| A person nearly always has some pretty large | | | | relevant is the business reaches a point where |
| dreams when they form a business. If the business is | | | | fundamental decisions must be made above and |
| one that will be owned by multiple people, it is vital that | | | | beyond what the original plan encompassed. |
| you make sure everyone has the same dream. | | | | At this point, the owners may have the same solution |
| A marriage is a commitment between two people. | | | | in mind. Often, they do not. When they feel differently, |
| Having developed a relationship over time, they are | | | | a divide can be created between the owners much |
| ready to say this is THE relationship they want to | | | | like two people growing apart in a marriage. As time |
| carry out for the rest of their lives. Unfortunately, many | | | | passes, the divide can heal or fester. When it |
| marriages simple do not make it. While there can be | | | | continually festers, you will eventually be facing divorce. |
| some traumatic reason for this such as a cheating | | | | Divorce in a business entity is much like that in a |
| spouse, the more common reason is people simply | | | | marriage. There is a totaling up of assets and income |
| grow apart. The same can be said for a business. | | | | and then a division of the same. The problem, of |
| A common business situation starts like this. Two | | | | course, is most businesses can't survive such a |
| friends come up with an idea they are enthusiastic | | | | division. The only answer is a cash settlement of some |
| about and decide to move forward. The friends put | | | | sort that will be agreeable to the parties. Usually, |
| together a business plan, funding and so on. They then | | | | nobody is happy with it. |
| launch the business and commit themselves to the | | | | Is there any way to avoid this situation? Not really. You |
| pursuit of that business for the foreseeable future. | | | | can use buy-sell agreements and the like, but a split is |
| As with life, the business is eventually going to run into | | | | a split. The best approach, in my opinion, is to realize |
| choppy waters. The particular issues that arise can | | | | that when you enter into a business with other people, |
| range from a lack of business and money to too much | | | | you are essentially agreeing to marry them. In some |
| business and cash flow issues as well as many other | | | | cases that can be good. In others, it can be bad. |
| things. The exact problem is irrelevant. What is | | | | |