A significant financial investment is usually required to get a new business off the ground and headed for success. One way many entrepreneurs offset these expenses is to take on one or more business partners.
A business partnership allows you to share labor and expenses while benefiting from the skills another party can offer, but what should you look for in a partner? The following tips may help you narrow your choices and find someone who can add value to your company.
Focus on candidates with shared objectives
Partnerships sometimes fail when the parties do not share the same business goals. For example, one may value increasing profits, while the other cares more about improving customer satisfaction. A formal dispute or business litigation could become a risk when partners have vastly differing objectives.
Focus on potential partners who can invest financially
As mentioned, a partner can help you overcome financial obstacles if insufficient capital is an issue. Of course, you still want to make a good match in other areas. However, someone with the economic means to help you start and grow your company could solve many money problems.
Focus on matching your management style and personality
The ability to get along can be essential to a successful business partnership. Partners with complementary personalities and styles may experience fewer misunderstandings and disputes. If a conflict does arise, the ability to work together could help you resolve your issues before they can worsen.
Once you find the right partner, you will need a partnership agreement defining the terms of your association. These contracts require precision and attention to detail to ensure they will protect all parties. A legal perspective may help when you need business contracts that must conform with California law.
