Finding the Perfect Business Partner: A 5 Step Guide for Entrepreneurs
The possible benefits of having business partners include the expansion of your client base and the addition of skills and talents to your company leadership. However, partnerships often begin in a haze of optimism but then falter when confronted with the inevitable difficulties and stress of entrepreneurship. Here is a 5 step guide to help ensure that you find the right business partner.
Do Your Research
Before you commit to a relationship with a potential business partner, learn all you can about that person. Interview former clients and business associates. Conduct an online search, and study what they have to say on social media. Get to know them well before agreeing to work with them.
Shield Your Personal Assets
To protect yourself in the event of a lawsuit, keep your personal and business assets completely separate. You can do this by incorporation or by forming a limited liability company, or LLC.
Maintain Your Brand
If one of your considerations at the beginning of the partnership is to protect and maintain your brand, don’t lose sight of this goal. Despite a possible loss of focus due to the effort and time required to make your new endeavor work, safeguard the elements of your business that are important to you.
Use a Lawyer
Don’t depend on verbal assurances in the euphoric early thralls of becoming business partners. Instead, hire legal counsel to put every detail of your new partnership agreement in writing, including company goals, responsibilities of each partner, and contingency arrangements in case the partnership doesn’t work out.
Keep an Exit Strategy
Although you always want to think positively at the initiation of a new joint venture, you need an exit strategy in case you don’t succeed as business partners. This should include what to do if a member of the partnership dies and how you would apportion assets in case of the dissolution of your business.
For more advice on finding suitable business partners, get in touch with Artemis Commercial Capital.