Things To Consider Before Going Into Business With A Partner
When you are thinking about starting a new business, working with a partner is often very enticing. This allows both of you to share the responsibilities, brainstorm ideas together, and help get financing with both of your credit ratings. However, you need to think about a few things before deciding who to partner with.
Find Someone Who Brings Skills You Don't Have
To benefit the most from a business partner, choose someone that has skills you don't currently have. This allows both of you to bring a unique skill set to the new business, as opposed to two people with the same experience trying to split up all the responsibilities. For example, if you want to start a business where you develop new apps and you are good at the creative side, you might need someone with the technical skills to actually create the apps.
Look Into Their Financial Stability
Before you sign on the dotted line, make sure you know what the financial situation of your potential business entrepreneur partner is. They should be more than willing to share their finances with you, just like you will with them, to make sure this is something that will work out for both of you. You don't want to go into business with someone that has past experience with filing for bankruptcy or not paying their bills or someone who might have major expenses that could get in the way of helping to fund your business. You should be on about the same level with your partner when it comes to finances.
Make Sure Your Business Brand is Priority
The brand of your business is important to you, so you want a business partner who not only knows what it is, but also wants to work hard to keep that brand protected. Choose a partner who has similar business goals as you, whose aspirations are the same, and who you can bounce ideas off of. Share your personal goals for the business and brand with them, and ask for their suggestions. If they have a lot of great ideas that show passion for the brand you hope to have, then they are likely a good fit. Make sure everything is laid out first with a detailed business plan before you go into a partnership with them.
Don't forget to get a lawyer for your protection and the protection of your business. It is a good idea for your partner to have their own lawyer as well before signing contracts.