When you are looking to go into a business partnership it is not enough to simply consider whether you get along. A great personal relationship does not necessarily make for a good professional one. Being prepared for the ups and downs of a business partnership, before you even set foot in a new business venture, is imperative if you want the business to succeed in the long run.
Shared Goals and Values
Perhaps the most important of all things to consider before taking the plunge is, do you both share the same business goals and values? Do you both have the same vision for the business and are you both willing to invest the same amount of assets, time and passion into the venture? You need to be working towards the same goal or it simply will not succeed.
Avoid making assumptions by way of constant clarification. Even though you may know your business partner like the back of your hand, the business environment will require regular clarification through communication. This will ensure that both of you are aware of each others roles, responsibilities and plans for the future. How will you make decisions? Who has the final say? How will either of you handle certain situations that affect the entire business?
Know when to separate work life and home life. Setting this boundary is vital because you will find that partnerships are easily affected by personal lives. Be prepared – a partnership is not like working in a company. Relationships, family and life occurrences will have a greater effect on the running of your business. Keep work and personal lives as separate as possible to avoid distractions and time wastage. Be understanding without compromising the business’ needs.
Put it in Writing
As we discussed earlier, living by assumptions is a dangerous affair. Be sure to set up formal agreements at the start of the partnership. This may include a sales agreement, partnership agreement and even a dissolution contract in the event that things do not work out. Having formal documents that cover the important aspects of the partnership, such as a business plan, will also help you to deal with the ins and outs of running a business.
Follow these steps and you’ll be on your way to a successful business partnership. Be prepared to compromise along the way and don’t be afraid to seek professional help if you are struggling. The Quinn Group can assist you with all your business structure concerns and queries. If you would like more information on how to set your business up as a partnership, please call us on 1300 QUINNS (784 667) or submit an online enquiry to arrange an appointment.