The Hidden Danger in Every Business Partnership

In my interview with Berman Fink Van Horn business attorney Bill Piercy on 𝘛𝘩𝘦 𝘗𝘳𝘪𝘤𝘦 𝘢𝘯𝘥 𝘝𝘢𝘭𝘶𝘦 𝘑𝘰𝘶𝘳𝘯𝘦𝘺 podcast, he challenged a fundamental assumption most of us hold: that business partnerships should be "forever" arrangements.

His counterintuitive advice? Start with the end in mind. Build exit strategies into your partnership from day one.

"The default ought to be that within five years, one of us buys the other out, we shut this down, or we sell it, unless both agree to continue," Bill explained.

It's profound wisdom. Having worked as an advisor or interviewed hundreds of business owners, I've witnessed the painful toll of partnerships that persist beyond their expiration date.

Bill suggests watching for these warning signs:

• Financial statements suddenly stop being shared

• Regular partner meetings mysteriously disappear

• You're no longer copied on important communications

• Decision-making becomes increasingly one-sided

Bill discussed the cost of inaction with a sobering response: "You're losing opportunity, time, money, and not doing your best work."

His most valuable insight? You have three choices: endure it, end it, or fix it. Most choose "endure" because we hate change almost as much as confrontation.

If you're grinding your teeth thinking about your business partner, consider making a change while you can still chew, Bill says. The opportunity cost of staying in a bad partnership often exceeds the cost of getting out.

If you're considering a business partnership or already in one that's showing "yellow flags," I strongly encourage you to listen to this episode. The conversation might save you years of frustration and significant financial, professional and even personal loss.

You can find this show on your favorite podcast app or by following this link. The show archive for The Price and Value Journey podcast can be found here.

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Are you frustrated by your pricing? Need help articulating your value? Do you need a better way to identify and close your best-fit clients? Do you want to restore the joy you used to have for your business? I may be able to help you.

I’m John Ray, a business consultant and coach, author, and podcaster. I advise solopreneurs and small professional services firms on their two most frustrating problems: pricing and business development. I’m passionate about how changes in mindset, positioning, and pricing change the trajectory of a business and the lifestyle choices of its owners. My clients are professionals who are selling their expertise, such as consultants, coaches, attorneys, CPAs, accountants and bookkeepers, marketing professionals, and other professional services practitioners. Click here to learn more or contact me directly.

I’m the author of the national bestseller, The Generosity Mindset: A Journey to Business Success by Raising Your Confidence, Value, and Prices. The book covers topics like value and adopting a mindset of value, pricing your services more effectively, proposals, and essential elements of growing your business. The book is available at all major physical and online book retailers.