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How to Choose a Business Partner
Choosing the right business partner is critical to your business. A strategic partnership should be mutually beneficial: a win-win for you and your partner. You and your partner(s) should have different skills and expertise, and bring different benefits to the business and your customers.
Consider Your Options
Evaluate what each of you bring to your customers and the business.
Do you share the same business goals and family values?
Does your potential partner share your personal values and work ethic?
Perform your due diligence: is your potential partner financially stable, are they involved in any lawsuits or legal liabilities, do they have a good reputation in the community?
Establish your bottom line, deal or no deal. Know when to walk away: not every partnership, or potential partnership, will succeed.
Once You've Chosen a Business Partner
Make it formal. Put your agreement in writing with the help of an attorney so there are no questions about profits, decision making or percent of ownership.
Be honest. Set up a regular communication channel, such as monthly meetings, to discuss the business and evaluate the partnership.
How will disputes be resolved?
Can you buy out your partner or change ownership percents?
Under what criteria can the partnership be dissolved?
This creates a private checklist in your account.