1. Friends as Business Partners Steps to Take to Ensure an Ongoing Successful Relationship 1.Friends 2.Write It Down 3.Steps

2. Friends Beware

Friends opt to co-found a business

• Mutual trust & respect

Relationship is great at first, sometimes for a number of years

Problems occur

• One dies or becomes disabled

• One wants to spend less time with business

• Disagreements over strategy or finances

www.TheResourcefulCEO.com 3. Friends Age Doesnt Matter

Saw similar issues at M&A boutique/advisory firm as saw as college R.A.

• Friends did not want to sign anything, staying they know & trust one another.

• Friends take one another for granted, taking liberties wouldnt take with strangers.

• Boys/girls, men/women, didnt/doesnt matter.

www.TheResourcefulCEO.com 4. Put It In Writing!

Amazing how two people in the same conversation have completely different perceptions and interpretations

• Why companies create meeting notes.

Document discussion & terms

• All will be in the same page.

www.TheResourceful.com 5. Buy/Sell Agreement Step 1

• Create a Buy/Sell Agreement or a Shareholders Agreement.

• • Clearly delineates what happens in a break-up, death, offer-to-purchase, other scenarios.

• • Addresses issues friends rarely consider.

• • Will help resolve conflict when it arises later on.

www.TheResourceful.com 6. Delineate Who Is in Charge Step 2

• • Clearly delineate who is the highest ranking person in the company.

• Who has overall authority? May have one clear decision-maker overall.

• Who is responsible for what? What are those responsibilities? Final decision may be determined by who is in charge of the area.

• Both cannot be decision maker for all things at all times. Highly inefficient. Leads to unnecessary arguments.

www.TheResourcefulCEO.com 7. Limit Business DiscussionsStep 3

Place limits on business discussions.

• Moderately similar to spouses partnering.

• Maintain friendly activities and socializing with NO business discussed.

www.TheResourcefulCEO.com 8.

Additional Information:

Solving the CapitalEquation:Financing Solutions for Small Businesses

Available on Amazon

Getting Started 9.

Thank You!

Contact Us Tiffany C. Wright Follow my blog, The Resourceful CEO: http://www.TheResourcefulCEO.com The Resourceful CEO Toca Family Business Services