Although statistics show that the majority of small businesses are run by individuals, there are numerous advantages to working with a partner. You can accomplish more by sharing responsibilities, take time off knowing that your partner is in charge, and potentially earn more money. Here are some strategies to help ensure that your business partnership succeeds.
Share the Same Goals
It is imperative that partners have the same goals for the company on which they are collaborating. If your potential business partner is content to earn a modicum of income while you are determined to create a national retail chain, you may not be compatible. Work with someone who has the same long-term vision as you do.
Business partners generally have different skillsets and areas of expertise, and it’s important to keep these in mind when assigning individual responsibilities. Find out what each of you excels in, and divide tasks according to these criteria. It may also be necessary to assign one of you the responsibility of making a final decision if you are stalemated. If this proves to be undesirable in your situation, you may sometimes need to rely on the judgment of an outside board when you are deadlocked.
Put Your Agreement in Writing
Although you may begin your business partnership amicably and with the best of intentions, it’s always best to draw up a legal agreement in case things get rough in the future. This agreement should delineate the type of business, the equity held by each partner, your system for handling profits and losses, and your compensation such as pay and bonuses. It should also detail how to divide assets in case the partnership is dissolved and how to formally settle disputes.
Open communication is the key to a successful business partnership. Get together at least monthly to discuss problems, review responsibilities, bring up complaints, and establish future goals for the company.
For more advice on business partnerships and other aspects of running a business, contact Affinity Capital Funding.