The upside of partnerships is that they directly improve the likeliness to succeed as increases in cash flow. More importantly, risk mitigation causes less financial stress in case of failure. Instead of standing to lose $10k, one can take on a partner and mitigate risk from $10k to $5k. This is especially important for startups, as market volatility is rampant. The startup life is certainly not for the fainthearted.

I’ve always been hesitant about starting a partnership. There’s always this one question, which is vague in terms of determining: who gets what percentage? There will always be some level of inequality of work due to many reasons. This can foster resentment and eventual breakup between partners. We can simply negate this by establishing checks and balances.

Checks and balances within partnerships, and businesses and relationships in general, requires quantifiable data. Hours spent, work completed, and results. Developing a magic ratio may be on the horizon. As my partnerships advance from idea to development to launch, I will have enough information to publish a more factual-based posting.

Until next time.