Equal Profits, Unequal Problems: Why Spending Rules Can Make or Break Your Partnership
Most business partnerships start with enthusiasm, optimism—and a quick agreement to split profits 50/50.
But here’s what I see far too often:
They forget to define how spending decisions get made.
And when the business starts growing and the stakes get higher, that vague arrangement turns into conflict.
One partner wants to reinvest in new equipment. The other wants to take a distribution. One thinks they can approve a $50K marketing budget. The other thought they needed consent. Suddenly, what started as a fair and friendly agreement becomes a fight over control.
In this LinkedIn post, I share a simple but often-overlooked solution: Put your money rules in writing from day one.
Decide which financial decisions require mutual consent
Set clear thresholds for discretionary spending
Define how profits will be distributed or reinvested
Watch the full carousel here:
It might feel like overkill when you’re just getting started. But trust me—this clarity will protect your partnership (and your peace of mind) when things get complicated.
Let’s make sure your partnership agreement is built to grow with your business: www.lawpla.com
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