Lots of good points, above, Danny. (I hate getting in behind Jim P and Big Billy. They always say what I was going to say ...)
Remember, there are only three reasons anyone would even remotely consider entering a partnership given the entirely valid problems everyone mentions above. (Given our new moderator's proclivity for brevity I won't repeat them.)
1. You need their money. Don't do it, Danny. Never give away equity/control for start-up/expansion money. Remember, in the beginning getting an investment in return for 50% of nothing seems like a great deal. But over the years your business grows and your partner's stake (who may be doing little or nothing to aid this growth) gains too. Either start small and grow out of cash flow or borrow money- family, friends, credit cards, bank- it doesn't matter. whatever usurious interest rate you are forced to pay will seem cheap twenty years down the road when you are the SOLE OWNER of a thriving business and it is ALL YOURS!
2. You need their skills. Don't do it, Danny. Hire skills. Pay them well. maybe even a profit percentage of future growth that the employee directly contributes too. This will be cheap compared to making the employee a partener to "save money". Never give up equity- never give up control. Wait- I think I already said that.
3. You need their emotional support. Don't do it, Danny. That is why you have this board.
Steve Toburen
Director of Training
Jon-Don's
Strategies for Success
www.StrategiesForSuccess.com
PS Bill is right. Nick and John Paolella of Jon-Don have had a superb 30 year relationship on both a personal and business level. and yet, if you were to ask them, my guess is they would say, "Run, Danny, run!" Better yet, Danny, ask Nick yourself.
SFS- Tampa Bay Jon-Don- February 16-20! We would love to have you there and Nick (don't ask me why) likes you a lot.