If you’d like to share the successes and have support to deal with the challenges of owning a business, partnership may be the right business model for you. You’ll find a partnership brings diversity to your company. And you may find it personally rewarding, too, since business partnerships can build leadership and communication skills.
When considering entering into a business partnership, keep the following tips in mind:
Choose a partner to complement your strengths
A company needs leaders who are innovative, productive, collaborative, and steady. Since most people only have two of those four areas as strengths, finding a partner to balance your skills ensures you’ll be able to successfully address most challenges.
A business partnership allows you to recruit talent without the hiring costs
Offering an equity stake in the company will likely attract the talent you need.
A partner adds value to your business
A partner who balances your skills brings new ideas and acts as a constructive ‘sounding board’ for yours. The collaboration and challenges a business partnership provides uncovers opportunities and grows the business faster than a singular viewpoint.
Spend time developing a personal relationship with your business partner
Your professional relationship will be more productive if you and your business partner respect and value each other. Make the effort to talk about what’s important to both of you so you’ll be aligned on the overall objectives of the business.
Sign a contract naming a decision maker
Equal partnerships can be difficult because if consensus can’t be reached, decisions won’t be made, and the business can quickly stagnate. In addition to naming the final decision maker, a contract outlines terms of separation if the business partnership dissolves in the future.
Talk with our experts at Bear River Financial about solutions to support your business partnership. We’ll stand beside you and help you transform your business potential into reality.