Not Just A Matter Of Trust.
Eliot Wagonheim: It's a lot different having one person, meaning yourself, than it is having three people to divide up the work and divide up the revenues and divide up the control of the business. If you have partners very often a legal document and the consultations with the lawyer are the things that are going to enable each person to make sure that there expectations are the same.
Edward Jacobson: We need to sit down and we need to figure out. How much of this business do I own, how much of this business do you own, and how we will be splitting our profits?
Eliot Wagonheim: And each partner also needs know what happens if want to leave or what happens if you know what I just don't think the other person is pulling there way. In that case the only solution I can think of this to have a legal document that's spells out the best case and the worst case scenario.
Fred Provorny: What happens in the event the partners disagree? How do you resolve those kinds of disputes?
Eliot Wagonheim: I was very good friends with somebody with whom I purchased to house. He said, "You know, we should have a contract on that's to see you if you one of us wants to sell, have reevaluate that sort of thing". And I was the lawyer and I was saying, you know what I really don't think that's necessarily. We have known each other for 30 years.
Edward Jacobson: Wrong, get those issues out on the table now. Know what's going to happen before there is money on the table.
Eliot Wagonheim: Well, he prevailed upon me and I drew one upon was a three page agreement and five years down the road, we did wind up selling the house and it turns that we have different ideas about have to value the investment. We could refer to a legal document. We are still very good friends now. Had we not had that legal document, I am not sure be able to say that we would preserved a friendship.
Fred Provorny: You may have the best of intentions and he may be your best buddy, but things happen down the road where you have disagreements.
You creating additional liability for us.
Now, look I had it all over you.
No, what I want you to do is you try take shortcuts.
Edward Jacobson: The time to work out these issues is before there is money on the table, before there is any successes in the air.
Fred Provorny: It's only to best to have an agreement in place that deals with contingencies that might arrive.
Edward Jacobson: Get the stuff in writing, contact an attorney, get it memorialized, get everybody to sign off on it and then good luck to you as you go out into the business world.
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