Starting a business with a partner can provide many opportunities for entrepreneurs that they may not have by going solo. They provide a second set of ideas, eyes and resources to help create a successful and thriving business.
To make sure this businesses partnership is as successful as possible, here are the top five things to consider when starting a business with a partner.
- Start with a “pre-nup”– Businesses can be like marriages and will require a written agreement in the event of a business divorce. The agreement should outline what happens if one or both people leave, how those people will be compensated, and how the business will be divided, along with other important agreements.
- Keep it Professional– It is easy and common for two people to team up on a business because of a personal friendship or relationship. However, when working, stay professional. Keep the goals and values aimed toward the best interest of the business.
- Have a cohesive vision– Discuss with your partner the long-term goals of the business. What does it look like in five years? Ten years? Businesses can be structured for a varying amount of time. Be sure you are both working toward the same vision for the business.
- Be clear about roles– Typically, companies have one person in charge of the day-to-day operations of a business. Be clear about who that person is and about each other’s roles from the beginning.
- Have an exit strategy– No one can anticipate when a business may start to go under or have something go awry. By having a clear and fair exit strategy, you are ensuring you and your partner have a clear way out. Define the terms of the exit strategy and include that in your partnership agreement.
For assistance in writing up business agreements, legal counsel, or for help with handling disputes between partners, contact one of the business lawyers at O’Keeffe O’Brien Lyson Foss Attorneys. The experienced and knowledgeable attorneys will help make the business partnership as successful and functional as possible. Contact them today.
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