Dangers of a Threesome

5 thoughts on “Dangers of a Threesome”

  1. #1 & #3 points are really really important to follow, after hearing your experience Kevin.

    As you state, if it was you who coined the idea, it is very very important to keep the controlling voting rights with you (unless you were partnering only with your friend, in which case it was ok to be equal controller). But as a third person enters the equation, who is a 3rd degree apart from you, it was probably best for you to keep the voting interests with yourself.}

  2. Good cautionary tale.

    A buy-sell agreement is a wonderful thing. The best (and simplest) buy-sell agreement that I’ve seen is basically this:

    Party A wants to buy out Party B. The initiator (Party A) has to make a buyout offer. Party B has the OPTION of either accepting the offer or buying the shares of Party A (the initiator) at the offered price.

    I’d also suggest a 3-6 month “test the waters” phase where both parties have a low-cost “out clause”…

    One thing I’d also throw out. As an entrepreneur, you have to surrender some control if you want partners/ co-founders. If you aren’t willing to surrender/share control, be prepared to shell out more money and hire paid employees/contractors (who I’m sure will happily execute on your vision).}

  3. After all is said and done, being able to let go is probably the best thing you can do in situations like this. The more partners-in-crime you have, the more you can have help in taking things to the next level which I think is much better than trying to do things by yourself. But I think if you’re a serial entrepreneur, you’ll eventually experience such a situation, and to be able to let it go will allow you to move on and not let it drive you crazy in frustration for the rest of your life…}

  4. When ever you start a venture with someone else, you have to consider what the consequences will be. This story reminds me of the 8020 media story I read recently. A well-run business isn’t a democracy, you can encourage and reward innovative thinking, but putting control in the hands of two many people is always risky. Hope you have better luck with your next project.}

  5. A very successful entrepreneur once told me that when it comes to business partnerships, he prefers them to be odd-numbered and under three.
    Not possible when you are starting a business but I am sure on your next startup you will think through attracting “partners” while maintaining more control.
    Ron}

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