Going into business with one or more partners requires a strategy in and of itself. Many businesses fail because partnership strategies are not well designed from the inception of the company. Many partners get along great in the honeymoon phase of a new business. But beware: if your new business partnership is not clearly defined upon startup, discontentment can happen. It happened to me in one of my businesses where my partner got a new job instead of working for our business. When I questioned why, the response was, “Their benefits are better.” This was an absolute shock to me and fortunately this partner accepted the terms of the buyout. When you start a new business with partners, remember to create your partnership agreement in conjunction with your business strategy. It will save you money and the opportunity to avoid potential anguish and unnecessary lawsuits. If you are already in a partnership, consider creating a partnership agreement before problems occur.
- What are the roles each partner will take in operating the business?
- How will final decisions be made?
- Who has the tie breaking vote?
- Do you have a written formal arrangement for the partnership?
- Who will the employees go to with specific questions?
- Will each partner make the same decision in daily business operations?
- What skills will each partner bring to the organization?
There are many more questions that need to be addressed and answered in an in-depth partnership strategy for a business to be a success. If you are in business with one or more partners or considering a new business with a partnership model, please call today.
Please call 312-778-6406 for help with structuring your business partnership.