Unlock the secrets to a flourishing business partnership in the competitive world of salon and spa enterprises with our latest episode. While a staggering 70% of business unions may crumble within the first five years, we're diving into what makes the remaining 30% succeed against the odds. Our conversation traverses the landscape of shared values, the power of complementary skills, and the necessity of a strong, aligned vision. Every entrepreneurial duo will find our exclusive partnership agreement questionnaire an indispensable tool in setting the groundwork for a productive and harmonious venture. Whether you're a veteran in the industry or aspiring to join forces with another passionate entrepreneur, our insights are tailored to help you build a partnership that lasts.
As we unravel the threads of what constitutes a robust business alliance, we spotlight the superpowers each partner brings to the table. It's not just about what you can do individually but how you synergize to create a dynamic team. Financial literacy, trust, and cultural awareness are the pillars we discuss to prevent the common pitfalls of power struggles and ego clashes that often lead to partnership demise. We also offer professional guidance on structuring solid business agreements that can weather the storms of the industry. There's no guest this time—it's just us, sharing our wealth of knowledge and experience to help you navigate the complexities of business partnerships with confidence and foresight.
Get the download we talk about in this podcast here: https://keap.page/tlr120/partnership-agreement-information-s.html
Do you have a question for Blondes in Business: Luxury Beauty Business Podcast? Send a text or leave a voicemail at 855.650.3445 or send us an email to hello@thephdprogram.com. We would love to hear from you. Start growing in business and leadership with powerful tools, advice and resources in your inbox every week: Learn more about The PHD Program Events:
Unlock the secrets to a flourishing business partnership in the competitive world of salon and spa enterprises with our latest episode. While a staggering 70% of business unions may crumble within the first five years, we're diving into what makes the remaining 30% succeed against the odds. Our conversation traverses the landscape of shared values, the power of complementary skills, and the necessity of a strong, aligned vision. Every entrepreneurial duo will find our exclusive partnership agreement questionnaire an indispensable tool in setting the groundwork for a productive and harmonious venture. Whether you're a veteran in the industry or aspiring to join forces with another passionate entrepreneur, our insights are tailored to help you build a partnership that lasts.
As we unravel the threads of what constitutes a robust business alliance, we spotlight the superpowers each partner brings to the table. It's not just about what you can do individually but how you synergize to create a dynamic team. Financial literacy, trust, and cultural awareness are the pillars we discuss to prevent the common pitfalls of power struggles and ego clashes that often lead to partnership demise. We also offer professional guidance on structuring solid business agreements that can weather the storms of the industry. There's no guest this time—it's just us, sharing our wealth of knowledge and experience to help you navigate the complexities of business partnerships with confidence and foresight.
Get the download we talk about in this podcast here: https://keap.page/tlr120/partnership-agreement-information-s.html
Do you have a question for Blondes in Business: Luxury Beauty Business Podcast? Send a text or leave a voicemail at 855.650.3445 or send us an email to hello@thephdprogram.com. We would love to hear from you. Start growing in business and leadership with powerful tools, advice and resources in your inbox every week: Learn more about The PHD Program Events:
We are super excited to have you joining us today while we navigate all of the dos and don'ts when it comes to a business partnership inside of the salon and spa industry. What's up, it's Lindsay. I'm here with my co-host, jen, and we are excited to dive into this topic. That can be such a fruitful experience, or one that might leave a bad taste in your mouth and really just uncover what are those dos and don'ts so that you can have an epic partnership ahead.
Speaker 2:
Awesome. I don't even know the stat, I think I looked it up and it said 70% of most business partnerships don't last longer than five years. If you think about that, that is like wow, more than 70% of business partnerships don't last longer than five years. Today we're going to look at the why. Why is it that some people work well together and why is there opportunity that some people don't? It doesn't make them bad people, but just at the end of the day, going through this, through the lens of how can we set up a successful partnership so that everybody wins, which makes our company win, and, at the end of the day, we're really able to create something extraordinary?
Speaker 1:
Yes, there are so many amazing things that can come from if you are part of that 30% statistic, or if you look at some of the biggest businesses in the world, even outside of our industry. A lot of them have some sort of strategic partnership in place when you can dial in on what works there. That's great. Again, if you're your sole proprietor inside of this industry, that can be an amazing advantage too. There's advantages to both of them, for sure, but today specifically, we'll be looking at hey, what does it look like? What are the benefits of having a business partner? What is the importance of having that shared vision and those goals? Then, how can you complement each other so that you can really drive that business forward even faster and make sure that you get all of the right people on the bus?
