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1 Friends as Business Partners Steps to Take to Ensure an Ongoing Successful Relationship 1. Friends 2. Write It Down 3. Steps

2 Friends Beware Friends opt to co-found a business Mutual trust & respect Relationship is great at first, sometimes for a number of years Problems occur One dies or becomes disabled One wants to spend less time with business Disagreements over strategy or finances www.TheResourcefulCEO.com

3 Friends Age Doesn’t Matter Saw similar issues at M&A boutique/advisory firm as saw as college R.A. Friends did not want to sign anything, staying they know & trust one another. Friends take one another for granted, taking liberties wouldn’t take with strangers. Boys/girls, men/women, didn’t/doesn’t matter. www.TheResourcefulCEO.com

4 Put It In Writing! Amazing how two people in the same conversation have completely different perceptions and interpretations Why companies create meeting notes. Document discussion & terms All will be in the same page. www.TheResourceful.com

5 Buy/Sell Agreement Step 1 Create a Buy/Sell Agreement or a Shareholder’s Agreement. Clearly delineates what happens in a break-up, death, offer-to-purchase, other scenarios. Addresses issues friends rarely consider. Will help resolve conflict when it arises later on. www.TheResourceful.com

6 Delineate Who Is in Charge Step 2 Clearly delineate who is the highest ranking person in the company. Who has overall authority? May have one clear decision-maker overall. Who is responsible for what? What are those responsibilities? Final decision may be determined by who is in charge of the area. Both cannot be decision maker for all things at all times. Highly inefficient. Leads to unnecessary arguments. www.TheResourcefulCEO.com

7 Limit Business Discussions Step 3 Place limits on business discussions. Moderately similar to spouses partnering. Maintain friendly activities and socializing with NO business discussed. www.TheResourcefulCEO.com

8 Additional Information: Solving the Capital Equation: Financing Solutions for Small Businesses Available on Amazon Getting Started

9 Thank You! Tiffany C. Wright Follow my blog, The Resourceful CEO: http://www.TheResourcefulCEO.com The Resourceful CEO Toca Family Business Services Contact Us