The book "The Partnership Charter: How to Start Out Right with Your New Business Partnership

(or Fix the One You're In)" by David Gage focuses on the importance of relationships in business
partnerships. The author argues that business is 80% psychology and 20% technology, and that
emotions cannot be avoided in business. The book emphasizes the importance of trust, mutual
respect, and ongoing communication in partnerships. It provides guidance on choosing the right
partner, getting to know them, and creating a solid foundation for the partnership. The book also
covers topics such as exit strategies, business plans, conflict resolution, and joint ventures. The
author stresses the importance of recognizing the ripple effect that occurs when partnerships fail and
putting personal gain aside in favor of making the partnership and business work well. Partnerships
offer many advantages, including shared risks and responsibilities, aligned individual strengths, and
the end of isolation. However, it is important to find the right partner, which requires determination
and a clear picture of why a partner is needed and what each person can bring to the table. Trust is
the most important element in a partnership, and it is built on openness, transparency, and
commitment to each other and the business. Before seeking a partner, it is important to be clear
about motivations, what is being offered, and what is being sought. To find a partner, it is
recommended to tell everyone, attend meetings in the field, connect with networking groups and
associations, and check online resources such as CoFoundersLab. Choosing the right partner is the
first of three crucial components in building a successful partnership, and it is important to take the
time to find the right person. Marriage and business partnerships share many similarities, including
the need for commitment, communication, trust, and shared vision. However, choosing the right
partner is crucial for success in both areas. Rushing into a partnership without getting to know each
other well enough can lead to misunderstandings and problems down the road. Molly and Sam, who
opened an Asian fusion restaurant in Montreal, faced issues due to a lack of communication and not
behaving like true partners. However, with coaching, they learned to openly express their feelings
and respect each other, leading to a successful business. On the other hand, Theodore and Sandra,
who opened a salon in Chicago, rushed into a partnership based on complementary skills and desire
to have their own business. However, Theodore's resentment towards Sandra's family obligations
led to verbal abuse and the eventual closure of the business. Choosing the right partner and
maintaining good communication are essential for success in both marriage and business
partnerships. The success of a business partnership depends on three essential characteristics:
communication, transparency, and responsibility. Partners must be willing to communicate honestly
about everything and take 100% responsibility to ensure that the business has everything it needs.
Trust, respect, and likability are also important traits that should evolve as partners get to know each
other. It is crucial to choose the right partner and commit to open and honest communication to
maintain and grow the relationship. When communication breaks down, partners should keep the
dialogue open and friendly to discuss objections as they occur. Playing the blame game leads to
deteriorated relationships and unproductive outcomes. A good partnership always focuses on the big
picture and reinforces the "I've got your back" sentiment. Partners must be willing to work through
their issues and seek coaching if necessary to repair the partnership or plan for a more friendly and
respectful exit. Effective communication, transparency, and responsibility are essential qualities for
a successful business partnership. These qualities can also carry over into personal relationships.
Miscommunication is common in today's multi-media environment, where emails and texting are
relied upon heavily to communicate. It is important to be open and vulnerable to avoid
misunderstandings. Online presence, including websites, social media profiles, and blog posts, is
also important in building relationships with potential clients. Clear communication, trust, and
openness are as important in the cyber world as they are in person. It is crucial to take the time to
court potential business partners to become familiar with their personality, preferences, values,
work styles, and habits, just like one would with a potential spouse.
The success of a business partnership depends on transparency, trust, and open communication.
During the dating period, it is important to be honest about personal goals, strengths, weaknesses,
and what each partner is looking for in the partnership. Regularly scheduled meetings should be
held to discuss any issues that arise and to ensure that both partners are aligned in their vision for
the business. It is important to be transparent about finances, spending habits, risk tolerance, and
family support. Avoiding confrontation can lead to bigger problems down the line, so it is important
to address any issues as soon as they arise. The goal is to be as transparent as possible, sharing
information that will affect the business and that would not necessarily be shared with a stranger.