Speaker 2:
All of that lens. It's like in business partnership, if you can find that right person, someone that does have the values that align with yours, and that's when success can really happen. How do you figure all this out? What is it that you need? We have a really lovely resource where we call it our partnership agreement information and questions that we'll make sure we get that to you guys in the feed so that you can have this tool if you're going to go into business with someone, so that you can understand just how their viewpoints of life are, how your viewpoints of life are, and if you can connect those viewpoints to create something that's going to be greater than you ever thought possible, because there are partnerships out there that do great and amazing things, because two brains are better than one brain. If you really can connect with that right person where your values align, that's where you can really make some magic happen.
Speaker 1:
Yes, and you know I love that you were just talking about the resource that we will have available. It really is an incredible questionnaire. You know, I think if you've ever been a part of a partnership, whether that was inside of business, or you know you've been married or dated someone before you know that, hey, you both walk into that with totally different realities, you know, and when you can really start to uncover what the other person's reality is, you know it can really give you a gift. And you know I've been a part of a couple of different business partnerships over the years and you know. So, really just harvesting from all of those experiences, what really does it take to make it truly successful? I think you know can.
Speaker 1:
Also, if maybe you're listening and you've been in one in the past that wasn't successful, you know really understanding why. You know, because maybe you were young and you just it's kind of like thinking of marriage or something. Maybe it was a practice marriage or a practice business partnership, that first one. But then you really started to understand more about who you were, you know, and kind of what your values and visions were for the future. You know that can really help you find someone that has that super shared reality with you. And so you know there's so much more to a business partnership than just getting the legal structure set up. You know there's a lot on that front and almost like marriage counseling, if you will, with seeing like hey, is this somebody you know who can really compliment me well and I can really compliment them well and, you know, can we work together to really create a beautiful, bright future for not only yourselves and start that partnership, but everybody else that you get to impact along the way.
Speaker 2:
So some of my favorite questions on that partnership agreement questionnaire is like what are your ideas on handling business finance? Like you want to understand at the end of the day, like, like Lindsay said, what are your realities Like when it comes to handling something? How do you each view that? Because if you have different views, it doesn't mean that you cannot be partners, but you have to understand each other's viewpoint, to come together to see if you can create that agreement, Because without that shared agreement and shared reality, that's when chaos and confusion happens. So you want to make sure that you understand how to handle business finance.
Speaker 2:
Another one is what is your personal risk tolerance? And sometimes I feel like it's good to have someone that's a really big risk taker and somebody that's not. They can really balance each other out. But to just truly like right now you're just gathering that data to see, like what do I need to know about this person? Because, just like Lindsay mentioned, if you're going almost into like a marriage with this person, like I need to know how they view life to help me understand if I want to do business with them, and so that just always like, what is your personal risk tolerance?
Speaker 1:
Yeah, that's. That's such a good one to really understand about somebody Because, like you said, there's no right or wrong. It's like just really fully understanding that other person. You know, and I think another thing that can happen to inside of business is, you know, sometimes some personal things can also trickle inside of the business. So you know that that's one of the areas that is mentioned inside of this questionnaire.
Speaker 1:
Is, you know, talking about, like your current debt and just so that the other person can be aware, you know, we, we say like hey, it's great to look at credit reports together and kind of go through that to see, you know, because that can impact, you know, the line of credit you're able to get at the bank or any loans that you might be able to take out. It's also just great to know, hey, if you are thinking about getting into a partnership with somebody you know who might be financially strapped in a certain area, like hey, can we clean that up beforehand or is this something you know that might prevent us from being able to move into the future that we would really like to create? Because you know, when you, when you aren't aware of what the full picture is, you know the worst thing that can happen is then you get into that partnership and then you get blindsided by you know something in and also just not realizing to. You know how much risk you can be in based on the other person in in the partnership. I think you know sometimes like if they, with their personal choices, they could ultimately impact the business.
Speaker 1:
You know, if you don't have it structured properly legally and you know so, just knowing some of those things on the front end just really helps you decide like, hey, can we really paint a beautiful picture together? Can we make a future that's super bright? Or, you know, should we wish each other well and know that we're both gonna thrive on our own? You know kind of painting different pictures because, again, it's it's. You know. The questionnaire is meant to help you understand another's reality so that you really can see what you can create to make possible from there.
Speaker 2:
Mm-hmm.
Speaker 2:
And so there's just came to mind, to me too, even if you have a current partnership and you're having some challenges like go through this partnership agreement information and questions, because it may help clear some confusion that's Causing some stress on the relationship, because maybe it just that reality wasn't shared in the beginning, and so now, you know, one person probably always thinks they do more work than the other, or the other person thinks they do the most work.
Speaker 2:
So, just really having that opportunity to dig into this, whether you're day one partnership, day zero partnership or year five Partnership, so I think that's another thing that you can look at too. And also, too, you know, I feel like as human beings, we all have a superpower, a strength, and so when you're really able to Utilize and understand what someone's superpower is like, if you can have two superpowers come together and they're, you know, green light people, so you know they're able to see the good in things and even when they're low on the scale of emotions, they're able to recover really fast, you know, then that's when you can really create that superwoman, superman, hero story, because you know we all have that special strength that we have. So really living up and living in your strength. I mean, especially when you have two different strengths that unite together is, I feel, like we're power really can come into play.
