Look out for nepotism. In such situations the partner may also be trying to drive out good employees as part of these efforts.
your partner is evasive with the finances, it’s a good bet something is wrong, and you need to find out. After all, it’s your business and you can be held responsible for things your partner does even if you don’t know about them. What can you do if you find yourself in this situation? The best advice I’ve heard, from an experienced matrimonial attorney, is don’t fight at their level. Good business attorneys will likely offer the same advice. You’re dealing with someone who’s already made the decision to be dishonest with you and maybe even emotionally bent on hurting you in any way they can. Don’t give them the opportunity to damage you or build a case against you. Once a partnership goes bad you’re not likely to fix it or patch it up and your best bet is to get out as fast and as clean as possible and move on. That’s not to say give up and let them have your money and business, but if you fight at their level, you will both lose and there may be neither money nor a business when the smoke settles. It’s not about them losing or you
winning, it’s about you getting out with what you can. Time will eventually catch up with dishonest people. The best way to protect yourself from a bad partnership is don’t get into one unless there is a clear benefit for all parties involved. Establish contracts and policies that define how the business will be managed and especially how the finances will be accounted for. Do this early rather than later to avoid allowing the opportunity for dishonesty. Don’t allow one partner to establish a culture of loyalty that conflicts with the interests of the organization and the business. Keep records
Always pay attention to the finances even if it’s not your
primary job within the partnership. Just like a marriage, all members of a partnership should demand equal access to financial reports and bank statements. Spend some time and go over them regularly and even hire an outside accounting firm to assist you if you need help. Look out for sloppy accounting and other common signs of poor financial recordkeeping. If it’s just honest mistakes your partner will be open to hiring an outside firm to clean up the books. After all, if your ultimate goal is to sell the business you will need good record keeping to accomplish that. I was in a successful business partnership on the cusp of a lucrative buy-out only to have the other partner sabotage the deal for unknown reasons. In hindsight it was likely he was concerned about the uncovering of financial misdeeds during the buyout. Just like a marriage, if
of everything and document everything in case you ever
need them later. Above all else remember there is no room for narcissism in business, keep egos checked and remember you are all in this for a common goal. Stay on top of each other and remember that once the relationship disintegrates, just like a marriage, it’s probably too late to salvage it. Shift gears toward recovery and look forward, not backward.
Paul Woodford has been in corporate aviation and the private aircraft charter business for thirty years as a pilot, instructor, manager, and business owner. Paul has flown in all 50 states, five continents, and over three oceans. Paul has started two successful charter management companies and most recently is the CEO of Legacy Jets in Scottsdale, Arizona and West Palm Beach, Florida.
42.
Legacy Quarterly
Made with FlippingBook Online newsletter maker