# 3 way partnership...



## Swisha (Mar 31, 2011)

Hey guys,

I am going into a clothing line/ graphic business with a couple close friends of mine. We all have graphing experience, good connections, and promotional abilities. 

The thing I'm worried about is egos. We have none currently but I constantly read about friends being torn apart when it comes to business and money. Because of this, I want to set up a contract for us. 

My question is, what types of things should I included in the contract? I have read samples online but I was wondering if you guys had any input on things you wished you would have put in it. 

Thanks in advance.


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## EnMartian (Feb 14, 2008)

A couple of things I know I wish had been hashed out before I entered into a partnership were responsibilities and how things would be dissolved if it didn't work out. Nailing down who is responsible for doing what gives you leverage if someone isn't holding up their end of the deal. Having an exit strategy already in place that everyone has agreed to means that things can be dissolved more easily if it comes to that.


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## Swisha (Mar 31, 2011)

Thanks for the tip. I will definitely keep that in mind


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## Big Al (Feb 3, 2008)

worse thing I ever did go in into a three way partnership, the other two ganged up on me and had me over big time, never again.


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## EDMFLAVOR (Aug 13, 2011)

I agree with Big Al, a 3 way partnership could be tricky because someone will always be by themselves while the other 2 agree on something. its then 2-1, where in a normal 2 way partnership, BOTH have to agree on something.


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## Big Al (Feb 3, 2008)

Specially as in my case the other two were crooks it transpired and nearly dragged me down with them till I conviced the agrieved third party I wasnt in on it and that was a bit of business your side of the pond importing and exporting cars in the late 70's. Fortunately the FBI nicked them as they had shipped cars that they had bought for a third party as an agent at auction across the state line and sold them on so it became an interstate crime, 3 months in the Boston Penn for two pretty white well spoken english boys was almost punishment enough!!!!! (Hey pick up the soap boy) but they also had to pay the third party full retribution for all his lost funds something we unfortunately dont do over here and that would have been construed as a civil matter. Apparently they went down all cocky and came out pale and besheveled a few months later!


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## Austin300 (May 24, 2009)

Going into business together will kill your friendships...


Contracts will just become an arguing point.


Only one Captain per ship and I have been over
that ocean once before.. NEVER again.


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## Big Al (Feb 3, 2008)

Agreed, I never went into any partnership deal since. Maybe 50/50 with the right person where you can cover for each other but not a three way split.


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## Swisha (Mar 31, 2011)

Lots of good info. It's given me more things to consider. I might just be the one left out of decisions...hmmm I have to rethink this one. 
I'm just not sure I would be able to do it successfully on my own. They are free most of the day and I am a full time college student


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## Big Al (Feb 3, 2008)

Well there you go you have answered your own question from the start you are not going to be on an even footing, how long do you think it will take before the other two start getting the needle that they are doing all the work while you are at college and start moaning (maybe with some justification) and plotting behind your back. Any partnership has to be equal, equal amount of money and effort put in.


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## ArmandoG (Oct 16, 2011)

partnerships rarely end well. So if you must, make sure all cards are on the table (in writing) so everybody knows to expect and there are few surprises.

Good Luck.


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## soCALkid (Aug 16, 2011)

I've never, in the history of my business experience, seen a 3 way ownership go the right way. The clothing company I own started off as a 3 way ownership. Turns out my good friends were also VERY lazy and did nothing important to support our business. In the end I had them sign out of their documents and took full ownership (since I was the only one doing anything anyway). Ruined my relationship with my 2 best friends at the time, but at the end of the day I'd rather that then be in debt 10k +. Be smart, a lot of people can't tell the difference between friends/family and business. I wish you the best of luck!


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## mikelmorgan (Nov 1, 2008)

Anything with two heads is a monster. So three heads is a real mess. A possible answer maybe to all three have their own business and share expenses. That way what you sell and create is yours and the same with the others. If everyone signs a lease for the expenses than they will have to deal with that. As far as partnerships someone will not pull their weight and expect and even share of the profits. If you have a partnership one of you needs to be the head of the business.


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