Business partners are quite common today. It often takes two or three people to get a new enterprise off the ground. It’s not only money, but time and commitment required to build a thriving business. How can you tell if you have a strong partnership? Answer these five questions.
Do you have a strong partnership agreement?
When working with another person, even if its family, a strong written agreement drafted by an attorney will save you a lot of heartache. Don’t think just about your business succeeding, but about its failure, too.
Do you have clear expectations?
A business partnership is often compared to a marriage. Just as in marriage, the other person can’t read your mind. If you can’t talk about your expectations, you shouldn’t get into business together. Talk about your goals and objectives, not just business-wise, but about where your life is going.
Is the partnership mutually beneficial?
A one-sided partnership will quickly fall apart. Both parties in the partnership need to benefit for the relationship to work. Even silent partners should get something for their investment.
Is there balance between the partners?
Consider your weaknesses when you’re adding a partner. Ideally, business partners should balance each other out. If you are an introvert who has a problem networking, look for a business partner who is an extrovert and doesn’t ever meet a stranger. If you don’t understand finances, get a business partner who can provide that piece of the puzzle.
Can you walk away?
Not every business works out. There’s nothing to be ashamed of if your business isn’t on a path to success. If you’re in a business partnership where you’re afraid to walk away, you may spend thousands of dollars trying to make something work that isn’t going to. It’s better to start fresh than keep pouring money into a business that isn’t viable.
Business partners aren’t always the solution. Contact GrowthCC for lending options to keep moving forward without giving up equity.