I've read The E-Myth Revisited and I've heard Michael Gerber speak, but I have a business partner who has not and will not. I believe in my entrepreneurial vision for our company, but my partner is not convinced. He prefers doing technical work (which other employees should do) and he swears by the adage "If you want it done properly, then do it yourself." His attitude is definitely holding back our growth plans. Any suggestions?

Partnerships present challenges as well as opportunities. A partnership can potentially have profound impacts on your business, your role in the business and in your life. Entering into a partnership should not be done without careful forethought and attention to detail.

There is wisdom in the old business adage: "He who has a partner has a master." This may not be true in your case, but it highlights the point that in a partnership, some business questions will always require mutual evaluation before decisions can be made.

First and foremost, it is critically important that you and your partner agree on a single strategic objective for the business. (see Chapter 13 of The E-Myth Revisited for more on defining a strategic objective). Until you both are 100% committed to a single vision for the business, you will be working at cross-purposes. At best, it will be difficult to achieve your goals. At worst, you will end up distrusting one another and nothing will be accomplished. Make very sure that all partners are committed to a shared vision for the business, and that they agree on the direction in which the business should go.

Also important is definition of your individual roles in the company. Define these roles and their differing responsibilies as specifically as you can. Include in these job descriptions the sorts of decisions and actions each partner may take individually, and which decisions and actions will require agreement of the other partner. In general, strategic decisions that affect the business as a whole will require partner agreements, while tactical decisions within individual areas of accountability may be made alone.

If you and your business partner disagree on the shared vision or clear role definitions, then you will need to negotiate until either agreement is reached on these key points, or you agree to dissolve your partnership. Does this seem too harsh a choice? ...not when compared to working for years at cross-purposes, towards different objectives, with opposing management methods and different definitions of progress. Imagine the chaos that could erupt if you and your partner made separate, incompatible decisions regarding an employee or a customer. Multiply that disruptive potential by the number of your employees, the number of your customers, and the number of business cycles per year. This potential for trouble is reduced greatly if partners agree to work towards a single strategic objective for the company.

It's also important to get professional advice when constructing (or re-modeling) a partnership. We recommend you meet with a skilled corporate merger attorney and solicit his or her advice on the legal structure of the business. You will want a business structured to shield the partners from inappropriate liability, has maximum tax benefits, and with clearly-defined stipulations should one partner wish to sell their interest in the business. Defining important points clearly and comprehensively will minimize your exposure to unforeseen legal, financial and personal events.

Further Reading

Beating the Perils of Partnerships