Speaker 1:
Hi hi, that is just brilliant what you just mentioned, jen. You know that's a big do like, do, make sure that you. You know uncover what roles you would be best suited for. And also, you know, think about those skills that you would have to bring to a partnership. You know, because sometimes you know, especially in the salon world when you're getting started, that you might have to do everything.
Speaker 1:
You know you might be the QuickBooks person, you might be the receptionist, the you know, you, you name whatever position inside of the company, you might be with the one wearing that hat, but you know Recognizing, hey, when we get to this percentage, you know, with our income or profitability or whatever Goal that you set for yourself, you know Say, hey, this would be a task that I would like to release to somebody, that it would be their superpowers, so that I could work on some additional things inside of the company that would be more suited at my superpower.
Speaker 1:
You know, and, and I think, inside of partnerships, having those clearly stated Will really make for one of the most successful partnerships, because if you know, hey, this is the hat I'm gonna wear, that I know that the buck stops with me and I'm gonna give it my all to to make sure that that's working great. And then also, you know, creating that system, for if you ever do need to step out, that somebody can easily, you know, duplicate or replicate what it is that you're creating inside of the company. I think you know that can be such a key, foundational thing inside of a partnership is is divvying up those different strengths of yours and and even if you're like, hey, this isn't a strength right now, just you know you sometimes you have to do stuff in the beginning Until you can grow to that place where somebody else who is better suited for that position can step in.
Speaker 2:
You know, another do too is to think about how much capital are you gonna be able to invest in the business, like today and you know there's all kinds of different capital you can invest in their sweat equity, there's money. So just making that I think structure really clear, like if I'm gonna invest a hundred thousand dollars and Lindsay's gonna invest ten dollars, like we're gonna fill out of exchange in the whole partnership, and so to really be clear about, hey, here's what our expectations are, here's the contributions we're willing to make. And you know how do we handle it when we feel like we're in over our head too, because if we make that investment and then we don't feel like we're getting that return on investment, it can really create more chaos and confusion in your personal life as well.
Speaker 1:
Yes, that is a great point of view to really look at. You know, and even just understanding you know, all parts of the finances. You know finances I feel like sometimes we've seen in partnerships, you know, where there's just one person who fully understands or views the finances and truly, when everybody kind of has that working knowledge in all areas of the business doesn't mean you have to be the one doing everything, but knowing, hey, I can confront, I can be with our finances, I can understand them, you know can really help everybody inside the business. Because we know, you know that if your finances are strong inside of a company, you know it is like the oxygen for a company. Without it, you know, you could be taking your last breath and not even know.
Speaker 1:
And so so really getting whoever is on the inside of the partnership to understand at least that main part, and also being on board with the culture, you know. I think sometimes you have to decide like, okay, are there going to be roles that we divide and, yes, somebody might be in charge of finances and somebody else might be in charge of culture or social media or whatever parts that you divvy up but then also knowing, hey, you know, finances and culture are going to be two of the biggest heartbeats to any salon or spa company, and so having your hand or your fingers on that pulse at all time is going to be important for any partner inside of any business. And so you know, when you've kind of divvied up some of those things, also thinking about, okay, what are we going to be connected on together and how will we check in to make sure you know that things are going according to our plan?
Speaker 2:
Because you know, I think the greatest asset that you can have in business partnership is trust, because when you trust someone, you feel safe with the information that you share with them, that you know they're not going to go share it with anyone else. So I think you've got to have that trust in there and you know to understand, like how is the relationship going to work. You know, the one of the dues that you want to have is like how often will we meet, how will we communicate, how frequently will distributions be made? And so I think, just coming from that space of, like Lindsay said, oxygen is what keeps the business business going, and so if you have one partner that is taking oxygen from the business, it's going to pack every single person in the business. So you've got to truly understand that as a partnership, you're there to play the same game and if you're not playing that same game, man, it's really going to be felt throughout your entire team, entire company.
Speaker 1:
Yes, that's a great lens to look at that through. And then also just having a plan like, hey, if that does happen, or even if a partner wants to withdraw, or they wanna move or get out of the industry, or whatever that might look like, having a plan for what to do next is going to be the key. Because it's really easy when you're brand new inside of a company to think, hey, let's do 50-50, we're never gonna break up. This is gonna be amazing. And then you get several years down the road and life has happened, whatever that might look like, and you realize, hey, we definitely needed some sort of legal support to make this transition smooth for all parties on the other side, because doesn't mean that somebody's a bad person if they don't wanna be in a partnership or that the business isn't gonna go on to thrive for whoever remains and the life of the other person isn't gonna go on to thrive as well.
