Choosing the Right Partner for Your Business
- Posted on: Mar 28 2023
One of, if not the most important decisions that you will make in starting a business is selecting the right partner. Choosing a business partner is somewhat like choosing a romantic partner. This is especially true, as you may spend as much – if not more – time with them as you do a spouse. The success of your business will hinge upon whether you are choosing the right partner; one who can handle the trials and tribulations of business ownership. So, how do you go about choosing the right partner? Here’s what to consider.
1. Consider your own needs.
Before you select a partner, it’s imperative that you understand exactly what you are looking for. It helps to know what type of role you want a partner to play in the business and how they will complement your own responsibilities. Do you want someone to manage the day-to-day operations of the business while you oversee the financials? Do you want a silent partner? You can’t pick the right person until you know what type of person would be right. Additionally, by knowing and setting your expectations and needs at the beginning, you can help to prevent certain issues down the road.
2. Consider what your partner needs.
Your business partner will have a life outside of your business. It’s important to understand what that looks like. Consider what the person you’re thinking about partnering with is motivated by, distracted by, and aspiring to. Does this person want to work as equals or does he or she have a need to feel in charge. Does this person have outside business ventures or a family that may take their attention away from the business? Businesses can take a fair amount before they become profitable. It’s important to consider these things about your potential partner to assess whether they will be likely to stick around.
3. Decide if you will both sign on the dotted line.
Long gone are the days when a handshake was good enough. No matter the type of business you are starting, it’s imperative that you always put the agreement in writing. This can help to set expectations on things like roles, responsibilities, and finances. Doing so can also help to unveil any potential issues and to address them upfront before they result in serious issues for the business. Your agreement should also include provisions concerning the dissolution of the business partnership. While the partnership may seem unstoppable now, things can change. It’s important to prepare what to do if things don’t work out. This can also help to prevent issues later on.
The Law Offices of Brian L. Fox, APLC Help those Who Wish to Start a Business
If you or your loved one live in California and wish to start a business, it’s in your best interest to consult with a qualified California business attorney who can help.
At the Law Offices of Brian L. Fox, APLC we know how important it is to protect your business and your interests. We will help you to establish a comprehensive business plan that meets your needs and sets you up for success. To learn more or to schedule a free consultation, contact us today!
Posted in: Business Planning