Top Signs You Have The Wrong Business Partner
Summary
- I have had nine failed partnerships, which shows that the common issue may have been with me, but I've learned valuable lessons from those experiences.
- Initially, I've found that it's generally better to not have a partnership, especially if it's formed for emotional needs rather than business merit.
- A partner should only be brought in if they provide money or skills that you lack, emphasizing the redundancy of two people with similar skill sets.
- I stress the importance of having contracts and clear terms within a partnership to set the correct expectations and handle the potential stress of business disagreements.
- I suggest using lawyers to draft partnership agreements or, at the very least, consulting one for advice if funds are low.
- I explain there are three critical roles in a business: acquisition (marketing and sales), product (what you're selling), and operations (backend administrative work).
- The value of these roles can vary, with acquisition often being a highly valued skill and good operators sometimes available without them requiring equity.
- I share my personal business structure where, at Gym Launch, I handle acquisition and product while my wife takes care of operations.
- If you have strong skills in acquisition and product, your first hire should be someone strong in operations to prevent legal and financial issues.
- For those currently in partnerships, it's imperative to clearly define individual responsibilities to ensure accountability and efficiency.
- Thinking big, acting big, and being organized are essential behaviors to grow and not remain small.
- Equity is your most valuable asset in business; be cautious about giving it away lightly, as I learned after nine failed partnerships.
- Married couples can make great business partners often because they typically have a natural specialization and complementary skills.
Video
How To Take Action
I would suggest implementing these tips:
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Only get a partner if they bring money or skills you do not have. It's better to be solo than to partner up for emotional reasons.
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Always have a clear contract for the partnership. Use a lawyer to set up the partnership terms. If you can't afford one, find free online templates and consult a lawyer for just an hour.
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Know the three critical roles: acquisition (marketing and sales), product (what you're selling), and operations (behind-the-scenes work like finance and HR).
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If you're good at acquisition and product, the first person you hire should be strong in operations to help you cover all bases and keep things legal.
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If you're already in a partnership, divide the tasks clearly. Each person should have their own responsibilities.
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Think and act big to grow your business. Be organized and define your roles to work efficiently.
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Be very cautious about giving away equity. It is your most valuable asset.
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Married couples can be great business partners because they often have complementary skills. They naturally divide tasks like front-end and back-end work.
By doing these things, you'll reduce stress and increase your chance of success. Remember, define roles and responsibilities clearly, whether you're starting out or restructuring an existing partnership. And always protect your equity—learn from my nine failed partnerships.
Quotes
"The only reason for you to have a partner is because they either have money or skills that you do not have"
– Alex Hormozi
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"If everyone's responsible for everything, no one's responsible for anything"
– Alex Hormozi
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"You got to do the actions before you get the results, you have to have the beliefs before you get the outcomes"
– Alex Hormozi
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"The reason most businesses stay small is because they think small and they act small"
– Alex Hormozi
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"Specialization of skills is what moved humanity forward"
– Alex Hormozi
