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