Many folks think about business partnerships before they really think it through. A business partnership often begins with high expectations but, unfortunately,  some end in stress and even legal proceedings. It’s important to know as much as possible about a potential partner before inking a business partnership.

Tips for Taking On a Business Partner

Consider the following questions before taking on a partner in a business enterprise.

  • Is a partner really needed? Sometimes it is best to run the business as a sole proprietor.
  • What does the partner bring to the business? Ideally, the partner not only brings funds but also complementary ideas and business models.
  • What do the partner’s finances look Like? It is critical to the financial status of a potential partner before getting into a venture together.
  • Is the partner’s time available acceptable? It is essential to understand how much time a partner can give to the business going forward.
  • How much does the partner care about the business? It is important that you know that the partner is on the same page as far as commitment goes.
  • What else is going on in the partner’s life? Is there anything within the partner’s family life or social activities that may be a red flag?
  • How do they operate under stress? When tough business decisions have to be made, will the partner be calm, helpful, and collected?
  • How well does the partner know you? Do they have any questions that they would like answered before committing to a partnership?
  • Commit to the joint venture to writing. Make sure that everything that is verbally agreed upon is also recorded in written form.

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If you are thinking about forming a business partnership, it may be prudent to talk it over with an unbiased professional. Here at Navigate Firm, we can provide sound views on the matter.