Haven’t you also had partnerships—whether professional or personal—that just didn’t go quite right? Where you felt like the other person was taking advantage of you? Or where you yourself were perhaps accused of something you considered completely unfair?
Why is that?
My theory: it’s mainly because expectations and goals aren’t discussed openly and honestly from the outset. And, yes, costs and the distribution of the fruits of success, too.
I’ve witnessed quite a few negotiations involving founders in which both sides spent hours talking with great enthusiasm about their products and services, the state of the world, personal philosophies, and the weather. They got along well and were in agreement—but not on who was supposed to do what, when, and for how much. Or who would receive what share for what contribution. They hadn’t even broached these issues, let alone thought them through properly!
This behavior is often driven by the fear of losing a promising partnership—or of never even being able to start one—by asking too many “uncomfortable questions.” But in my opinion, this is an unfounded fear. Or rather: if it turns out to be true in a particular case, then consider yourself lucky to be rid of the partnership before real problems arise. After all, anyone who isn’t willing to speak openly with you will sooner or later cause significant trouble. At the same time, no partner wants to enter into a partnership with someone who understands so little about business that he or she refuses to negotiate the essential points. So by “not discussing” these matters, you may very well lose face—and, for that very reason, lose the partnership.
I’ve come to prefer getting straight to the point rather than holding back too long out of politeness, and I’ve had good results doing so. It’s never worth avoiding the important issues!
So when it comes to your collaborations, take the plunge and boldly address the critical issues.
For clear agreements, you don’t even need legal advice at first. Start by clarifying your own ideas. Common sense is usually enough—and a healthy dose of skepticism goes a long way: where are there ambiguities, where are there gaps in the agreement, and who could bill whom for what wasn’t “actually” agreed upon? Once the work starts to pay off, who could terminate the contract to potentially profit alone? Feel free to get creative and also consider where you yourself might be able to take advantage of the partnership (of course, you don’t want to do that, but think about it anyway). Actively look for potential problems. Then address them openly and find solutions together. Take your ideas to a legal advisor and get help drafting your planned agreement. This benefits everyone, and most importantly, the lawyer will know exactly what you really want to achieve.
Be sure to put your trust in the new partnership. But don’t be naive.
As always: Feel free to ask us about partnerships and the pitfalls involved. Together, we’ll find fair solutions.
Best regards and happy collaboration!
Yours,
Ulrike Hudelmaier
