Running a business has many challenges. You may not have a strong desire to take on all of these on your own. This may lead you to consider bringing on a business partner, someone to help share the load and collaborate with. Good business partnerships can bring a lot of success for companies. A troubled partnership, however, could pose real challenges for a business and make life more difficult for all of the partners. There are steps business owners can take to try to ensure a partnership falls into the first category rather than the second.
For one, it is essential to give very careful thought to who you pick as a partner. This will, after all, be someone you may end up working very closely with for quite some time on a range of incredibly important business matters. There are a wide range of questions you may want to ask yourself when considering potential partners, such as:
- How much do you trust this person? Would you trust them with your business and your financial well-being?
- How much experience do you have working with this individual? How has this past experience gone?
- Does the person have strengths that vary from and complement yours, or is there a lot of overlap?
- Are the goals and values of the person consistent with yours?
Preventing future trouble and disputes
In addition to picking the right partner, another thing that can be extremely important when forming a partnership is setting clear expectations. This could help reduce the chances for future major conflicts between partners. Among the things it can be crucial to set clear expectations on are:
- How funding will be used.
- How profits will be split.
- What the responsibilities of each partner will be.
- What authority each partner will have.
- How disagreements on key issues will be handled.
- What happens if a partner decided to leave the partnership.
Well-tailored legal agreements between partners can play an important role regarding setting such expectations.
Addressing problems when they arise
Even the best business partnerships can encounter difficulties and disputes. When this happens, how the partners respond can have major impacts on the partnership’s health, both in the short and long term. So, when you encounter problems with a business partner, giving careful thought and attention to how best to address the issue can be critical.