The Cons of a 50/50 Equity Business Partnership
Although this article could have been called “The Pros & Cons of a 50/50 Equity Partnership“, the cons outweigh all the pros. The obvious issues are addressed when partnerships are formed. What are the strengths and weaknesses of each partner? What will each partner do to help the business succeed? How long will each partner continue to grow the business before they consider selling it? Is that it? It’s not.
No doubt, economic and industry factors change once the business is established. Every partner has a different perception of where the business should go. The mix of products and services is a constant decision. It’s the decision to enter another business line or exit one. Do you prefer a lower volume business model with a lower profit margin or vice versa Perhaps a shift to a capital-intensive model? Many potential investors will be attracted to a business that is a success. Each partner must agree to the investment proposal.
What happens if one partner acquires an asset to the business, whether it is land, a building or a small data centre with a thousand servers? Or, even more complicated, contributes an intellectual property of some kind. What is the value of the contributed asset? Who should value it? This can be a huge problem. Many buyers don’t value any piece as much as it is worth.
The financial position of each partner will have changed significantly since the founding of the company. All cash, all stock, or a combination thereof could all be considered for consideration. Each partner will have different tax implications depending on which of these three scenarios they choose. Too many times have I seen the process of selling a company fail because the partners disagreed on the deal. After years of building the company, they disagreed about when, to whom, and how much to sell it.
It is all about the return on equity. My suggestion: One ship, one captain.
“The Impact of a Lack of Self-Esteem on Business Professionals.”
According to studies, at least 85% of the world’s population suffer from low self-esteem. Although it might seem that these problems are limited to the poor, uninformed, and lower socio-economic groups of society, many people can experience more severe or situational challenges with their self-esteem.
Even the most successful businesspeople are not self-confident in certain areas of their lives. They may feel socially excluded or have trouble establishing intimate or close relationships. They might have low self-esteem in regard to their appearance or health. They might not be having fun or putting too much focus on their work. Many people who are successful are driven to succeed. They find a way to excel in their work and compensate for being deficient in other areas. They have a new focus that allows them to win, but it doesn’t satisfy their needs in other areas such as relationships, recreation, spiritual development, health, appearance, or their ability live balanced, enjoyable, and fulfilling lives.
Finding a niche in which one is successful and feels good about yourself is not a bad thing. Many people who lack self-esteem in other areas are driven to succeed, driven to prove themselves worthy. They focus too much on business because it is the only area they excel in.
Their actions are based on the false belief that they are not good enough, or are defective, and they don’t feel satisfied even when they excel in their chosen fields. They feel like they are on top of a ladder, with the top at the top. They believe that if they climb high enough they will succeed. They will have proved their worth. They will find happiness, fulfillment, and satisfaction. They never seem to reach their destination, even though they climb higher and higher. They are constantly challenged to achieve new goals and objectives in order to prove their worth. They are always challenged to achieve more. They never seem to measure up, no matter how hard they try. Even if they do manage to achieve it, it’s short-lived at best. They will never find the peace of their hearts and minds that comes with self-love or self-acceptance.
Their ladder’s foundation is made of quicksand and they find themselves sinking just as fast as they climb. They will never achieve the perfection they desire. They will continue to find evidence that highlights their weaknesses and reinforces their fear of being unworthy, unloved, or defective.
The Self-Esteem book’s message is simple. A lack of self-worth does not mean that one should settle for a miserable existence. People either believe or buy into the belief that something is wrong with them, that it is not right for them to be loved and have access to all that life has in store. They can examine their past to find the root cause of their resignation or low self-esteem. Then they can make a conscious decision about how to live their lives. They will find happiness and fulfillment by establishing a strong belief that they can make a difference in the world and are worthy of all the blessings that life has to offer.
You can’t find true happiness and long-term satisfaction without self-esteem. Business people are also affected by it. They lose their power and ability to fulfill their life purpose. If we are preoccupied with our past or our weaknesses, our energy can be wasted and we cannot be fully present today. This makes it impossible to achieve our true potential.
When we misinterpret others’ words and actions, it can lead to a breakdown in our relationships. This can make us feel bad about ourselves and invalidate our relationships. Sometimes we may feel so determined to prove that we are enough that we compromise our personal effectiveness and charisma by focusing more on our own shortcomings than the needs and wants of others. Sometimes we may hide in social situations, or be afraid of being “found out.” We may also overcompensate or turn to workaholic tendencies in order to prove our worth to other people or ourselves. This misdirected focus can lead to us losing our ability to make an impact on others and best give our gifts to the rest of the world.
The Self-Esteem book outlines the three steps that will help you escape the vicious circle of low self-esteem and diminished confidence as well as the never-ending quest for fulfillment. This involves healing the past to ensure it doesn’t rob us of energy or consume our attention. After releasing the past ghosts, it is possible to focus on analyzing and evaluating our current situation. It’s possible to identify what’s working and what’s not, and then we can focus on how to live a happy life.
Finally, we have the power to take that magical wand that is our birthright and wave it over our lives, allowing us to design our future. It is possible to choose to do this in a way that excites us and let go of the gloomy feelings of low self-esteem or unhealthy resignation. Living with the intention of honoring our God-given magnificence can help us live happy, fulfilled lives and share our gifts with others.