On Friday I was invited to be on The Big Idea with Donny Deutsch again. The show airs tonight at 10:00pm EST on CNBC. You will notice that the show’s format has changed since my last appearance - Donny and his team of experts now answer calls from viewers relative to the day’s topic. This show’s topic centered around “partnerships.”
Prior to taking callers, Donny asked the other two entrepreneurial guests, Troy Dunn and Victoria Colligan, and myself to name our top two secrets for an effective partnership. Originally, during preproduction the show’s producer, Melanie Jordan, had asked me to name five traits for a successful partnership so I was ready for Donny’s opening salvo.
I responded to Donny with “trust” and “communication” as my top two secrets. (FYI, I had also added passion, humor, and compatibility during my conversation with Melanie.) I truly believe whether it’s a business partnership or a spousal relationship, if you don’t have a foundation of trust, then everything else doesn’t really matter. You must feel that your partner has your back in good times and in bad. And when words, plans, and ideas are shared, they are the absolute truth.
That’s a perfect segue to my second partnership secret - effective communication. No assumptions, no guessing, no estimating, no saying one thing and meaning another. Good communication requires partners to really care enough to ensure their message is conveyed in a timely manner. And one suggestion I presented on the show was the “5-15 report.”
The Five-Fifteen is a communication tool that I’ve used throughout my entire business career and with all of my business entities – from Sports Physical Therapists, Inc. to the Philadelphia 76ers to Pirate Soul Museum. Each Friday by midnight I receive “5-15s” from my business partners, managers, and direct reports. Think of them as “Corporate Cliff Notes.” The idea is for team members to provide an abbreviated weekly update that takes me five minutes to read and 15 minutes for them to write. Hence, “Five-Fifteen.”
As I said to Donny, it helps me keep my finger on the pulse. Give it a try.
Watch PC, below, on The Big Idea with Donny Deutsch.
This entry was posted
on Monday, August 18th, 2008 at 11:45 am by Pat Croce
8 Responses to “Partnership Secrets
”
Joanne Sannito Says:
August 18th, 2008 at 4:02 pm
Dear Pat,
I will be tuning in to The Big Idea tonight in hopes of learning how to make my partnership work. My partner and I run a small preschool. I have also been best friends with my partner for over 20 years. We cannot agree on how to handle issues at the school when they arise. We each have our own responsibilities, however, she insists on having a say in everything, especially when she is not in agreement with me. This usually creates a hostile environment and she brings our staff into it. I am tired of being badmouthed, insulted, accused and berated by my partner. It has destroyed our friendship. This will be our third year running the school and we do not have a legal written agreement. We are now looking into one. Where should we go and how do we determine the value of the business should one of us decide to sell?
I am hoping this is not too little too late.
Thank you,
Joanne
Pat Croce Says:
August 19th, 2008 at 7:53 am
Joanne,
You should have had a written agreement prior going into any biz relationship. Now that it appears your relationship and friendship have ended, it is vital that you contact a lawyer and draw up an agreement based on the ownership terms you have agreed upon – and lived with over the past three years. There should be a clause that enables either of you to buy out the other should a partner wish to sell at a valuation price - determined by a third party. - Pat Croce
Very good show last night, Pat. I was waiting for you to put the three sisters straight. Especially the late one. I’m sure she has a working cell phone and could have kept her other sisters in the loop. Lateness is my number one annoyance!
Please let us know when you will be on it again.
Pat Croce Says:
August 19th, 2008 at 11:25 am
Thanks Dan. I agree with you. I believe “being tardy” is a trait of the lazy, undisciplined, or rude. But there’s an old saying: you teach people how to treat you. And those sisters were teaching the late one that it’s okay to be tardy!
I agree, great job on the show Pat! I also enjoyed your reference to goals, roles and tolls! For those of you who might not have seen it, here’s a link from Donny’s website where he talks with Pat about how Pat turned his passion for pirates into a thriving business. It’s only a minute long and it’s very cool.
Great job on the show. I really enjoy your enthusiasm! I own a small fitness studio and am the sole owner. Everybody I talk to says “don’t get a partner”. Yet, in order to get to the next level I think I will need help financially and on the business side. What are your thoughts?
Pat Croce Says:
August 22nd, 2008 at 8:09 am
Tom,
I’d go with bank debt first. And if you must have a financial “partner,” make sure you keep 51% control.
August 18th, 2008 at 4:02 pm
Dear Pat,
I will be tuning in to The Big Idea tonight in hopes of learning how to make my partnership work. My partner and I run a small preschool. I have also been best friends with my partner for over 20 years. We cannot agree on how to handle issues at the school when they arise. We each have our own responsibilities, however, she insists on having a say in everything, especially when she is not in agreement with me. This usually creates a hostile environment and she brings our staff into it. I am tired of being badmouthed, insulted, accused and berated by my partner. It has destroyed our friendship. This will be our third year running the school and we do not have a legal written agreement. We are now looking into one. Where should we go and how do we determine the value of the business should one of us decide to sell?
I am hoping this is not too little too late.
Thank you,
Joanne
August 19th, 2008 at 7:53 am
Joanne,
You should have had a written agreement prior going into any biz relationship. Now that it appears your relationship and friendship have ended, it is vital that you contact a lawyer and draw up an agreement based on the ownership terms you have agreed upon – and lived with over the past three years. There should be a clause that enables either of you to buy out the other should a partner wish to sell at a valuation price - determined by a third party. - Pat Croce
August 19th, 2008 at 8:28 am
Very good show last night, Pat. I was waiting for you to put the three sisters straight. Especially the late one. I’m sure she has a working cell phone and could have kept her other sisters in the loop. Lateness is my number one annoyance!
Please let us know when you will be on it again.
August 19th, 2008 at 11:25 am
Thanks Dan. I agree with you. I believe “being tardy” is a trait of the lazy, undisciplined, or rude. But there’s an old saying: you teach people how to treat you. And those sisters were teaching the late one that it’s okay to be tardy!
August 19th, 2008 at 3:37 pm
I agree, great job on the show Pat! I also enjoyed your reference to goals, roles and tolls! For those of you who might not have seen it, here’s a link from Donny’s website where he talks with Pat about how Pat turned his passion for pirates into a thriving business. It’s only a minute long and it’s very cool.
http://www.cnbc.com/id/26268448/site/14081545/
Keep goin’ strong!
Lee
August 21st, 2008 at 11:54 am
Pat,
Great job on the show. I really enjoy your enthusiasm! I own a small fitness studio and am the sole owner. Everybody I talk to says “don’t get a partner”. Yet, in order to get to the next level I think I will need help financially and on the business side. What are your thoughts?
August 22nd, 2008 at 8:09 am
Tom,
I’d go with bank debt first. And if you must have a financial “partner,” make sure you keep 51% control.
August 22nd, 2008 at 10:37 am
Thanks Pat, I appreciate your feedback.