Dr. Paul's Insight: Know the Interest, Not Just the Position

Dr. Paul's Insight
From the Book · Management and Leadership for Small Businesses, Chapter 14, Conflict Resolution · Dr. Paul's Fabled Forest Business School Series

"Now," said Doctor Owl. "What do you each want?"

"I want him to say it was his crew," said Sheldon.

"That is a position," said Doctor Owl. "It is the thing you are demanding. Under every position there is an interest: the reason you want it. Why do you want him to say it was his crew?"

Sheldon thought about it. "So it doesn't happen again."

Dr. Paul's take: Every partnership fight sounds like a position: "I want more say." "I want my money back." "I want my name on the sign." Under each one sits an interest, the real reason. Before you partner with anyone in Largo, ask what they want from the deal and why, and say your own answer out loud too. If the two interests fit, the positions can be worked out on paper. Dr. Paul's guide to resolving conflict shows how to find the interest under the demand.

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Four Partnership Myths That Cost Owners the Business

Most partnership trouble starts with something both partners believed and never said out loud.

Myth"We are friends. We do not need it in writing."
FactFriends are exactly who need it in writing. The agreement protects the friendship when the business has a bad year.
Myth"Fifty-fifty is the fair split."
FactFifty-fifty is the split with no tiebreaker. Fair depends on who brings money once and who brings work every day.
Myth"My partner's debts are my partner's problem."
FactIn a Florida general partnership, partners are liable jointly and severally for the partnership's obligations. The entity you choose matters.
Myth"We will figure out the exit if it ever comes up."
FactIt always comes up: a move, an illness, a burnout, a better offer. Price the buyout now, while you still like each other.

Put Both Partners in Front of the Same Numbers

Partners fight less about the work than about what the business is worth and who put in what. Pinellas County has no-cost help that can give you both the same starting point.

Where Largo's Own Guide Sends You

The City of Largo's New Business Quick Start Guide points owners to the SBDC run by Pinellas County Economic Development for one-on-one counseling. It is no-cost and confidential, weekdays, at 13805 58th Street North in Clearwater.

A Business Health Assessment

The SBDC's no-cost Growth Acceleration Services, for businesses with at least $500,000 in sales, three years of operation, and five or more full-time staff, include an on-site assessment and a written Business Health Assessment Report.

Sources: City of Largo New Business Quick Start Guide; Florida SBDC at USF, Pinellas; Florida SBDC at USF, Growth Acceleration Services.

Weighing a business partnership? Largo owners bringing a partner into an established shop could use that report as a shared, outside read on the business before anyone talks percentages. Starting fresh together? Book one session and bring both partners. Dr. Paul works with owners who know their trade and want help with the business side of a deal like this, and he helps you turn the numbers into terms your attorney can write.

Should You Take This Partner? A Five-Question Test

Answer each one honestly. A no does not kill the deal. It tells you what to fix, or what to do instead.

  1. Does the partner bring something you cannot hire, rent, or borrow?
    If noHire it, rent it, or borrow it. Paying for a skill costs less than giving away ownership forever.
  2. Do you both want the same thing from the business in five years?
    If noOne wants to sell, one wants to grow, one wants a paycheck. Settle it now or plan the split now.
  3. Have you agreed who decides when you disagree?
    If noName a tiebreaker: a final say by area, an outside advisor, or a set vote. A deadlock can sink a partnership as fast as bad money.
  4. Have you seen each other's numbers?
    If noPersonal debts, credit, and other ventures land on the business. Look before you sign, both directions.
  5. Is the way out written down and priced?
    If noWrite the buyout formula before day one. A price set in a fight is never fair to anyone.
Five yeses? Take the agreement to a Florida business attorney. Any no? That is the agenda for your first session with Dr. Paul.

What Florida and the City of Largo Ask of Partners

The paperwork is not the hard part. It does decide who is on the hook, so read it before you pick a structure.

Florida law

  • In a general partnership, partners are liable jointly and severally for the partnership's obligations.
  • A general partnership can register with the Division of Corporations by a Partnership Registration Statement.
  • A Statement of Qualification can make it a limited liability partnership. Many partners choose an LLC instead.

