Before starting a business partnership, reach a consensus on these 10 questions.

1、Do we share the same goals?

Money is often a common motivator, but the key discussion lies in how much money one wants to earn, how badly they want it, and the relationship between money and other life goals (such as work-life balance). Business partners may have vastly different financial situations. If two people are starting a venture together and one of them is financially secure, they might view the endeavor as a hobby. However, the other person, lacking financial security, may be heavily dependent on the venture’s success. This initial disparity can lead to tension in the relationship.

2、How intense is our work commitment?

It’s natural for two individuals to have different perspectives on work intensity (e.g., hours worked, work during evenings or weekends). During the excitement of exploring a potential partnership, people may hesitate to ask questions like, “How many hours should we work each week? Is it acceptable to send work-related emails at night or on weekends? Will we work during vacations?” Breaking the ice and reaching a clear agreement on work intensity is crucial. Equality does not always mean fairness, as differences in work habits can be compensated through other means, such as compensation packages.

3、How do we assess contributions?

For example, in a clothing company, one partner may handle design, while the other oversees production and sales. Although the company succeeds, both partners may feel undervalued, causing tension. “Without my designs,” one might argue, “we would have nothing.” “If I didn’t manufacture and sell these clothes,” the other might counter, “your exceptional designs would be worthless.” People tend to overestimate their contributions, but partners need to recognize that all contributions are important and that no one is incompetent.

4、How do we approach difficult decisions?

Entrepreneurial partnerships inevitably encounter moments requiring tough decisions. It’s best to discuss decision-making processes before these situations arise. Many entrepreneurs allocate decisions in different areas to specific partners. For instance, one might have the final say on market-related decisions, while the other handles personnel appointments. It’s crucial to establish what happens when, in difficult and high-risk decisions, partners strongly disagree.

5、How do we handle conflicts?

When facing emotionally charged disagreements, some individuals are comfortable, while others may feel fearful or anxious. Before the first serious conflict arises, it’s essential to assess each other’s conflict management styles. One partner in a consulting firm, for instance, preferred calm, controlled, and respectful interactions due to her upbringing in a less healthy environment with many conflicts. In contrast, her business partner believed that conflicts were settled through shouting. They eventually found middle ground and established clear boundaries. When dealing with an issue that can’t be resolved, both parties should seek mutual agreement and open communication, rather than harboring resentment.

6、What is our strategy?

Core business strategy may be a rational business question, but it can still cause division among partners due to differing interpretations. A good strategy often involves making tough decisions, such as saying “no” to things that some partners find exciting or even essential. These issues might not surface until later, making it essential for partners to foresee and address them in advance. Related questions include how we adapt when plans fail or circumstances change.

7、Where does inequality exist?

“Equal partners” is a social nicety. In reality, every partnership harbors inherent inequalities—some substantive, such as relative contributions, and others interpersonal, such as power disparities. The challenge is maintaining trust and commitment while acknowledging these inequalities. It can be helpful to directly ask, “Are we truly equal partners?…or is this a different kind of working relationship?”

8、How are interests distributed?

Interest distribution is often the trickiest issue. It involves fairness, respect, and practical livelihood. Families of those involved may also weigh in. Moreover, it is a sensitive topic for most, similar to politics, religion, or sexuality. Another key principle regarding profit sharing is to determine what is more important than money for us. Some partners choose to evenly distribute all profits, regardless of contribution, to preserve the partnership. It’s one way to address this issue.

9、How do we keep track?

This may seem like a minor matter, but proper record-keeping is crucial. There are two reasons: first, people may believe they’ve reached consensus on a particular issue but discover differences when they put it in writing. Second, people forget, and different individuals may have different recollections of the same matter. Clear agreements can help partners easily recall their decisions when needed.

10、How do we exit?

All partnerships eventually come to an end, whether with cheers or tears. It’s best to think ahead about who gets what, who owns what, and what happens if only one or two partners wish to exit. Will those departing take knowledge, relationships, or other resources they brought into the partnership? Are there communication protocols or non-compete agreements when they leave? Clear agreements can facilitate amicable partings and prevent prolonged legal disputes and friendship ruptures.