There are numerous forms and structures that your business can take. For instance, in the beginning, you may start out as a sole proprietorship. As your company grows and you start to realize that you can make a permanent living from it, then it’s likely you’ll need to adjust its structure.
You’re also going to need more people behind you. This includes staff, vendors and perhaps a business partner. Choosing a business partner that is compatible is crucial to the profitability of your company. Choosing the wrong partner could land you in disputes that really stunt your progress. Outlined below are a few important things to consider when forming a business partnership.
You need to be complementary
You have certain aspects of the business covered but you can’t do it all. Whoever you bring in needs to focus on the weaker areas. For instance, you might be able to motivate your team and keep morale high, but you’re falling behind a little with the books. Bringing in someone who is more people-orientated than financially-centered might not be of benefit. In fact, you might find that your authority is being undermined or vice versa, which has the potential to cause clashes.
It’s also vital that your new business partner shares your vision and the core ethos of the company. If they are not ambitious or optimistic, then they are unlikely to have a positive impact. Additionally, if they don’t want to take the company in the same direction then one of you is going to be left feeling pushed out.
Even if you trust your new business partner completely, you need to remember that it’s a professional relationship. This means that it should be backed up by legally binding contracts. You also need to keep the future in mind, with an eye toward succession planning, so that your legacy is preserved well into the future.