Information You Need to Get Before Committing to Business Partners
Do you need a business partner to help you drive the success of your company forward? How do you choose a partner who can complement your own abilities? Here are some guidelines that can help you determine if a business partnership may be right for you.
The first question you should ask yourself is whether you need a partner. Perhaps you can hire talent who can perform the same duties that you are seeking in a partner and then you would retain full control over your own company.
You should have a clear idea of your business goals and aspirations before seeking a business partner. Potential partners should be on board with those goals and able to help drive your company toward them. What expectations do you want your partner to fulfill? What expectations would they have from you? You should also discuss the expectations you have for your partner’s commitment to the company you will share.
Choosing a partner with integrity may save you from devastation later. You should gain not only top-level or community references, but also references from former employees and those who have worked under your potential partner. Your partner’s personal financial situation and outstanding financial obligations should be considered.
If you do decide that a partner can be beneficial, consider what kind of partner might provide balance to your own talents and skills instead of basing the decision on personal compatibility. If you enjoy the organizational or development side of management, then a partner who excels in building connections and sales contacts might complement your talents.
As you choose a partner who has complementary talents and abilities, you should make the responsibilities of each partner clear in writing. Being as detailed as possible in this step can reduce later conflict and confusion. Who will manage employees and vendors? Who will make daily contacts? How much time will you spend on each task?
Having a conflict resolution process in writing can reduce friction and create more stability for your company. Your responsibilities should inform how you handle day-to-day conflict, but what if your company has a catastrophe or offer to buy? It may be wise to outline major conflict resolution steps and sign a buy and sell agreement while creating your company.
It may be impossible to overestimate the advantages that written agreements can bring to a business partnership. Choosing a business partner based on their integrity and balance to your talents while committing to that partnership in writing may bring your company the momentum it needs while ensuring stability and long-term success.