Business partnership illustration. [Photo/thinglink.com]
Getting into a business is hard enough. Doing it alone is a more daunting task. Partnerships therefore come in handy when the need to spread costs and risks arises. Here are a few things you should know if you are getting into a business partnership.
You should share the same values with your partner
You and your partner should have the same dreams, goals and vision for your new business. You must share the same core values, goals and work ethic if you want the business to succeed.
Your partner should have different strengths from you
When you and your business partner have different strengths, you'll double the power of your startup. If you are shy, you could get a partner with sales, marketing and people skills. This way, both partners can focus on doing what they enjoy and are good at.
Have a track record together
Succeeding as business partners will be easier if you have tackled similar challenges together successfully. Look for a partner you’ve handled conflicts with, achieved common goals with and survived tough times with, in the past.
Know each partner’s role and responsibilities
Defining each partner’s job title and duties helps eliminate disagreements by giving each partner control of his or her domain. Everyone benefits from knowing which partner handles what aspects of the business.
Select the right business structure
Talk to a lawyer or any other experienced advisor to help determine which form of business is right for you and your partner.
Put everything in writing
Even if you're starting a business with your best friend from kindergarten, you need to draw up legal documents regarding your business structure, capital contribution to the business, how decisions will be made and disputes resolved and what happens if one partner wants to leave the business. Thinking through all the things that could go wrong and how you will handle them makes it easier to deal with any difficulties that do arise.
Honesty should be your policy
Hiding your true feelings because you don’t want to hurt your business partner will cause more problems than it resolves. Both parties must feel comfortable openly sharing opinions and hashing out any disagreements that arise