Your start up_partnership

Companion Materials for StrategicPartnership Workshop

Copyright 2009 The Hendrickson Group

Should I Have A Business Partner?

Introduction

• This document is the companion guide to the course: Your Start –UpPartnership.

• In the course, we discuss specific criterion that will help you find a suitablepartner, work toward a common goal using your individual strengths andskill sets while creating a valuable business.

• This companion guide helps you and your potential business partner sortout the issues that need to be discussed and decided prior to going intobusiness together.business together.

• Working through these questions will help you clarify your workingrelationship.

• If you’re already in business together, reviewing these questions may helpyou clarify your working relationship.

• If you’re looking to start a company with someone else, this guide will helpyou create a strong and successful partnership.


Why Go Into Business?

• There’s lots of reasons that people go into business:

– Many businesses are set up so that the shareholders can :

• Make money

• Live a lifestyle of their choosing

• Achieve personal and professional goals

• Contribute to society, self and/or a selected community• Contribute to society, self and/or a selected community


Why Do I Want to Open a Business?

• What do I want to get out of going into business?

• Why not just get a job?


Why am I going into this business?

• What is my motivation for working on this particular business idea?

• What are my expectations about this business?

• What am I willing to do to have this business idea work out?


What Is My Definition of Success?

• I will have succeeded in this business if I:

• The company will have succeeded if it:


Partnership Self-Assessment


World View

• A world view is the context that you see the world from. Doyou think the sky’s the limit? The glass half full? Do you callyourself an eternal optimist? Then you’ve got an optimisticworld view.

• Feel that the world might have danger and risk around everycorner? Feel like the glass is half empty? Then your worldview might include a low level of risk tolerance.view might include a low level of risk tolerance.

• Whatever your world view, it should jib with your partners.Have conflicting world views makes working together moredifficult. Similar world views allow for strategic agreementaround risk and reward and business decision making.


What is My World View?

• How do I see the world and my relationship to it?


Values

• Your values drive your actions. Having similar values has youand your partner align around these values which presents aunified way to drive and deliver results.

• Values such as integrity speak to mutually agreeable ways tobuild the business and its policies towards the partnership,customers and employees.


What Are My Personal Values?

• What values have I designed my life around?

• What values are most important to me?


Special Skill Sets

• Individuals that go into business bring specialized skill setsthat they may have learned in school, on the job or justthrough pursuing passions or interests.– Knowing what the skill sets that you bring to a business is important.

If you know what your strengths are and play to them, you can verymuch create at least part of a successful business.

– You may have to learn other skills or adapt your skill set for the– You may have to learn other skills or adapt your skill set for themarketplace, however, having these skills to start off with will give youthe boost to start your business.


Skill Set Assessment

• What personal skills and qualities do I bring to the business?

• What personal qualities do I bring to this business?

• What are my passions?

• Where’s the gap between the vision I have for this businessand the skill sets that I have?and the skill sets that I have?

• What are deal breakers for me?


Creating the Partnership


Partnerships

• Once you know what your skill sets are, recognize andacknowledge what you’re passionate about and what are dealbreakers for you, you’re ready to create an outline of whatcomplimentary skill sets and qualities that you need in apartner.partner.

• Often times new start ups happen because people like eachother and have similar interests and skill sets. Be advised thatthese people may be your friends but might not be the bestpeople to help grow your business. Having complimentaryrather than similar skill sets helps create a strong partnership.


Why am I going into this business with the partnerthat I’ve chosen?

• What personal skills and qualities do I bring to the business?

• What personal skills and qualities does my partner bring tothis business?

• Do our skills and qualities complement each other or do wereplicate each other?



• Shameless Disclaimer: I amnot an attorney. Pleasecheck with your attorney forany legal concerns that youmight have about creatingmight have about creatingthe partnership.


Legal Formulation

• Business Creation: Determining together the formulation ofthe business (LLC, S Corp, C Corp etc..)

• Financial Foundations: How will you get this company off theground? Will you each invest equal sums or what will thefinancial commitment be?financial commitment be?

• How will you create the ownership percentages for thebusiness (50%/50%, 51%/49% or other)


Planning from the End to the Beginning

• What’s my exit strategy? Is the question that you’d thinkcomes at the end of the journey, but really, it comes at thebeginning.

• Three Exits Strategies in Business:– IPO– IPO

– M&A (family succession is included in this)

– Go out of business

• What is my exit strategy?

• Is it the same as my business partners?



• Strategic Planning

– What does the business need from each of us? How will we create thestrategic plan together?

• Financial Requirements

– How much do we need to get this off the ground? How will we fuel thebusiness until we start selling product/services?business until we start selling product/services?

• Governance Issues– Division of accountabilities

– RACI Chart


Next Best Steps

• After you’ve gotten the partnership issues squared away, thencomes the fun part of business creation: actually strategizingand building the company. We don’t cover that in thisworkshop, however, FutureLAB: Weekend and FutureLAB:Start IT! are great places to turn your business dreams intoStart IT! are great places to turn your business dreams intoreality.

• For more information about FutureLAB workshops visitFutureLABmedia.com or email [email protected] more information.


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