There’s something intoxicating about a handshake deal when everything feels good. You’re in the vibe. Trust is flowing. The energy is high.
And contracts? They seem like a nuisance—a buzzkill. After all, when things are great, agreements don’t seem to matter.
But here’s the thing: they absolutely do.
I’ve learned this lesson the hard way. Every time I’ve skipped proper contracts, every time I’ve hurried through the foundational steps, it’s cost me. And I don’t just mean money—I’m talking about energy, peace of mind, and sometimes even the relationship itself.
The Right Person vs. The Wrong Agreement
Let’s be real: with the wrong person, no contract can save you. With the right person, you might not need one—might. But contracts aren’t about distrust—they’re about clarity. They govern how we navigate future conflicts, because things will eventually get tough.
People change. Situations change. Life throws curveballs.
I used to hate meeting with attorneys. Am I billed for the small talk? They bill by the minute. But here’s the reframe: attorneys help you build the foundation. And just like a house built on sand, skipping the foundational agreements can cause the whole thing to collapse later.
Is it fun? No. Is it sexy? Definitely not. But it’s necessary.
Think of it like this: an ounce of prevention is worth pounds—pounds—of future production.
The Only Ship Meant to Sink?
There’s a saying: “The only ship designed to sink is a partnership.”
An accounting professor once warned me to never do a partnership. He said people’s values, work ethics, life phases, and energy levels evolve, and when they drift apart without structure, that’s when the ship sinks.
But here’s the nuance: partnerships can work, if you start right. If you build slow. If you’re willing to ask the uncomfortable questions up front.
Critical Questions Before You Partner
- Is this a partner, or is this really an employee? Maybe you can compensate with profit-sharing or upside instead of equity.
- Who’s putting up the capital? If you’re carrying the financial weight, is it truly an equal partnership?
- Will they stay in tough times? You want someone who shows up when things aren’t going well.
- How do they handle pressure? Their reaction in difficult situations says everything.
- Are they a cultural fit? Do their values align with yours?
- Can they grow with you? Some people fit now but won’t fit later.
- Do you have complementary skills? Or are you overlapping and stepping on each other’s toes?
- What’s the exit strategy? Do you want the same outcomes? Will you sell, hold, or bring in more partners?
- What does success look like, for each of you? Define it now, not later.
Starting slow isn’t weakness. It’s wisdom. Sometimes the smartest move is to date your partner in a project before you commit fully. Create agreements that reward contribution and protect the relationship.
Mediation, Disagreement, and Difficulty
When emotions are high, contracts become even more important. In the heat of disagreement, when things aren’t going well, emotions can sabotage almost everything. Logic takes a backseat, and obsession and frustration take over. This is where clear, detailed agreements become your lifeline.
A contract isn’t just a safeguard; it’s a reference point when you can’t see straight. It helps mediate disagreements by creating an agreed-upon framework that everyone can return to, even when feelings are raw. When you’re not at your best, a solid contract protects the integrity of the partnership and keeps the focus on resolution, not destruction.
Without this structure, arguments can spiral into blame games and emotional exhaustion. But with it, you have the chance to reset, to remind each other of your initial intentions and commitments. Contracts aren’t just legal—they’re relational tools that keep you grounded when everything else feels like it’s spinning out of control.
Go Slow to Go Fast
Contracts are an investment in clarity, speed, and sustainability. They free you to focus on production instead of protection. They let you enjoy the ride without bracing for impact at every turn.
When you skip this step, you’re building on sand. When you take the time to get it right, you’re pouring concrete.
And remember, the foundation isn’t the most exciting part of the house—but it’s the part that keeps the whole thing standing.
