Office Hours: A Guide to Business Partnerships, Consumption vs. Investing, and What to Do if Your Adult Children Are Still Living at Home

Compatibility

Scott Galloway emphasizes the importance of finding a business partner with complementary skills and assets. He advises that a successful partnership requires mutual respect and the ability to tolerate each other's differences. Scott suggests, "A business partnership shares a lot of the same attributes for success as a romantic partnership or any relationship."

A business partnership shares a lot of the same attributes for success as a romantic partnership or any relationship.

--- Scott Galloway

He also stresses the importance of being generous and transparent, and not keeping score in the relationship 1 2.

   

Deal Structuring

When structuring investment deals, especially in real estate, Scott Galloway advises using established benchmarks and involving a knowledgeable real estate attorney. He explains that investors typically expect you to have some "skin in the game," often around 2% of the capital. Scott notes, "You're going to own 20% of the upside," highlighting the potential rewards of a well-structured deal.

You're going to own 20% of the upside.

--- Scott Galloway

He also mentions the roles of general and limited partners, emphasizing the importance of clear roles and responsibilities in partnerships 3.