By being open and honest, partners can ensure the ultimate goal of a long life of happiness and
business success. The success of a business partnership depends on the compatibility of the
partners. Before entering into a partnership, it is important to discuss personal obligations, health,
previous work history and experience, previous businesses and partnerships, strengths and
weaknesses, skills, talents and interests, annoying traits, work style, goals and priorities, values and
work ethic. Partners must be on the same page from the beginning and should not assume that they
are thinking the same thing just because they have the same enthusiasm for opening a business. It is
also important to discuss whether complementary skills are required or if partners can have the
same skills. The dating process helps partners develop a comfortable mode of communicating,
which improves with practice. Partnerships can end when values change, and it is important to have
a buy-sell agreement as the first step in an exit strategy. The success of a partnership depends on the
partners' compatibility, communication, and shared vision. When considering a business partnership
with friends, relatives, or spouses, it is important to follow the same process as if you were getting
to know a potential partner for the first time. Although you may already know the person, it is
crucial to clarify expectations and understandings from the beginning. Partnership agreements play
a vital role in any business partnership, including those with friends or family members. It is
imperative to write a clear agreement, even if you know your partners well. Working with someone
you already know in your personal life has its appeal, but it does not mean that you know how they
would behave in a business setting. Clarifying and strengthening your relationship is still the key to
success. It is also important to consider including family members in your business and to ensure
that you and your partner(s) share the same opinion. The success of a family business partnership
depends on shared ethics, values, trust, respect, flexibility, and the ability to talk about everything.
The article discusses the challenges and benefits of partnering with friends, spouses, and relatives in
business. It highlights the importance of setting clear boundaries between personal and professional
relationships to prevent communication and relationship disruptions. The article provides examples
of successful partnerships, such as the Lessers, who established a simple rule that keeps their
successful business relationship and family time separate. Another example is Sydney and David,
who own a successful Los Angeles firm that focuses primarily on nonprofit public relations and
advocacy campaigns. They set regularly scheduled meeting times for business-only topics and have
enormous respect for each other's talents. The article also discusses the challenges of working with
a spouse, as all the trials and tribulations of the business are easily brought home in a double dose.
It suggests that setting clear boundaries between work and married time can help prevent
communication and relationship disruptions. Overall, the article emphasizes the importance of
communication, trust, and respect in successful partnerships. Nami and LaMae have different
backgrounds and work styles. Nami is impulsive while LaMae is trusting and takes time to find a
way to make something work. They both have different decision-making styles.

The success of a partnership depends on several factors, including shared values, effective
communication, and a willingness to compromise. Partnerships with friends, family members, or
spouses require even more careful consideration and boundary-setting. It is important to evaluate
whether each partner has the necessary skills and passion for the business, and whether their visions
and values align. If there are disagreements, it is crucial to find ways to compromise and maintain
respect for each other. However, if it becomes clear that a partnership is not working, it is better to
walk away before the situation becomes contentious or destructive. A successful example of a
partnership is Larry Flax and Rick Rosenfield, who have partnered together three times, including
co-founding California Pizza Kitchen. Their partnership is based on mutual respect and
understanding, and they have been able to successfully navigate challenges and changes in their
business ventures. The chapter discusses the importance of setting a solid foundation for a business
partnership. It emphasizes the need for effective communication and trust-building during the
honeymoon phase of the partnership. The chapter also highlights the importance of formalizing the
partnership and mutual business goals on paper. The author recommends completing four
documents, including the Business Partnership Agreement Template (BPAT), a Partnership
Agreement (PA), a Business Plan, and a What If Scenario Handbook. The BPAT is the most
important document to solidify the partnership relationship and create a strong foundation for the
business. It guides partners to have difficult conversations, decide on a method to resolve conflicts,
and answer questions they may not have thought about asking. The chapter stresses the importance
of investing enough time to think through everything and record it in the BPAT to avoid conflicts
and disagreements in the future. The Business Partnership Agreement Tool (BPAT) is a document
that helps business partners make decisions about their business. It guides partners through
discussions about their vision, mission, values, goals, and more. The BPAT helps partners clarify
and write down their decisions on a deeper, more committed level. It also helps partners decide who
will be responsible for what area of the business, how conflicts will be resolved, and what the
strategy will be for planned or unplanned exits. The BPAT should be honest, open, friendly, and
clarifying to avoid misunderstandings, forgetfulness, and making incorrect assumptions. The BPAT
can also be used in a legal partnership agreement, saving some of the hourly costs with a lawyer.
