The responsibility of running a business can sometimes be
difficult for even the most experienced professionals. Taking on a partner can
lighten the workload, lessen your financial burdens and improve the overall quality
of your products, services and reputation. Finding a
business partner may seem hard, but finding your rhythm with your business partner is
much harder. If you're thinking about a partnership, consider the
following list and avoid the potential pitfalls, brought to you by BizBoon-the
best company for B2B consultancy services.
Sharing capital
Whenever
you share your own capital, be it money, resources, information or property you
automatically give away your enterprise ability. This is not the right
approach; instead of sharing the capital one must work out an arrangement where
expenses are shared in an associative arrangement. It also makes it easier to
walk away if things go wrong.
Failing to have essential
documents and agreements in place
Having basic partnership or incorporation papers that
outline each party's roles and obligations, as well as other agreements more
specific to the type of business, is key to preventing problems down the road.
This is an essential factor for all forms of partnerships whether it is local
partnership or international business partnerships.
Not having serious
discussions about the future of their company
Without serious discussions about the future of the
business, partners may find themselves at odds with each other as challenges
and opportunities present themselves down the road. Ultimately, this can
gridlock a business if partners cannot agree on a plan of action to take the
company forward.
Not having an exit
strategy
In any partnership agreement, define the terms of an exit
strategy that allows you or your partner to walk away from the partnership.
This can be done very clearly and simply and without imploding the operations
of a successful business.
