Having an agreement in place before you embark on a business project – or a lifetime together – is a good idea. Carol Roth shares her thoughts on the three components that should be included in a partnership prenup, and why writing this down can make your business run more smoothly and be more successful over the long term.
Who brings what?
What is each person bringing into the partnership? It could be capital, industry knowledge, intellectual property, connections, or a willingness to invest time. Or maybe a combination of these.
Who does what?
Be very specific and define the activities everyone will be responsible for clearly so there will be no surprises. What one person calls marketing activities, another person might consider sales activities, as one example.
Who owns what?
If you bring something into the business, do you get to keep it on the way out? This could be a trademark, email list, copyright, methodology, patent, etc. …