You would agree that becoming a part of a business as a partner comes with numerous advantages. You can share stakes with other partners in as much as you are a contributor too. Also, it is important to say that the kind of contract you sign has a lot to play as to other roles you may play as a business partner. Nevertheless, there are important things you should consider before forming a business partnership.
What should I consider as I form a business partnership?
You should answer the following important questions to know the considerations for your business partnership.
Why do I need a partner?
This question seems to be the most important as one sets out to have a business partner. You must know if you need a partner or you can be self-sufficient to handle your business alone. Once you can provide reasons why you need partnership, you can then go ahead to answer other questions.
What is the financial state of my partner?
The overarching reason to need a partner is often for financial purposes. It would only be ironic if one’s partner cannot contribute tangibly to the financial strength of the business. Hence, it is appropriate that one knows the financial state of the partner to have an idea of how much the partner would be contributing.
Does my partner share my vision?
Two people ready to achieve success must share the same vision. This is not rocket science, as different visions will be distracting to both individuals. If care is not taken, you may substitute your vision for your partner’s new vision.
Does my partner have an experience of partnership with another?
You can research to know the previous experience of partnership your partner could have been a part of. Knowing this would help you to know what you can expect and possible countermeasures you may need to set in place while partnering with the person.
How can my lawyer contribute to this?
To avoid disagreement or feeling cheated, it is better to take legal support and advice while going on with the partnership. Your lawyer will not suggest options based on sentiments – this is in addition to his past experiences with people and ideas of possible issues.
Who takes control of daily operations?
You must know who is in charge of different operations. Is your partner going to be actively involved in the processes of the business, or is he/she only contributing financially? You must be clear and set boundaries such that both parties will be on the same page about the partnership deals.
What is the implication if my partner decides to quit?
You must decide from the beginning of the partnership what would happen if your partner quits. You can discuss this with your lawyer for better suggestions.
A business partnership can help to increase funds and share liabilities. It may be a great start for a new business. However, take cognizance of the above points to help you build a formidable business with strong partners. Look at more info like this on our website.