Starting a Jewelry Business is often an idea that friends light upon together. Usually, they are friends who enjoy making jewelry together and find the idea of launching a joint commercial venture challenging and exciting. It feels like the natural extension of a fun hobby and a way to deepen and reinforce the friendship. When I am approached by friends at this stage, I always sit them down for “The Talk”. This is not the warm, fuzzy, encouraging pep talk they expect. Rather, I run them through various scenarios to test how well they have really thought through their endeavor.
Collaborating on designs is one of the best parts of partnerships
First, I ask if they are ready to marry each other. Not only that, but are they ready to marry into each others family? A partnership really is like a marriage. Everything you love about your partner will also drive you crazy. Everything that happens to your partner or their close family, also happens to you. If you think it is complicated running your own family, wait until you have to coordinate two families!
What happens if one partner gets divorced? Could an ex-spouse end up owning part of the business? What if a partner gets ill and can’t work anymore? What if one family is forced to move out of town? What if one person just decides they don’t want to do it anymore?
When those questions are answered it is time to move on to more practical issues. Do both partners agree on how many hours a week they can commit to work? Do they agree on how much money to invest in the venture and how much of the profits they will take out or reinvest? Do they have the same vision of how large they want to grow the company?
You get the idea. Partnerships sound appealing but they can actually strain if not end friendships. To avoid that, it is always better to ask the hard questions up front. If you are happy with the answers, go for it! But be sure to have a legal partnership agreement in place before you embark on your new adventure.
Designers, what is your experience with partnerships?
My friend and I run our business separately, but share booth space at craft fairs and festivals. We split the cost of the set up fees and other expenses and keep our sales separate. This seems to work out well for us, no big drama involved.
Comment by Annita Wilson — June 14, 2010 @ 10:48 am
Thank you very much for your advices…
I haven’t thought about so many details! Really, partnership is like marrige…
Comment by Foteini — August 3, 2010 @ 4:45 am