Protect yourself from your business partners

Whenever you get into business there's risk, it's unavoidable, but it's your responsibility as an entrepreneur and business owner to manage that risk. This is especially true if you're going into business with anyone, and I mean anyone!!If you go into business with your best friend or a family member, it is crucial that you protect yourself. Don't make the foolish mistake that I made, thinking because they're family they have your best interests at heart. Unfortunately, this is not the way of the business world, you will be discarded as quickly as you were promised the world.Don't put all your eggs in one basket just because you "trust" someone. It can be easy to get carried away and look at the positives at the beginning. Imagining all the good bits without appreciating the negatives is a sure-fire way to land yourself in disappointment central.Force yourself to be realistic, look at the negatives, expect the worst and manage your expectations.If like me going into business involves you quitting a career with multiple opportunities and a good wage, then don't do so lightly. I start 2018 with no support, having been made promises that were never kept. My family's wellbeing and the very home we live in is at stake.There are many ways you can protect yourself when it comes to business and I would suggest you take every single step to limit your exposure to risk.STEP 1 - DOCUMENTDo not make any agreements without documenting them. A foolish mistake, and yes, you've guessed it, one that I made. In my book A Business Odyssey, I talk a little more about this and how you can protect your business and more importantly yourself from these pitfalls.Whenever you have a meeting relating to anything to do with setting up the business, record it at the very least. Make sure you get a contract drafted between you and your partners, that way they are contractually obliged to fulfil any obligations that have been agreed upon.When setting up my partnership we made multiple agreements which were of course a factor in me accepting the proposal in the first place. At this stage, not a single promise has been kept, I have truly been tossed aside like a used tissue.STEP 2 – BRAND YOURSELFYou guessed it, it’s exactly what I’m doing here on this site, personal branding. Personal branding doesn’t mean you should sell anything, and it 100% doesn’t mean create a fake you. It’s about being you and putting yourself and your ideas put in the world.You can do this anywhere, I like a website which is why I created this, but you could grow your personal brand on Facebook or any other social media site. But it is important you have a personal brand, why? Well when your business has come and gone, you’ll still be here.I know it’s a negative thing to say, but realistically, given the odds of businesses succeeding – chances are you will outlast your business and not create the empire you crave. So, it’s important that once you move on to the next business or chapter of your life that you can take people with you and not have to start completely from scratch. Your personal brand is that vehicle.STEP 3 – ASSETSCreate assets, lots and lots of assets. Digital, intellectual, physical or any other form of asset you can create, make sure you do it.The content you produce is an asset, because it lives in the digital world, and it’s ever available to people and yourself to draw upon it, repurpose it and reuse it. Sure, it takes an initial time investment, but it will repay you for years to come.Other assets such as property and (long lasting) equipment will also continue to bring you value so it’s crucial you use your head and methodically collect assets as you progress through your business and personal journey.
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Published on January 04, 2018 03:14
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