The Ins and Outs of Forming a Partnership

Posted on

Are you considering forming a business partnership? If so, choosing a partner can be quite beneficial for your company—if you find the right partner. Below are several tips to keep in mind when considering a partnership.

Ensure Balance

The best partner balances out your strengths and weaknesses. For example, if you like to think about your business in terms of the big picture, your partner should like to focus on the small details required to run a business and understand how to make your big picture a reality.

Because everyone has different strengths and weaknesses, it is extremely helpful for your partner’s strengths to be different than yours. After all, the more strengths you have on your team, the more success you will experience.  Think of your partner as someone who can add unique value to the team.

Consistently Challenge

Finding a partner who challenges you to think outside the box and try new things can be helpful to your business. For example, if you are risk-averse, partnering with someone who thrives on risk can help you begin to think of risk as a positive and as a way to take your business to the next level.

Share the Same Vision

Two individuals with the same goals and passion form a successful partnership. Without this shared interest and energy, problems will inevitably arise and the partnership won’t succeed.

As a result, it is essential to ensure you are on the same page and ready to invest the same amount of energy into the business before entering into the partnership.

Communicate, Communicate, Communicate

Similar to marriage, business partnerships require consistent nurturing and open communication. Without this, the business will begin to fall apart. Be sure to frequently touch base with your partner and stay in the loop on everything happening within the business.

Create a Partnership Agreement

Partnership agreements are important in protecting yourself and the business. Instead of developing verbal agreements, these contracts should be in writing and be signed by all partners. Consider including the following in the agreement:

*Allocation of profits and losses

*Percentage of ownership

*Decision-making processes

*Partner roles and responsibilities

*Contributions of capital

*Unanimous vote requirements

*Dissolution of partnership

*Buy-sell agreement

*Non-compete clause

If you have questions regarding how to properly structure your partnership arrangement. Our business specialist are here to help! Give Inc Authority at call at 866-545-1867.