If you decide to start a business, you may want to bring a partner into the fold. There are many benefits of a partnership, including additional experience and industry knowledge.
However, before you formally create a partnership, it's important to carefully consider if the person is a good fit. Here are some points of consideration that will help you choose the right business partner:
- Trust: Do you trust the person to do the right thing, every time? If the answer is yes, you can feel confident moving forward. However, if you have any reason to believe they're dishonest, it could come back to harm you in the future.
- Try it out: Rather than jump in full steam ahead, work closely with the person for several weeks or longer. This gives you the opportunity to test the relationship, learn how they work and understand their strengths and weaknesses.
- Responsibilities: Both you and your partner should have a clear understanding of your responsibilities, as this helps prevent disagreements in the future. Outline these responsibilities in your partner contract.
- Finances: Will one or both of you manage the company's finances? Will you both have access to the business bank account? What's your plan for raising funds? Will you both personally invest in the business? These types of questions are critical to answer, as money has the potential to cause a divide in your business.
- How to handle disagreements: It's bound to happen. There will come a time when you and your partner don't see eye to eye. It's best to plan for this in advance, such as by implementing a system for handling disagreements. You hope you don't run into this issue often, but preparing in advance can save you time, money and hassles in the future.
With so many benefits of a business partnership, it may be something you're strongly considering. By reviewing the points above, you'll find it easier to make a confident decision on whom to partner with.
If you're facing a partnership dispute that you can't work out on your own, learn more about your legal rights in Texas and the steps you can take to find common ground.