Partner or Puppeteer: how not to become a free employee of someone else's business
How the "puppeteer" schemes work
If an entrepreneur in a partnership is unable to distinguish intentions, he may end up in someone else's business, not his own, with someone else's rules and without real influence.
A partnership is always a compromise, and manipulators do not need agreements on equal terms. They know how to listen, praise, support, inspire. They need someone who will do the project with their own hands. The illusion is created that everything is fair and equal.
But in reality, this is a partnership on unfavorable terms. Controlling shares, trademarks and rights are registered, but not in the interests of all partners. Financial flows remain closed.
If an entrepreneur in a partnership is unable to distinguish intentions, he may end up in someone else's business, not his own, with someone else's rules and without real influence.
A partnership is always a compromise, and manipulators do not need agreements on equal terms. They know how to listen, praise, support, inspire. They need someone who will do the project with their own hands. The illusion is created that everything is fair and equal.
But in reality, this is a partnership on unfavorable terms. Controlling shares, trademarks and rights are registered, but not in the interests of all partners. Financial flows remain closed.
How to understand that you are not dealing with a partner, but a manipulator
A manipulator does not put pressure on you. He says the right words: “the main thing is the team”, “we will draw up the papers later”, “not everything is measured in money”. He avoids formalities, offering to “agree humanely”. And this is what should alert you. If you cannot ask a direct question: “What is my share?”, “How will we formalize our agreements?”, “Who is the account registered to?” - perhaps you are not a partner, but an unpaid employee.
Where there is no transparency, where legal details are postponed, where you cannot ask a direct question and get a direct answer - most often a scheme is hidden, not a partnership.
The signs can be different: someone evades discussing finances, someone offers to “join the project” without obligations, someone convinces you to work for free in order to “prove yourself”.
The scheme often looks like this:
A manipulator does not put pressure on you. He says the right words: “the main thing is the team”, “we will draw up the papers later”, “not everything is measured in money”. He avoids formalities, offering to “agree humanely”. And this is what should alert you. If you cannot ask a direct question: “What is my share?”, “How will we formalize our agreements?”, “Who is the account registered to?” - perhaps you are not a partner, but an unpaid employee.
Where there is no transparency, where legal details are postponed, where you cannot ask a direct question and get a direct answer - most often a scheme is hidden, not a partnership.
The signs can be different: someone evades discussing finances, someone offers to “join the project” without obligations, someone convinces you to work for free in order to “prove yourself”.
The scheme often looks like this:
- a team is formed around the idea, inspired by the mission to create an “Uber killer” or “new Amazon”
- the founding documents are drawn up in favor of one partner (up to 90% of the shares)
- intellectual property, technologies and trademarks are registered to one founder
- all financial flows are controlled by one partner
- the founders are cut off from money and work in the name of “future growth”
Joint business is a common solution for a startup. One brings an idea, another - resources, a third - experience or connections. Everyone is confident in victory, they agree "humanly", divide responsibilities, and launch. Shared goals, the same drive. But reality often turns out to be different.
But it happens that a partnership is just part of someone else's business model. Such a "partner" may have dozens of small startups and companies in their portfolio that are ready to work for an idea, for a promise of the future, for a share that legally does not guarantee anything. Whoever succeeds - will remain. Such an alliance most often becomes a bondage - legal, financial and psychological. And the person who has invested everything in the project often leaves with nothing. Because from the very beginning, it was not his business.
LLC "EIFOS HUB" (Ukraine) often encounters requests for consultation from clients who have already given away a significant part of the business for beautiful promises. And such cases, unfortunately, are not uncommon. If you know anyone who is currently starting a business with a partner, please forward this article to them!
But it happens that a partnership is just part of someone else's business model. Such a "partner" may have dozens of small startups and companies in their portfolio that are ready to work for an idea, for a promise of the future, for a share that legally does not guarantee anything. Whoever succeeds - will remain. Such an alliance most often becomes a bondage - legal, financial and psychological. And the person who has invested everything in the project often leaves with nothing. Because from the very beginning, it was not his business.
LLC "EIFOS HUB" (Ukraine) often encounters requests for consultation from clients who have already given away a significant part of the business for beautiful promises. And such cases, unfortunately, are not uncommon. If you know anyone who is currently starting a business with a partner, please forward this article to them!
How to avoid the pitfalls of partnership
Agree on transparent mechanisms "on the shore". If you invest resources, knowledge, reputation - protect yourself from the very beginning.
When working with a partner at the start, it is especially important to:
A serious partner speaks the language of numbers, signs documents and is ready to discuss not only prospects, but also risks and possible failures.
The LLC "EIFOS HUB" company supports transactions and provides consultations on partnership issues: from analyzing conditions to preparing partnership agreements and registering a company. We also pay attention to the digital protection of business, to real assets that must also be legally secured (domain names, email, CRM, trademarks, social networks). LLC "EIFOS HUB" checks partners, builds an ownership structure, analyzes current risks.
Agree on transparent mechanisms "on the shore". If you invest resources, knowledge, reputation - protect yourself from the very beginning.
When working with a partner at the start, it is especially important to:
- legally record the agreements - even if it is a simple agreement drawn up by a lawyer, a clear distribution of shares should be discussed before signing the first papers
- distribute shares before the start of activities, before conflicts arise
- agree on management rules: who makes what decisions, which partner is “in charge”, who makes key decisions, who manages
- designate access to money: who manages the revenue, according to what principle, where the money goes, who has access to it and on what terms (this applies to both investments and income)
- agree on revising the partnership (when you are just starting out, some compromises apply, while others apply as you grow)discuss exit scenarios: what will happen if someone wants to leave the project
A serious partner speaks the language of numbers, signs documents and is ready to discuss not only prospects, but also risks and possible failures.
The LLC "EIFOS HUB" company supports transactions and provides consultations on partnership issues: from analyzing conditions to preparing partnership agreements and registering a company. We also pay attention to the digital protection of business, to real assets that must also be legally secured (domain names, email, CRM, trademarks, social networks). LLC "EIFOS HUB" checks partners, builds an ownership structure, analyzes current risks.
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