First, watch out when one partner brings in another person as a third “partner” without proper due diligence. In our case, this third person talked a great game, then ultimately did nothing – or at least failed to work towards (and meet) objectives that were part of the overall plan. This seriously compromised the business relationships and ultimately the business.

The second thing I learned was that with family, you sometimes have people who don’t value the effort put in by others during the bootstap phase. In our case, certain partners did not know how to properly value or measure the overall contributions of other partners. For example, when the start-up team is busy building the framework for the business – writing plans, defining process, allocating resources, etc. – there is a certain intrinsic value that this effort holds which would amount to several thousands (if not tens or hundreds of thousands )of dollars if performed by attorneys, accountants and professional consulting groups.

Beware the partner who attempts to micro-manage other partners as if they were employees, and who does not see this value, but rather only knows how to value the time spent at the weekly status meeting.

I have since learned from this mistake and found other business partners myself – those who don’t expect you to punch a clock when starting a business.

And #14, even with a “separation agreement”, you could still be in for trouble. I paid a corporate lawyer for a shareholders agreement containing a shot gun clause. When it was needed I found out that his wording totally contradicted the entire premise of a shot gun clause. The lawyers walked away with a hefty sum before I became the sole owner. My advice; read it and make sure you understand it. If you don’t, take it to someone else who does before you sign it. When it comes to partnerships, it is probably one of the most critical steps in setting up a business.

This can be a big one, and one that I make ALL the time!

Only make promises that you can follow through on both quickly and easily, credibility is huge in any business, and to keep yours, you just gotta follow through on all your promises!

Just remember to promise to other people just enough where you can make everybody happy and still get your own work done, and you’re golden.