postheadericon Live Blog

C2 Online Blog 2

rss

Expect expert advice.


Choosing Business Partners (Part 2 of 2) C2online
How do you choose a partner(s) for your business?


As I wrote in the first installment, setting up a business partnership is like getting
married—you need to carefully choose your partner.

Here’s the second of two installments to help you make the right decision in considering
a business partner(s).

4. Financial Capacity and Shares – every business needs capital to run. Are you
clear how much money you need to get the business up and running? Are you
sure you want to have equal shares? Or do want to retain control by having
majority shares? Is he putting in money as well? It’s also crucial to know if the
partner you are considering is financially stable or is carrying a great deal of
debt. If you are taking on a partner, you need to ensure the partner is able to
be responsible financially and can handle any losses. It’s essential you protect
yourself financially when entering into a partnership.

5. Chemistry – do you have at least one common passion or hobby to tie you
together? Do you both want to make a difference in the world? Or does working
in the outdoors energize you both? Whatever that bond may be, it’s important to
have something in common so you enjoy working together over the long-term.
Trust your intuition—if it is telling you this is not the right person, then don’t enter
into the partnership.

6. Exit Strategy – once you’ve considered everything, it’s important to create an
exit strategy before signing on the dotted line. There may come a point where
the partnership is no longer working or valuable. An exit strategy, which has
been agreed to and signed off on by all parties, should be part of the partnership
agreement.

There are no hard and fast rules in choosing a partner but these are six areas
you should consider. If you are going to be working with someone closely on a
day-to-day business, do your homework first and ensure you’ve chosen the right
person.


Comments are closed.
Showing 0 Comment
CMS Website by WebmontonMedia.