Plato is my friend… but truth is more valuable. Signing a contract — that’s who your true friend and partner is.
Today I had another realization. You can be as kind as you want, try to help others with business, think we are partners… until you actually agree to sign a contract. I said, “Let’s sign a contract between us — just outline what we do, our roles, what happens if someone loses interest.” Two days ago, we were still partners. Today, I was told, “You are too much of a leader.” No, it’s not that I’m too much of a leader — it’s that I want to be equal. A partner.
I promise myself: I will not start anything with anyone until we have a signed agreement.
And yes, I call this the Cinderella Effect. You may work here, but at any moment we can also remove you.
Leadership is about using each other’s strengths effectively. My strength is my boundaries: my skills can only be used for money and under agreed conditions. I give a lot, but clearly, the other party cannot watch me build their business with my own hands and expect nothing in return. And I won’t work for nothing again. Anyone else, same rule: I help only after an NDA and a partnership agreement.
How to Understand When You’re Not Aligned with Someone
If a person agrees with everyone — with what you say and what others tell them — that’s a first signal of a self-determination problem. Someone else defines them.
Did I make the same mistake? Or did I have no choice at that moment? I did have a choice. I self-determined according to the principle of supporting the campaign, because that was the purpose of the game. I’m talking about my participation in a recent startup event.
Choosing this project cost me:
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Three days of intensive work
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Training someone else
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Another week of reflection and discussion about the vision for our shared business
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…and again, lost trust in people
Why?
Because I needed to understand which mill I was pouring water into. In recent months, in search of “my own,” I had written and discussed projects and ideas worth millions of hryvnias, gave them to others, offered practical advice, and even acted on their behalf.
“Good” people take advantage — but not sustainably.
When I see someone executing what I suggested without even a basic thank-you in monetary terms, I understand: no more free work, no volunteer consulting, no free business advice.
In the end, I didn’t achieve my own goals, regretted the lost time, because this was just an attempt. I helped for free and gained a new business lesson about signing contracts. There was no other goal.
But here I am again, leaving this practical reminder from a wise strategic marketing friend…
Questions for Partnership Agreement:
How will this agreement be formalized?
Subject of the business. Describe.
Business goals. List them (in S.M.A.R.T. format).
Reasons for creating the business. List.
Reasons for creating a joint business. List.
Participants. List all members.
What is the subject of this agreement? List.
What is NOT the subject of this agreement? List.
Mutual restrictions imposed on partners by this agreement. List.
Is this agreement fixed-term or indefinite?
If fixed-term, for how long?
Profit distribution.
Clearly and in detail define the principles for distributing profits already earned and to be earned in the future between partners. This includes money and non-monetary resources (e.g., informational and other intangible assets).
Principles of ownership of shared property.
Clearly and in detail define how ownership will be distributed.
Loss distribution.
Clearly and in detail define the principles for distributing existing and future losses (obligations) between partners, both financial and non-financial.
Who invests what? List contributions.
How investments are made, when, and in what form.
Create a table.
Liability of the owners toward each other (if applicable).
List the types of liability, when it arises, how it is expressed (e.g., financial penalties or other measures), and how and when it is enforced.
Principles of joint management and the procedure for decision-making requiring joint participation. Which topics are 100% votes, like investment, funding strategy…
What happens if a joint decision cannot be reached?
What is the next step? Describe.
Separation of executive and legislative authority within the partnership:
Where are the boundaries and how do they interact? Describe.
Liquidation of the joint business.
Describe the procedure.
Withdrawal of one of the partners from the business.
Describe the procedure.
Joining the agreement by a new participant.
Describe the procedure.
Incapacity of one of the partners.
Describe the consequences.
Death of one of the partners and inheritance of the partnership share.
Describe the consequences and procedure.
Responsibility of the business management structure (executive authority) before the owners (legislative authority).
Describe how this responsibility is implemented.
Hiring / dismissal of key employees in the business.
List the key positions (or functions) and describe the procedure.