Most entrepreneurs end up working with another person to make their business dreams happen. However, business partnerships can be tricky. Before you decide to go into partnership, you need to know more than whether this person has good ideas. You need to have a frank discussion about each other’s backgrounds and future expectations. Ask every relevant question you can think of. Here are a few to get you started:
How Much Time and Money Do You Expect to Put In?
Not all partnerships are created equal. Depending on your skill level or how comfortable you feel with certain parts of the business, you and your partner may split up efforts differently. Before you take on a potential business partner, you need to work out how much each of you will put into the project. Talk in terms of money and time because each has its own pros and cons. Even better, hammer out a list of duties each of you is responsible for and what happens if you fail to complete them.
How Much Ownership Do You Expect to Have in This?
Just as all partnerships are equal, neither are all ownership stakes. It’s not unusual for partners to have different ownership percentages in a business. Sometimes it’s because one partner is putting more equity in the business in terms of time or money. Perhaps the business is one partner’s baby while the other one would prefer to be less involved due to other commitments. Skill sets can determine ownership percentages, too. You and your partner should have a clear idea of who owns what before any work begins.
What’s Your Credit Like?
You may think your personal credit has no bearing on your business dealings but you’re wrong. Startups often have to rely on the personal credit histories of the key officers in the company to secure investors and business lines of credit. In addition to credit, you should have a frank discussion about any criminal past that may come up in during background checks. Investors, vendors, and banks may also run financial and criminal checks when determining whether to work with you. If there’s anything to know, you should know it beforehand.
What is Our Exit Strategy?
Few businesses last a lifetime. Even if yours does, that doesn’t mean you’ll have the same role the entire time. Although you don’t have to have it planned down to the exact date and detail, you and your partner should have an idea of how far you want to take this business. Be honest about what each of you expect to get out of the experience and what conditions would make you ready to move on. Then have a frank conversation about what the exit requirements are. What kind of notice do you require? What are the buyout terms? Is there some situation where one partner can force another to exist? Do the terms change depending on who requested the exit?
When Do You Want to Sign the Partnership Agreement?
You should never take on a partner without entering into a partnership agreement. The question should be when the agreement is signed, not if. Partnership agreements will vary depending on the type of business you’re putting together and the terms of your partnership. Make sure yours has covered every aspect of your agreement. Ask a legal representative to draw it up or approve the one you already have in mind. Hammering out the partnership agreement may take a while but don’t be tempted to move forward while you’re waiting on the terms to be worked out.
Best Places To Visit In The North Of England
If you live in England, you will know there are many different places to visit for the weekend. There are...
Green Home Improvement Ideas
In a world where environmental concerns are growing, the concept of “green” has gone beyond a trendy catchphrase and is...
How to Host an Unforgettable House-Warming!
The time has finally come. You have moved into your dream pad, and are officially adulting in your very own...
A Guide to Parking Lot Striping
The journey to a well-striped parking lot begins with the right paint. In this brief guide, we’ll unravel the mystery...
Business Tips For Protecting Your Finances During A Recession
In 2023, taking the necessary steps to protect your finances for your business is now more important than ever. The...
Tips For Cleaning Your Trainers
If you’re into your trainers and streetwear, you’re likely to be very conscious of keeping them looking their best! So,...
Branding Trends For Start-Ups in 2023
Branding is incredibly important as it impacts how your business reaches and connects with its target market. If you’re branding...
Avoiding the Wrong Kind of Growth
Growth is vital for any business – some models, like tech start-ups, are built around periods of dramatic, explosive growth...
How To Become A Property Developer
There are several reasons why an individual will want to become a property developer. One of the main reasons for...
What Is The Difference Between Cyber Attacks and Cyber Threats?
If you own a business that uses the cloud to manage workloads, you have probably heard of the terms cyberattack...
3 Types of Marketing Every Small Construction Business Should Do
Construction is a very saturated sector, whether you’re a large or small construction company, so marketing should be at the...
How Relevant Life Insurance Plans Can Future-Proof Your Business
Last year, UK inflation reached the highest level that it had been for decades. The markets became unsteady and nervous...
In a Car Accident? Here’s How to Find a Great Lawyer
If you’ve recently been in a car accident, you know that it can be an overwhelming experience. Not only do...
Considering Therapy? Here’s a Few Common Therapy Techniques Explained
If you’re considering therapy as a means to improve your mental health, you may be curious about the type of...
Top 5 Home Repairs You Should Never DIY
DIY home repairs are all the rage these days. But before you jump on the bandwagon, there are some things...
Tech9 years ago
Creating An e-Commerce Website
Tech9 years ago
Design Template Guidelines For Mobile Apps
Business4 years ago
What Is AdsSupply? A Comprehensive Review
Business8 years ago
The Key Types Of Brochure Printing Services
Law3 years ago
How Can A Divorce Lawyer Help You Get Through Divorce?
Tech6 years ago
When To Send Your Bulk Messages?
Tech3 years ago
5 Link Building Strategies You Can Apply For Local SEO
Travel11 years ago
Who Else Wants Also Nfl Hat