The BPAT can deepen the partnership relationship and put in place a true mode of communication
that will be ongoing. The BPAT covers finances, spending patterns, personal debt, and risk
tolerance, which are a major foundation for a partnership. The success of a business partnership
depends on commitment, communication, transparency, and responsibility. Partners should
communicate regularly and have a strategy meeting at least once a week to ensure everyone is on
the same page. A mission statement and vision statement should be agreed upon and written into the
business partnership agreement to guide partners in the short and long term. The vision statement
should be inspiring and inform why partners are doing what they do. Personal visions should also
be in sync with the vision of the business to ensure all parties are aligned for the long term. The
mission statement defines the measures and standards by which all decisions are made and contains
the core values and principles set forth by the owners. It answers questions about what the business
does now, for whom, how, and why. The mission statement keeps the business on track and assures
focus. Team members and employees should have copies of the mission statement for the same
reasons. The BPAT (Business Partnership Agreement Tool) is a crucial document for any business
partnership. It outlines the roles and responsibilities of each partner, as well as the goals and vision
for the business. Other important elements of the BPAT include the type of business entity, equity
ownership, operations management, conflict resolution, intentions regarding hiring family, regular
meeting schedules, and exit strategies. It is essential to have an exit strategy in place from the
beginning, as unexpected events can occur that may require one partner to leave the business. A
well-crafted exit strategy should be written to enhance the relationship between partners and protect
the business's future. It is crucial to involve all partners in creating the agreement to avoid potential
legal battles in the future.

Planning a winning exit strategy is crucial for any business owner. It is essential to consider various
factors such as retirement, death, divorce, incapacity, and unsolicited buyouts. Having a buy-sell
agreement in place is a good start. It is wise to have a long-term vision and an idea of where you
would like to land after leaving the business. Compromise becomes possible when listening is
focused on hearing the other person's reason for not wanting to sell. It is essential to have a 'go-to'
plan for the day after leaving the business. Periodic assessments of the exit strategy can help value
the business and use that information as a basis for further growth. Consulting with experts in law
and insurance is prudent to plan for various scenarios such as key man life and disability insurance.
Planning a winning exit strategy will aid in envisioning the business when you are ready to leave it.
A partnership agreement is a crucial document that allows partners to structure their relationship for
the long haul. It establishes management and financial responsibilities for each partner, outlines
what will happen in the event that someone leaves the business, and covers many other crucial
issues. While a handshake and good intentions may seem sufficient, a written agreement is
necessary to avoid misunderstandings and ensure that everyone is on the same page. Financial and
other contributions by the partners, equity shares in a business partnership, restrictions of authority
and expenditures, dispute resolution, and exit strategies are the five key elements of a partnership
agreement. It is important to avoid using free downloadable boilerplate partnership agreements
from the internet, as they often leave out important elements and have mistakes. A strong
foundation laid by the Business Partnership Agreement Template (BPAT) is necessary before
drafting a legal partnership agreement with the help of a lawyer. A partnership agreement is a legal
document that outlines the terms and conditions of a partnership. It is essential to have a partnership
agreement to prevent misunderstandings and disputes between partners. The five key elements of a
partnership agreement are the purpose of the partnership, the duration of the partnership, decision-
making processes, partner duties and responsibilities, and dispute settlement strategies. The purpose
of the partnership should be clearly defined, and the duration of the partnership should be specified.
Decision-making processes should be outlined, and partner duties and responsibilities should be
assigned based on each partner's strengths and weaknesses. Dispute settlement strategies should
also be included in the partnership agreement. A partnership agreement can prevent bankruptcy and
closure of a business, as illustrated by the case studies of Allison and Stanley and Gregory and
James. It is never too late to create a partnership agreement, as demonstrated by the case study of
Marge and Lori. The author emphasizes the importance of having a solid business plan before
launching a company. Many entrepreneurs make the mistake of jumping into business without a
plan, which can lead to failure. The business plan should be a living document that is unique to the
business and is revised regularly. The author provides a typical business plan outline that includes
an executive summary, business strategy, financial plan, marketing strategy, community
participation, and areas of responsibilities and tasks. The executive summary should include the co-
owners' names and addresses, history of the firm, mission and vision statements, products and
services offered, target market, competition, and financial goals. The business strategy should
discuss the competitive edge, feasibility studies, and processes used. The financial plan should
include startup or expansion capital needs, resources, assets and liabilities, staff requirements, and
projected income, expenses, and cash flow. The marketing strategy should include the marketing
budget, sales goals, marketing and sales strategies, pricing, advertising, promotions, and personnel.
The community participation should discuss supporting a specific cause or non-profit organization.
The areas of responsibilities and tasks should list what each partner will be responsible for and the
number of employees required. A business plan is essential for any partnership, as it outlines
responsibilities and goals. It should be concise, clear, and up-to-date, with an easily accessible
format. Partners must be aware of what is happening in the business, even in areas assigned to their
partner. It is important to prepare for unexpected events by creating an emergency plan, which can
be completed after or at the same time as the business plan. This plan should enable partners to
confer on unexpected events and their mutually agreed-upon solutions to avoid crisis conversations.

