My business partner and I started a small coffee roasting company two years ago. We were friends first, so we just shook hands and split everything 50/50 verbally. Now we disagree on everything from hiring to equipment purchases, and there's no written agreement to fall back on. We're both stubborn and it's getting ugly. Anyone else been this stupid?
Partnerships
We skipped the partnership agreement and now regret it
Ouch. Yeah, been there. Not with a friend, but with my cousin. We thought we were above paperwork. Spoiler: we weren't.
You're not stupid, just optimistic. But yeah, you need a partnership agreement yesterday.
Handshake deals are great until someone wants to buy a $10k roaster without asking. Then suddenly it's all 'but we never agreed on that!'
I'm a lawyer (not your lawyer, obviously) and I see this all the time. You can still draft an agreement now, even retroactively. It might be awkward but better late tyan never. Mediation could help too.
Wait, are you the LazyMondays from the roasting forums? Your Ethiopian blend is amazing. Sorry, off topic.
Focus, CoffeeAndChaos. But yeah, their blend is good.
Honestly, the biggest issue is the friendship. Even with an agreement, you two need to figure out if you can still work together. Maybe a third-party facilitator?
Or just flip a coin for every decision. That's basically what you're doing now, right?
SarcasticSue's joke isn't far off. Without a tiebreaker clause, you're stuck. A simple majority or a designated decision-maker for certain areas can prevent deadlock.
My partner and I had a similar situation. We ended up writing down everything we agreed on, then hashed out the rest with a mediator. Cost a few hundred bucks but saved the business. And our friendship, mostly.
Thanks for the input, everyone. We've got a meeting scheduled with a mediator next week. Fingers crossed we don't kill each other before then.
Good luck. Update us if you survive.
If it goes south, can I buy your roaster? Kidding. Mostly.
Mediator? Sounds like a fancy word for 'paid referee'. But hey, whatever works.
Let us know how it goes. Rooting for you guys.
One more thing: get everything in writing from the mediation, even if it's just a memo of understanding. Verbal agreements are what got you here.