This episode is brought to you by the 2017 TwoBrain UK Summit, November 11-12 at Thames CrossFit in London, England. Register here!
Episode 81 – Partnerships
Do you REALLY need a partner?
I would describe CrossFit as an owner/operator model. But many of us need a little extra push or need money at start up; or a security blanket; or just a kick in the butt. So we take a partner.
Today we talk about how to start a partnership; when you actually need a partner; and how to get out of a partnership gone bad. Take good notes as this episode could save your sanity and your partnership!
Be sure to download the Two-Brain Business Sample Shareholder’s Agreement. This will help your partnership get off to the right start!
Meet the needs of your growing membership base, outfit a new facility, or refresh existing inventory with Rigquipment!
In this Interview:
- My partnership experiences and lessons learned
- What are the first steps to starting a partnership?
- How to get out of a bad partnership?
- What role does the operating partner have within the partnership
- Why you should use a thirds party to adjudicate the breakup of a partnership
- How to define profit within your business and partnership agreement?
2:54 – Partnerships Introduction
3:37 – Chris Cooper’s partnership story and how he started his first gym
9:33 – First step to starting a partnership: Defining the roles and tasks of each partner
10:29 – Second step to starting a partnership: Assign a value to each item a partner brings
11:55 – Third step to starting a partnership: Defining what a perfect day for each partner is
13:11 – Fourth step to starting a partnership: Discuss how each partner is to be paid
13:42 – What is profit?
16:35 – Final step to starting a partnership: Defining how a partner exits the agreement
18:03 – Mapping out how decisions are made in a partnership in a fair manner
19:34 – Having a plan for everything that happens in advance
21:12 – Agreeing on pricing when engaged in a partnership
23:28 – Creating a feedback and accountability loop within your partnership
29:29 – The role of the operating partner within a partnership agreement
31:05 – Let’s say it’s time to get out. How to exit a partnership agreement.
34:57 – What to do when you have less money than your partner
37:42 – What to do when you have more money than your partner
41:23 – How to end a partnership when no agreement is in place
44:12 – Signing a separation agreement when ending a partnership
45:18 – Using a third party to adjudicate the breakup of a company
48:35 – Two-Brain UK Summit Announcement