Proven Business Relationship Agreement
By DC Cordova
In my first post of this series “Proven Business Relationship Agreement”, I discussed and listed the key points to beginning to work in business with partners. The first steps of the Proven Business Relationship Agreement can be read here. You need to be willing to make your partner happy – much like in a personal relationship like a friend or marriage. Next, I want you to create joint ventures first to allow you to learn how you work together. One of the distinctions we cover in my program Money & You® is how you establish trust – you make small agreements. And keep them! This is exactly what a legal contract is… a series of small agreements.
The reason why Money & You® is so powerful is the way it is taught. Most people have experienced learning and education to lectures and notes. For many, this can be extremely tedious, frustrating and boring. We “excellerate” your learning in an experiential environment; it is proven that students learn faster (accelerated) when the medium is auditory, visual and kinesthetic. Meaning they not only hear and see the information but they also experience it.
In this article, you’ll learn the next seven points to creating your Proven Business Relationship Agreement. This series is all about clarity – clarity on purpose, clear rules, clear goals, clear money habits, clear financial habits, clear communication, and clear job descriptions.
If you like what you are reading, please share your thoughts in the comments section below. And to continue from the last post, here’s steps three through nine (3 – 9):
3. Get clear on your purpose
___ We have fully discussed why we are choosing to be together and want to do this particular venture or business.
___ We both know how each other feels about it and have stated out loud why we want this partnership — whether it is:
___ just to make money
___ to learn a new business or skill
___ to learn from our partner
___ because one is providing the funds and we need that money or we won’t be able to do that business.
___ because one is providing the expertise that, without which, we would not have a business.
___ We agree not to keep any secrets from each other. (We know they will come out in the light sooner or later, and later could be detrimental to the trust in the partnership as well as to both of our financial well being.
4. Establish the “Rules of the Game”
___ We are both believers in creating “Rules of the Game” – or policies for our partnership.
___ We have compared our values and found that we are not on opposite ends of the spectrum in what we believe.
___ We know that one of the “Rules of the Game” is to focus on what works.” In other words, each of us has to “get off” our position when something we are doing clearly is not working. Put simply, if there is something not working in the partnership or in the business, we agree to look at it and correct it.
5. Get clear on goals
We have thought about the following and each of us has answered…
___ What are the goals for the business relationship?
___ Why have you chosen to do business together?
___ To learn?
___ To network?
___ To team up with someone that has attributes that you don’t have?
___ What are our financial goals?
___ How much money we want to make together.
___ If we want to sell the business after a certain period of time?
___ If we want to have financial independence out of the business?
___ If we think combining your strengths will give you an advantage over what you could do alone?
___ If it is to take advantage of our differing styles?
6. Where is the money coming from? and who is going to manage the money? We have discussed what Money Habits will be important to each of us and know…
___ Where the money is coming from to capitalize the business.
___ What “learning experiences” each of us has had around money.
7. Financial habits
___ We have looked into my own and my partner’s habits to see…
___If they are similar
___ If each of us save, tithe and invest part of their profits?
___ If we can be confident that we are being mutually responsible and taking care of our selves financially?
___ If we can be confident that the other will not put pressure on the company later to handle any financial obligations they may not be able to meet.
8. Get clear on your lines of communication – We have discussed and know…
___ How frequently are we going to communicate?
___ How are we going to work together?
___ Are we both in the office?
___ Is one on the road and the other “home” in the office?
9. Who is going to do what?
___ What are the clear job descriptions of each partner?
___ Who is responsible for what?
___ Are your personalities complementary? Or is one better at one job than the other?
As you’ll learn, being on the same page, or in alignment, is absolutely essential to create synergy and the results you want in your business. Again, if you missed the first post or just want a refresher, read here my first post in this series of creating a Business Relationship Agreement.
I’d love to hear your comments, I do read them, and I look forward to providing value to your business, your family, your personal relationships and in creating the life of your dreams.
With loving thoughts,
photo credit: U.S. Department of State