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How do you split up work evenly in a JV?

by Josh MacDonald
8 replies
The problem is 80% of JVs that go on this forum are as follows...

2 people get in a partnership to work together on a new projects. Both have other projects besides the joint venture.

One person doesn't put enough work in, or one person is too busy to put time in.

How do you hold each other to certain standards?

How do you make sure you put in equal work?

One person ends up putting in $1000 and 100 hours to get it started, and the other partner is rarely responding to help, displays interest here and there but really doesn't start a convo about anything. Every conversation is started by the same person.
#evenly #split #work
  • Profile picture of the author JC Web
    First, you should have a written legal contract with anyone you get into business with. This should specify what is expected by each party to fulfill the contract and what consequences and recourse can be availed if the contract isn't met.

    Second, you shouldn't get into business with random people on the internet.

    Third, joint ventures partnerships are rarely split evenly with each person doing the same amount of work. Usually, each party brings something unique to the partnership and the amount of and type of work done is different for each member.

    Treat this like a real business. Don't jv with someone that you wouldn't be willing to open up a physical business with. Vet them the same as you would with a brick and mortar business. Draw up legal contracts the same as you would with any other real business.

    After all that, there are still always risks that the other person will not live up to the contract. You need to decide if the remedies available would be sufficient for you to take the risks.
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  • Profile picture of the author writeaway
    I wouldn't focus on the work per se

    I would focus on contributed VALUE

    There IS a difference.

    Knowing it can make or break your partnerships.
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  • Profile picture of the author Engineer2Blogger
    There are only 2 reasons I'd go into a JV.

    I need money.
    I need a skill.

    Don't just go in it because it's fun and you want someone to help keep motivated. Eventually, there will be someone who will be more passionate about the idea and will consequently do more work.

    If you can be the marketer/outsourcer and the other a designer/developer then you'll know which tasks get delegated where. Also, have an end time of the project. When to decide to 'ditch' it.

    Good luck.
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    • Profile picture of the author Josh MacDonald
      Originally Posted by Engineer2Blogger View Post

      There are only 2 reasons I'd go into a JV.

      I need money.
      I need a skill.

      Don't just go in it because it's fun and you want someone to help keep motivated. Eventually, there will be someone who will be more passionate about the idea and will consequently do more work.

      If you can be the marketer/outsourcer and the other a designer/developer then you'll know which tasks get delegated where. Also, have an end time of the project. When to decide to 'ditch' it.

      Good luck.
      What about: I need time from someone of equal skill?
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      • Profile picture of the author agmccall
        Originally Posted by Josh MacDonald View Post

        What about: I need time from someone of equal skill?
        It is called negotiation

        al
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        "Opportunity is missed by most people because it is dressed in overalls and looks like work." Thomas Edison

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        • Profile picture of the author NomadLifestyle
          I've had a few partnerships over the years, most of them have been terrible.

          I've experienced the kind of partnership where the other one just disappears with a bunch of money, I've had the kind where the other person is just lazy etc.

          It's very, very, very rare that I want to partnership these days. Very rare.

          That being said, here's a few tips I would give on JV partners:

          1. Don't both be good at the same thing.

          If you're both good of the same thing, then there really is no point in even becoming a partner. A partner should bring something NEW to the table. Something that you need. Otherwise, one of you are redundant, and redundancy in business is a red flag for failure.

          2. Make a clear business plan and sign a contract with expectations.

          Know exactly what you are both doing up front. Spell it out. Make room in the contract to adjust the contract when you realize that you have to do things that you hadn't written down. Will contract always hold up in court? I don't know, I'm not a lawyer, and hopefully you never have to use it.

          But...

          Having a contract and signing it seems to motivate people to not be total piece is the junk. At least from what I've experienced.

          3. Have a CLEAR and MUTUALLY AGREED UPON exit strategy.

          Every business fails eventually. Or more accurately:

          Eventually, every business goes out of business.

          Even successful ones.

          Some day, Microsoft won't exist anymore. That's a fact.

          Companies that existed 200 years ago, don't exist anymore.

          Eventually, you will come to a point in your life where you want to dissolve the partnership. Or you'll want to exit the business. Or close the business down etc.

          Know how, why, and what you are going to do when that happens. Agree with your partner on how to execute that exit, and hold each other to it.

          You can imagine the nightmare that comes from two people disagreeing about exit strategies (or if they should even exit the business at all).

          Partnerships CAN be beneficial, but I recommend them as a last resort.
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        • Profile picture of the author Josh MacDonald
          Originally Posted by agmccall View Post

          It is called negotiation

          al
          It's called, it's called.
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  • Profile picture of the author agmccall
    Don't expect an even distribution of labor. Like mentioned above you might need a skill or money. If someone puts up money for a certain percentage of profits then do not expect any work out of them.

    Set all your JV expectations in the beginning or your JV's will set them for you

    al
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    "Opportunity is missed by most people because it is dressed in overalls and looks like work." Thomas Edison

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