be better to try to attack it as partners, or if it would be best to go it alone. We are all approximately the same age, have the same amount of time/money to invest (5-10 hours/week, not broke but not a load of startup cash), and share most of the same long-term and financial goals.
I know that a lot of people put together a cash partner for some deals, but I am hoping to hear from people who have tried or are still in “active” partnerships (regardless of legal entity, not including spouses) and how it has worked out.
The way I see it…
- Motivate each other with education and goal-setting
- Share in the startup and on-going marketing costs
- Carry only a portion of the financial risk of any one deal
- Diverse skills to “bring to the game” towards a common goal.
- Disagreement on how to structure a deal or whether to make it at all.
- “Bitterness” if one person seemed to not be pulling their fair share in some aspect. (especially financial)
- Less payoff on each deal, need a larger volume of deals to meet individual financial goals.
Obviously I would try to cover as much of the potential downfalls as possible in a partnership agreement or corporate bylaws…
Any comments on this issue or links to previous discussions are much appreciated! (I have learned much from the discussions on the best legal entity, but didn’t really find anything in the archives on making the decision to work as a team or work alone.)