City of Largo

  • The city's quick start guide says to register your name or entity at Sunbiz.org first. You need that proof to operate here.
  • Confirm your location is an approved land use with Ask a Planner, then get a City of Largo Business Tax Receipt.
  • Receipts run October 1 to September 30. Renew on time.

Sources: Section 620.8306, Florida Statutes; Florida Trend, What is a partnership?; City of Largo Business Tax Receipt; Largo New Business Quick Start Guide.

Central Pinellas Chamber

Named in the city's quick start guide. A place to meet owners who have run a partnership and lived to tell you how.

Downtown Largo, West Bay Drive

One of Largo's two community redevelopment districts, with Clearwater-Largo Road. Ask the city about redevelopment incentives before you two sign a lease there.

The partnership question is one of twenty on the Tampa Bay business consultant pillar, the hub for growing owners across the bay.

The Book on Decisions, Disagreements, and Who Decides

Management and Leadership for Small Businesses book cover, Dr. Paul's Fabled Forest Business School Book 1

Dr. Paul's Fabled Forest Business School Series · Book 1

Management and Leadership for Small Businesses

Book 1 of Dr. Paul's Fabled Forest Business School Series. Conflict resolution, decision making, organizational structure, and delegation, taught through one Fabled Forest owner per chapter. Sheldon and Percy, the two crabs of Chapter 14, are every pair of partners who argue about who is to blame when the real question is how to stop it happening again.

Get Book 1 on Amazon →

Partnership Questions Largo Owners Ask

What should a business partnership agreement cover?
At minimum: what each partner puts in, how profits and losses are split, who does which job, how decisions are made and who breaks a tie, what happens if a partner wants out, dies, or stops working, and how the business is valued if one partner buys the other out. Have a Florida business attorney write it.
Am I personally liable for my partner’s business debts in Florida?
In a Florida general partnership, partners are liable jointly and severally for the partnership's obligations, unless a creditor agrees otherwise or the law provides otherwise. That means a creditor may come after you for a debt your partner signed. Many partners use an LLC or a limited liability partnership instead. Ask a Florida attorney which fits.
What do partners need to open a business in Largo?
The City of Largo's quick start guide says to register your business name or entity at Sunbiz.org, and you need proof of that registration to operate in Largo. Then confirm your location is an approved land use for your business and apply for a City of Largo Business Tax Receipt before you move in.
How should partners split ownership?
Split by what each partner brings and keeps bringing, not by friendship. Money put in once is different from work done every day. Many partners separate the two: ownership for the money, a salary for the work. Whatever you choose, write down what happens when one partner stops pulling their weight.
Can Dr. Paul help us decide whether to partner?
Yes. In a business consulting session, Dr. Paul helps you and your would-be partner put the money, roles, decisions, and exit on the table, test the numbers, and spot the gaps before an attorney drafts the agreement. You both make the call. He helps you see it clearly.

Agree on the exit before you open the door.

Dr. Paul Borosky, DBA, MBA

Business Consultant, Author & Educator | 14+ Years | 1,000+ Clients Served

DBA, National University MBA, Focus in Finance, Webster University Serving Tampa Bay from Deltona, FL

Dr. Paul Borosky, DBA, MBA is a business consultant, author, and educator, and the founder of Quality Business Plan. He helps Largo and Tampa Bay owners with business planning, financial modeling, fractional CFO work, and the everyday problems of businesses that depend too much on their owners. He is the creator of Dr. Paul's Organize-Plan-Grow™ Strategy, author of numerous published books on Amazon including Dr. Paul's Fabled Forest Business School Series, and publisher of over 1,000 business-focused videos on YouTube. He has taught as an adjunct college instructor and teaches in Florida public schools.

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This page is for general educational purposes only. It is not legal, financial, tax, or other professional advice. Florida law and City of Largo requirements are summarized from the cited sources and change over time. Have a Florida business attorney draft any partnership agreement. For decisions about your own business, consult a qualified professional.