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Business partnerships are vital to the US economy yet their failure rate is alarming: 70% of them don't make it. Dr. Lehavi is leading the charge to reverse this statistic. As a business partnership relationship coach, she intimately knows the impact that these partnerships have on cofounders, employees, customers, families, local communities, and global markets. Business Partnership Essentials walks you through every phase of the process-from choosing the right partner and operating your business on a daily basis, all the way through to exit and planning for the unexpected. This book is not a book on business startups and so it does not address the finances of starting up a partnership, but rather, it focuses on agreeing on all aspects of your relationship with your business partner. Following Lehavi's guidance will ensure that you've done everything you can to help your partnership succeed.
Dorene Lehavi, Adjunct Professor, School of Social Work, USC, Los Angeles; Business Partnership Relationship Coach
Part I: Choosing the Right Partner ¿ 1
Chapter 1: Hook Up or Stay Solo: The Benefits of a Partnership ¿ 3
Advantages of a Partnership ¿ 4
The End of Isolation ¿ 5
Shared Risks and Responsibilities ¿ 5
Aligned Individual Strengths ¿ 5
Two Heads (and Hearts) are Better Than One ¿ 6
Why Do You Want a Business Partner, Honestly? ¿ 6
A Final Word About Going Solo ¿ 7
ESSENTIAL QUESTIONS: ¿ 7
Chapter 2: Your Significant "Business Other": Choosing the Right
Partner ¿ 9
Compromise Improves the Bottom Line ¿ 10
Even Near Perfect Partnerships Benefit from Good Communication ¿ 10
Doomed from the Start ¿ 12
Three Essential Words: Communication, Transparency and
Responsibility ¿ 14
Everyone Loses When Playing the Blame Game ¿ 15
I've Got Your Back ¿ 16
Improved Communication Benefits All Your Relationships ¿ 16
Communication in the Online World ¿ 17
Chapter 3: Getting to Know You: Playing the Field with a Purpose ¿ 19
How to Date Your Potential Partner ¿ 19
Continue Being Open and Honest During the Dating Process ¿ 20
Avoiding Confrontation Leads to Confrontation ¿ 21
Specific Topics That Should be Addressed with Your Partner ¿ 22
Partners Must be on the Same Page from the Beginning ¿ 25
Partnerships Can End When Values Change ¿ 26
Are Complementary Skills Required? ¿ 26
Keep Dating and Keep Asking Questions ¿ 27
Chapter 4: All in the Family: Partnering with Friends, Spouses and
Relatives ¿ 29
Working with Relatives: How Do You Fire Mom? ¿ 29
Working as a Team Makes This Partnership Work ¿ 30
Best Friends as Business Partners ¿ 31
A Friendship Saved ¿ 32
Married Partners: Saying "I Do" Twice ¿ 33
One Sentence Changed the Business ¿ 34
Keep Business and Married Time Separate ¿ 35
Married Business Partners Defy the Odds ¿ 35
Chapter 5: Take a Vow or Walk Away: Deciding to Move Forward or Not ¿ 39
A Model Partnership . . . Again and Again ¿ 40
Part II: Planning for Your Future Together ¿ 43
Chapter 6: Setting a Solid Foundation: The BPAT ¿ 45
The Business Partnership Agreement Template ¿ 46
Drafting the BPAT ¿ 47
Writing It Down Can Save Anguish in the Future ¿ 49
BPAT Saves the Business ¿ 50
Mission and Vision Statements: An Important Part of the BPAT ¿ 52
Vision Statement ¿ 52
Partnership is Successful All the Way Through to Exit ¿ 52
Mission Statement ¿ 53
Live Your Mission Today and Plan Your Vision for the Long-Term ¿ 54
Other Important Elements of the BPAT ¿ 55
Chapter 7: 'Til Death or Design Do We Part: Planning a Winning Exit
Strategy ¿ 57
Exit Strategy Considerations ¿ 58
Enjoying Retirement: Life After the Sale of a Business ¿ 58
Do Periodic Assessments of Your Exit Strategy ¿ 60
Chapter 8: The Partnership Agreement: Putting Your Handshake on
Paper ¿ 63
Five Key Elements of a Partnership Agreement ¿ 64
1. Financial and Other Contributions by the Partners ¿ 64
2. Equity Shares in a Business Partnership ¿ 64
3. Restrictions of Authority and Expenditures ¿ 66
4. Partner Duties and Responsibilities ¿ 67
5. Dispute Settlement Strategy ¿ 68
Chapter 9: The Future is Now: Formulating Your Business Plan ¿ 71
Your Business Plan is a Living Document ¿ 72
A Typical Business Plan Outline ¿ 73
Executive Summary ¿ 73
Business Strategy ¿ 73
Financial Plan ¿ 73
Marketing Strategy ¿ 74
Community Participation ¿ 74
Areas of Responsibilities and Tasks ¿ 74
Chapter 10: Life Happens: Preparing for "What Ifs" and the Unexpected ¿ 77
Vision What Ifs ¿ 78
Finance What Ifs ¿ 78
Employee What Ifs ¿ 79
Daily What Ifs ¿ 79
Personal Life What Ifs ¿ 79
Exiting What Ifs ¿ 79
Part III: After the Honeymoon ¿ 81
Chapter 11: Finding Your Daily Rhythm ¿ 83
Keeping the Home Fires Burning ¿ 83
Daily Meetings ¿ 84
Weekly Meetings ¿ 84
Monthly Meetings ¿ 85
Annual Meetings ¿ 85
What Happens Within the Meetings ¿ 86
Meeting Topics for Discussion ¿ 86
Chapter 12: Listen Up: Essential Communication Skills ¿ 89
Improve Your Listening Skills ¿ 90
Get rid of the idea that you have to be right ¿ 90
Listen with an open mind ¿ 90
Actively participate by giving positive feedback ¿ 90
Allow for the possibility that you have something to learn from the
other person ¿ 91
Forget about preparing your response ¿ 91
The Value of Compromise ¿ 92
Chapter 13: Trouble in Paradise? Conflict Resolution Basics ¿ 97
Red Flags That Your Business Partnership is in Jeopardy ¿ 99
Averting a Crisis ¿ 100
An Exception to the Rule ¿ 101
When a Conflict Erupts ¿ 102
Part IV: Collaborations Is the New Currency ¿ 105
Chapter 14: A Word About Joint Ventures ¿ 107
Collaborations for a Cause ¿ 109
Chapter 15: Parting Thoughts on Partnerships ¿ 111
Essentials to Your Partnership Success: A Summary ¿ 111
A Final Note Before I Leave You to Your Business Partnership ¿ 112
Appendix A: Keys to Effectively Delegating and Having Time for
Yourself ¿ 115
Eight Keys to Successful Delegation ¿ 115
Appendix B: Business Partnership Success Meter ¿ 117
Success Meter Scores ¿ 118
Index ¿ 119
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