Speaker 1:
But having that clear guideline in the beginning is key, just because sometimes, when you reach that stage, both parties' emotions are high, and when your emotions are high in that situation, your intelligence is usually low and so it doesn't help you make a decision that's gonna support all people involved, because inside of a partnership, of course there's the partners, but then there's also every single person in the company, and so being a leader when it comes to a partnership, looking out for every single person, means hey, you're gonna have to make the most ethical choice, and ethical to me would be using your knowledge for the highest good. But if you can map that out before those emotions get involved, it can eliminate so much heartache for so many people and make it a smooth transition that's able to be celebrated and have a business continue to grow and thrive, and any partners that leave or move on. It allows them to grow and thrive too and have a beautiful future as well.
Speaker 2:
I was talking to a business owner the other day and they were 50-50 partners and it hasn't ended well and I was like man, it's like you got their name tattooed on your arm and now it's hard to take it off. So I just always like to come from this space of, like Lindsay was saying, even if it's 49% and 51%, like who cares at the end of the day? Because, really, if you're really there to serve your mission out, who cares if one person has 1% more? Like if you're truly committed to what you're there to do, there's actually doing the business and being in the business and doing the work, and so I just I really think, most importantly, most business people love doing the work and so why does it matter if one person has 1% more and then the other, when you both are there to serve each other in your team to your highest good?
Speaker 1:
So good and honestly. Sometimes you can discover, hey, the person that you thought might be a wonderful partner is still an amazing person, but they'd rather just support the mission than have some financial backing on the line or have the additional roles or responsibilities on the line. So walking through that agreement, information and questionnaire really does help you assess what will be the best plan to move forward and thinking about how are we gonna do our funding, how are what would we do upon death Like that's something that you never wanna think about. But when you have a plan in the beginning, it helps just make a smooth transition forever and it really helps people like you said, jen, to be able to show up and serve out that mission and really give you that ability to thrive inside of your position.
Speaker 2:
Yeah, I love that. And sometimes, as you go into partnerships with people too, a lot of times our ego steps up and it becomes a power struggle and you have to think about it. At the end of the day, do you want to go through life with this person that you're getting ready to do business with or that you're doing business with? How do you view yourself? How do you view them? Because to go through business every single day in an ego clash or in a power struggle, that's going to be detrimental, that's going to take all your oxygen from the business and no one's going to be able to thrive and survive.
Speaker 1:
Yeah, and so coming up with a plan of what are those key roles, answering all of those questions. When it comes to your finances, we even have what are your personal values? Because if your values and visions don't line up for the future, again it doesn't make it either party right or wrong, it just isn't going to grow to its ultimate possibility. If there's two different sets of values and two different sets of visions and if they don't complement each other, well then that's when it can already put a block before it even gets to the space that it could get to. So really take the opportunity to download that questionnaire and really go through it.
Speaker 1:
Like Jen said, if you're day one or day 5,062, it's just a really good thing.
Speaker 1:
And sometimes it's like, hey, it reminds you almost, like why you got into that partnership.
Speaker 1:
You can start to see like, oh, hey, I remember all of these strengths about my partner that I forgot were there, or we got busy, or we got stuck in a certain area of our business because we could do it, but maybe not because it was our strength.
Speaker 1:
And so download this tool and really utilize it to see what it can create. And hey, even if you're not a partner, or maybe you're thinking about it in the future. Just taking it for yourself is really just good inventory on your own life, because you don't need to have a partner that's another person to show up as a great partner for the rest of the world or to show up as a great leader, and so it's a great thing to see hey, even if you've been in business for a while, to see maybe how far you've come in different areas, or a good reminder of what some of your key values are or what some of your strengths in your business are, so that maybe, if your goal is to step out from behind the chair or away from the table to really know, okay, where would I thrive in our business, where could I contribute the most value and what would be helpful for me to look for additional resources to create more value in that area of my business as well.
Speaker 2:
Awesome. So, yeah, that's going to be a beautiful tool for you to have, just like Lindsay said, and we encourage you to approach partnerships with caution. Don't forget red flags if they show up, for you to know that that means stop or proceed with caution, but also an optimism. There can be beautiful partnerships out there, as long as they're set up right and set up for success. And then you always want to make sure that you do seek legal and professional advice when necessary, especially setting up the business operation agreements and buy sell agreements, all of that. So just make sure that you have that in place as well, just in case the cracks in the foundation come through, that you have a plan in place to get that taken care of.
Speaker 1:
Yeah. So thank you so much for tuning in to today's podcast. Be sure to check out our show notes to get that amazing download, and if you know someone who is in a partnership that this could help send them the link to this podcast. You know where firm believers and givers gain, and so the more you can give to the world, they gain, you gain. Everybody gains from that experience, and so leave us a review if it's been helpful for you as well. We appreciate you tuning in so much.
