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.