Starting a business partnership is an exciting time for you and your partner (or partners!). Partnership relationships are more intimate than other kinds of business relationships because you have to rely on—and trust—your business partner completely in order for your new venture to be a success. There are many things you’ll need to think about when starting a business partnership that are unique to this kind of relationship. Since having a healthy relationship is the ticket to a successful business partnership, let’s look at some useful tips to make sure you stay on the right foot.
- Create a cohesive vision
When starting your own business, you need to make sure you have a clear vision, with a little wiggle room to spare. What we mean is that it’s important to remain flexible and open to change in case either of you decide that what was originally planned isn’t panning out so well. Regardless of any necessary changes that may arise, when you are working with a business partner, it’s even more important to make sure that you create a clear and cohesive vision and communicate your thoughts and ideas frequently.
- Establish trust
It should go without saying that trust is an essential component to any business partnership. Is there chemistry with how you and your partner(s) conduct business and network? A majority of your time, energy, and resources are going to go into making this new venture a success along with the other person(s). You have to be able to trust your partner in their work ethic and their ability to conduct business.
- Address all expectations
We can’t stress enough how important this one is. Managing expectations is one of the most important, and sometimes one of the most difficult, things to do when entering into a business partnership. If you lay out what is required and expected of you and your partner right from the start, then you can avoid a lot of complications and mistrust down the road.
- Set goals
When you’re starting a new company, it’s very important to make sure that you set both individual as well as business goals. In a partnership, goal setting for your company and for yourselves should be collaborative to make sure that what you both are trying to accomplish remains in line and in focus with your vision.
- Clearly define job roles
Every business partnership is different. Sometimes all partners will be actively working on the day to day while other partnerships might see one partner take on a more passive role. Whatever your plans may be, ensuring that you have clearly defined exactly what each and every partner will be responsible for is essential to making sure that everyone pulls their own weight. This will prevent the build-up of resentment and unnecessary arguments later on.
- The partnership agreement
Once you have discussed what your vision, goals, jobs, and expectations are, it’s time to get everything in writing. A partnership agreement is absolutely essential to any business partnership because it will lay out everything from expectations, to job descriptions, to cash disbursements. A partnership agreement should be drafted by an experienced business attorney who can remain neutral and work towards creating a rock solid agreement that benefits both you and your partner equally.
There are numerous things to consider to make sure your business partnership is healthy and successful, and this list only skims the surface. When entering into any kind of business relationship, seeking out experienced legal counsel is invaluable in making sure that everyone gets a fair deal. At Integrated General Counsel we have experience helping business of all shapes and sizes so please don’t hesitate to contact or call us at (925) 399-1529 (1LAW) today!
- Transparent Corporate Governance Is Necessary at Every Stage - September 26, 2023
- Jumping Through Hoops for Accommodations Isn’t Always Sustainable - September 26, 2023
- Intellectual Property Protection: Options to Safeguard Your Creations - July 31, 2023
