Many businesses thrive because owners sought out a partnership. Are you considering a business partnership?
You shouldn’t rush into a partnership with the first person who’s willing to work with you. You may need to think about the following:
1. Why are you forming a partnership?
It’s first important to know why you’re starting a business partnership. For instance, some people need a broader range of experience and skills to branch out their business. A business partner may have an educated background that can help strengthen a business’s awareness or they could provide connections that you didn’t previously have.
Or, you may benefit from having someone who can share the responsibility and workload that’s required for your business. Maybe your partner could manage new recruits or finances. By doing this, you could be giving yourself more time to spend on yourself or your family or use the time to branch out your business. Understand your goals can help inform your choice of a business partner.
2. What should be in your agreement?
It’s important for business owners to create a partnership agreement to protect everybody’s interests. This agreement would outline the responsibilities and obligations that are required of your partner. It could also detail how much control a partner has over the business and what decisions they can make.
3. How do you resolve disputes?
In any business, there will be hiccups. There could be a dispute between you and your business partner in the future that brings you to an impasse. Your agreement may have clear expectations when a dispute happens. That way, you can weather the occasional storm in your relationship — or understand what it takes to dissolve the whole agreement.
When starting a business partnership, you may need to learn about your legal rights.