Chapter 10 of the book emphasizes the importance of preparing for unexpected events and crises in
a business partnership. The chapter provides prompts for discussion and decision-making on
various scenarios, including finance, employee issues, personal life, and exiting. The authors
suggest that having a plan in place for these scenarios can provide a starting point for dealing with
crises and can help prevent them from happening. Chapter 11 focuses on finding a good working
rhythm to ensure ongoing communication among partners. The authors stress the importance of
regular meetings to clarify, plan, and strategize. They suggest daily meetings for checking in and
discussing new problems, weekly meetings for deeper discussion, and monthly meetings for
reviewing progress and setting goals. The authors also emphasize the importance of active listening
and understanding in communication and suggest using available technology for remote meetings.
Overall, the chapter emphasizes the importance of ongoing communication and planning for
success in a business partnership. Effective communication is essential for successful partnerships.
Regular checkups, at least yearly, can help identify blind spots and improve communication. An
outside consultant can help mediate these checkups and provide an objective perspective. Good
listening skills are crucial for effective communication. Active listening involves listening deeply,
respecting the other person's point of view, and being open to changing your own perspective. It's
important to get rid of the idea that you have to be right and to listen with an open mind. Actively
participating in the conversation by giving positive feedback, repeating back what you heard, and
asking questions when things are not clear can help improve communication. Allowing for the
possibility that you have something to learn from the other person can also lead to better ideas and
outcomes. Regular meetings with clear agendas can help maintain a regular rhythm and focus on
executing the strategic plan and mission on a daily basis. Effective communication is essential for
successful business partnerships. Active listening is a crucial component of communication, which
involves fully engaging with the speaker without preparing a response. It is important to express
thoughts and feelings honestly and respectfully. Brainstorming sessions can be conducted without
criticism, and humor can be added to conversations. Compromise is also valuable in partnerships, as
it helps keep communication lines open and effective. Partners should keep the big picture in mind
and adopt an attitude of flexibility. Regular meetings with a meaningful agenda can help partners
rediscover their shared desires, dreams, and goals. In one example, two partners had different work
styles, but compromise helped them focus on the end result and overlook their differences. In
another example, regular meetings helped two partners rediscover their shared goals and improve
the efficiency of their business. Effective communication and compromise can lead to a more robust
bottom line. Partnerships in business, like marriages, can experience conflicts that can either be
resolved or lead to the end of the partnership. When conflicts arise, it is important to seek an
objective expert to facilitate conversations and help bring about resolutions before it is too late.
Conflicts can be utilized as motivators for creating positive change, but when disgruntled feelings
turn into ongoing conflict, emotions override the issue, and thinking and speaking clearly about the
situation may become impossible. Red flags that indicate a partnership relationship is potentially in
trouble include a change in vision, one partner slacking off or overworking, and a stalemate causing
tension. It is important to address these issues and clarify what is expected of each partner to avoid
the downward spiral that can lead to the end of the partnership. Seeking help to facilitate the
conversation may be necessary. The success of a business partnership depends on the ability of
partners to resolve conflicts effectively. Conflict prevention is the best solution, and this can be
achieved by having clearly written expectations, goals, and crisis management plans in place.
Regular meetings should be held to preempt problem areas before they erupt. When a conflict
arises, partners should count on their commitment to the success of the partnership and handle it
together. It is important to have resources available, such as an emergency fund, designated coach,
or other consultants dealing with specific needs. Listening is the most important skill in knowing
how to communicate to prevent and resolve conflicts. When a conflict erupts, partners should
remain calm, analyze the situation, review former successful resolutions, evaluate the repercussions
of the crisis, and examine options.

The article discusses the importance of successful partnerships in business and provides guidance
on how to achieve them. The author emphasizes the need for trust, respect, transparency, and
communication between partners. The article also highlights the importance of choosing the right
partner, creating a solid business plan, and having an exit strategy in place. Additionally, the author
suggests that businesses should consider aligning themselves with a nonprofit organization or
community initiative to give back to the community and expand their market reach. The article
concludes with a summary of the essential keys to successful partnerships, including choosing the
right partner, making decisions together, having a solid business plan, preventing conflicts, and
having an exit strategy. Business partnerships are essential for individuals to prosper and achieve
their dreams. They provide a means of livelihood, a sense of community belonging, and the
opportunity to take care of loved ones. However, forming a partnership requires careful
consideration and commitment, as the repercussions of failure can be immeasurable. It is important
to keep everyone in mind when making decisions and commitments, as the outcomes will affect
more than just the partners involved. This step-by-step guide provides everything needed to make a
partnership work, from considering it to living it day in and day out.