Working With a Business Partner: 3 Helpful Tips
Teaming up with business partners can be a wise decision that facilitates company growth or a mistake leading to ill will and wasteful legalities. Before committing to working with a partner, ask yourself if you really need one. If the answer is in the affirmative, here are some tips on selecting and collaborating with the right business partner.
Most entrepreneurs don’t need business partners who are just like them. Instead, look for someone who complements your personality and skill sets. If you pay attention to details, a creative person may be just who you need. If you tend to be withdrawn, an outgoing partner adds balance to the team. Difficulties inevitably arise, so check records to find out how your potential partner handled crisis situations in the past. Look into their financial situation for red flags and their family lives to assess whether obligations or difficulties might compromise the attention they can devote to the business.
Running a business involves a heavy investment of time and energy, so be sure that your potential partner is as committed to the company as you are. It’s crucial to be clear about the amount of time involved. You can usually assess a person’s level of commitment by the amount of questions they ask. If they’re serious about becoming a part of your business, they’ll want to know all about you and your company.
Put It in Writing
Although partnerships may begin with amiability and high expectations, it’s important to be realistic about the possibility that things may not work out. Always put your agreement in writing at the beginning of the business relationship, including the responsibilities of each partner, the consequences of reneging on the business arrangement, and your options if you mutually decide to dissolve the relationship.
For more advice on working with business partners, get in touch with Flipside Capital.