Many fortunes have started by people working together. The one that comes to my mind is Google. Here we have two PhD students Larry and Sergey who worked together on building one of the leading companies of our time.
These guys started a corporate businesses together. But are we able to compare their successful partnership with partnerships in sports betting? I think it depends on the responsibility of the people involved.
If Larry and Sergey were both responsible for Marketing and they had a major difference, then I’m sure there would have been a few problems, that would lead into arguments, that would lead into fists flying around the room. Maybe that would have been the end of Google right there and then.
In order for partnerships in business, and of course in sports betting to work, the two people making up the partnership must be responsible for different things. So in Google’s case, Larry would look after the Marketing side while Sergey would take care of Accounting. Peace is restored. I’m not sure what the two guys were responsible for, but it didn’t take them long to hire a CEO to look after their company.
So how do we related this to sports betting? Put simply, you and your business partner need to be responsible for different things, and you can do this in two different ways.
The first way is to focus on one sport and divide the important tasks such as making the betting decisions and money management. In this way it’s more unlikely that you will be stepping on your sports betting partners toes if for example you were both making the betting decisions.
The second way – and the way that I prefer is to be responsible for different sports. Or in other words, to take ownership of your own business. You make all the betting and money management decisions for Formula 1 while your partner does the same for MotoGP.
If this is the case, having a partnership seems redundant doesn’t it? Not really. It all depends on why you’re after a partnership. I haven’t partnered up with anyone but if I choose to down the road, these are the positives that I’ll no doubt get out of it:
- Motivation – It’s hard to stay motivated at the best of times. Having a business partner there can help you stay alert and focused on your goals
- Opinion – It’s ultimately your decision, but opinions should always be welcomed, especially from a business partner
- Financial Support – Well the option is there. In case you’re out of dough you might need to dip into your business partners better money management piggy bank
- Missed Opportunities – Keeping updated with all the news about a particular sport is hard work. Not only to gather information, but to analyse it takes a lot of time and it’s easy to miss out on something critical. Having a partner there who can keep their ear to the ground will ultimately help you in making your decisions
- Accountability – A popular business buzz word. Having someone to report to will keep you honest, especially if you need to justify your betting decisions
If you work better with other people you should consider partnering up for your sports betting investments. Be warned though, there is a legal side that you should consider before any money is wagered.
The legal side can be quite simple and is definitely the way that I would recommend taking it, but it can very easily get very complicated if you want it to be. By complicated I mean that the investment of sports betting runs through a company where trust accounts and constant communication with accountants is involved.
If you want to go down this path, you need to seek advice from an accountant who understands this situation clearly. This means shopping around for accountants until you’re happy to settle.
If you want to take the quick approach to legal matters, it can be as easy as writing a clear letter where you both outline agreements with each other. Mention things such as what the business is comprised of, what the two of you will be responsible for and what will happen if an unreasonable dispute was to take place.
Make sure you both sign the letter and each of you keep a copy.
If your ready to start a sports betting partnership, but if you’re missing the most important ingredient – a partner, then stay tuned because in the next week or so I’ll write about the best place to find a business partner.
Or if you’ve had an experience with sports betting partnerships let us know in the comments section below.