How to launch a business with a partner
Launching and running a successful business is the top rule for every entrepreneur. Most often, partnership is key to promising growth for the company. Teams of two or more, with complementary skills, working together inspires robust results.
When kickstarting businesses with partners, many start with very little planning or rules. This might spur disagreements and frustration later on. Since there are two or more people involved, with money and the business at stake, there arises room for conflict. How do businesses work to avoid this set-up and sustain a healthy partnership?
The first question to consider would be to gauge if you’d really need a partner at all. Only if the business’ success is dependant on a partnership, should one opt to bring in a business partner.
Ideally, a partner’s technical and professional skills should complement yours, but not overlap. You might have expertise in logistics or finance, while your partner might see the opportunity to innovate or manufacture a new product.
To understand the partner’s skills and personality, try tackling a work project that tests their expertise, cooperation and professional values. Speak to your potential partner’s colleagues or family members to understand how well the partnership might work.
One of the key tools to making a partnership work is communication. At every stage, this counts as one of the biggest means of understanding your partner and forging your partnership.
While a partnership truly does sound exciting, one pointer to flag would be partnerships with family members or close friends. If something in the partnership were to go awry, there are chances that the relationship could get hurt. Keep the partnership non-personal and approach it like you would with a stranger. The same holds true for working with spouses. Set a boundary between your personal relationship and the business. To better manage your personal space, do not let work-related conversations dominate your time away from work.
After the initial discussions for launching the partnership are complete, ensure that you create a partnership agreement. The agreement should address different areas such as remuneration, exit clauses and the responsibilities. It must also cover investment details and specifics about payment to partners. Also include details on how the business can be liquidated if neither partner wishes to continue.
With the legal and accounting formalities in place, work in tandem with your partner and align the company’s goals to ensure the smooth operation of the business. Discussing your expectations, establishing regular meetings, and outlining the future of your business will work towards creating a successful partnership.
