The Partnership Charter: How To Start Out Right With Your New Business Partnership (or Fix The One You're In)

Earlier this year, I asked our COO to become a co-owner in the business. I had done quite a bit of research on my own, even turned to ChatGPT to help generate key questions we should consider before moving forward, things like legal structure, equity, and whether we were aligned long-term. But even with all that effort, I still felt like there were blind spots. That’s when I discovered The Partnership Charter, and it turned out to be exactly what I was looking for. I got the Kindle version. This book is incredibly thoughtful and comprehensive. It walks you through the conversations and considerations that truly matter before entering into a partnership (or if you are already in a partnership and need to make it better). The depth of insight, real-world examples, and the structure it offers far exceeded my expectations. On top of that, the accompanying software they have that goes along with The Partnership Charter helps you and your potential partner navigate critical questions together with clarity and intention. The book surfaced many issues I hadn’t even considered. If you're even thinking about entering into a business partnership, do yourself a favor and read this first. It’s not just helpful, it’s essential.

If you are about to start a business with other people - READ this book! It helps prevent conflicts from starting and it helps to resolve conflicts that have started. It clearly identifies the major issues that you encounter over a lifetime of business ownership and it helps you examine how to address differences in values - both personal, financial, and practical. We created a partnership/business agreement (shareholder agreement) about 20 years ago and we addressed about 80% of what this book recommends. The 20% that we forgot to address or that we were not courageous enough to admit might happen, turns out to be critical 20 years later. There are so many unintended consequences that come from our human nature to avoid conflict and to avoid addressing problems head on. Do you and your business colleagues sweep things under the rug or kick the can down the road and say, "we will look at this later"? Have you gotten into a jam because you avoided dealing with a problem in a timely manner? This book is a terrific tool that will help you understand and appreciate why you need to address key concerns BEFORE they morph into problems that threaten the well being of your company or business. This is so well written and enjoyable to read. The author, David Gage, gives great insights and shares quick, real life anecdotes from businesses that experienced real stresses and failures due to business relationship misunderstandings. This books gives lots of examples for how some businesses REPAIRED relationships and moved on to future success and how some DISSOLVED relationships and parted ways amicably BEFORE litigation. This is a powerful tool and resource that every business owner should read and every future business should read before starting out. Steve Covey said "begin with the end in mind" and this book helps you set meaningful goals that will work for you and your business partners and stakeholders.

There is a lot of good info in the book but the author goes overboard with examples and stories. I got it. You're a published author. The fact that I paid for the book means I designate you an authority in the subject matter. Quit trying to win me over with the stories. Everything else was really cool. Good outline. Good brief examples from time to time, in between the long forms. If you get into it, its about a 6-hour read and you'll feel compelled to make a move in your current partnership or think heavily on the correct steps to take before you enter one. I wouldn't say this is a must read, but its close for anyone starting a business and thinking about taking on a partner.

The Partnership Charter was recommended to me by a business consultant and I must say that it's the smartest $20 I've spent preparing for my project. The author uses multiple real life examples of both successful and problematic partnerships, shedding light on common pitfalls that can be minimized if not avoided, when discussed in advance. As you read along, it is easy to see how that lack of proper planning of so many expectations can quickly cause tension in the partnership. Through these examples the book does a beautiful job of demonstrating the stark contrast between the romantic vision of a successful business vs the possible reality of a strained relationship. The chapters and story lines are easy to follow and very engaging, maintaining your interest from start to finish. Researching the company further, I found that Dr. David Gage wrote a supplemental workbook to assist in the process of developing your charter. I contacted BMC and they were very generous with their time and counsel. I highly recommend the book to anyone seeking more knowledge and/or preparedness prior to entering into a partnership and to not hesitate in contacting the BMC Team for additional assistance. Overall, the book is well written, insightful and very informative! What else can you ask of a book?

I wish I had been privy to this book when I set up a family business partnership 6 years ago. If we had considered the multitude of ways that a family partnership could go wrong and put our partnership charter in place from the outset, we likely would have avoided the 3+ years and counting of misunderstandings, pain and destruction of what was a wonderful family. We're truly the living cautionary tale of what bright-eyed, bushy-tailed and hopeful will get you in the long run - exactly what David Gage talks about in his book. He guides you through the kinds of questions you should be asking yourself prior to getting into a partnership as well as the questions you should be asking if you find yourself already in one. He gets to the heart of issues such as each partners' vision for the company, it's strategic direction, the complicated issues surrounding who should get how much of the profits from the company and when you should start taking those profits out of the company. He also addresses the things that nobody every seems to talk about but will greatly impact the success of the partnership - the values each partner holds and whether they're compatible, what each partner perceives as fairness in the operation, and how to mesh individual operational styles. Finally, he gives instruction to help plan for the unexpected and how to resolve interpersonal conflicts that arise. He provides a very proactive stance in the formation of a company - an ounce of prevention is worth tens of thousands of dollars of cure, excrutiating heartache and endless therapy visits! There are certain books that should be a staple in any business owners' library - this is definately one of them!!

A lot of common sense, but never the less a good read. Its always good to have all you I's doted and all of your T's crossed.

I came across this book in the small business section of the library, and once I had read it, decided I needed to purchase a copy for my permanent collection. I have been through the partnership anguish described in the book, and I wish I'd found the book earlier because I think my partner and I may have had a chance at working things out had we followed Gage's advice. Moreover, I am writing a book on women and small business, including a section about how natural and helpful it is to take on a business partner. I plan to refer to and recommend Gage's book in my own. The Partnership Charter is insightful, useful, and well-written. In a very professional way, Gage tackles one of the most vexing challenges of small businesses: they are personality-driven. I won't pretend that implementation of his advice is easy, but at least you'll have a roadmap that helps you and your partner to reduce the risks, get to know each other better, and give it your collective best shot.

I describe myself as a "serial entrepreneur" and have read many "how to start your own business" kinds of books. This is among the very best. It strikes the right balance between being informative and readable. It's clearly informed by a great blend of theoretical knowledge, practical experience as a professional partnership mediator, and empathy for the audience. My only criticism is that I think the book would have been even more useful if it had included a section designed to be used as a guide for conducting a partnership charter workshop, including questions, exercises, and templates. Although there is an appendix with an extended and very useful example of a charter, the author points out that "No charter is perfect or can serve as a boilerplate for another partnership," so the example included is of limited value to a group of busy people who need to quickly and effectively develop their own unique charter. That caveat should not stop you from getting this book and reading it carefully, if you are considering a partnership, or are already in one.