So many people are seeking partners for their business. In their eagerness to move ahead and have the business of their dreams, they are not spending enough time to know if they are truly a good fit as partners. So rather than move into a full-fledged partnership for the long term…here’s my Super Tip:
(Can you hear the drum roll?)
Commit to a trial partnership for up to a year with the intention to do well. Move into a full-fledged partnership at that point. Make sure you have a well-written no-fault exit strategy. In addition to the time limit and clearly written exit strategy make sure to include:
What each of you is bringing to the table in terms of contribution.:
• Is it finances?
• A physical location?
• Website design?
• Intellectual property?
• Something else?
Here are some questions to ask and get strong answers on:
1. What is the amount of time each of you will be working?
2. Which area will each of you be mostly responsible to work in or oversee others?
3. Decide how you will resolve disagreements or stalemates and write it into the agreement.
4. What happens if only one of you wants to exit before or at the year mark? Can the business continue with the other partner(s) running it? What rights regarding a similar business will each side have?
5. How will the initial contributions of the exiting partner be returned?
6. Is there a timeline to return a financial contribution?
7. How will profits and loses be dealt with?
8. Who owns and can use the trademarks or the name of the business in the future?
Although you are setting this up as a trial, your attitude should be full commitment for the long term. If you don’t, it’s as if you have one foot out the door. Don’t do that! A business that succeeds needs 110% commitment from everyone involved.
From the start, it’s wise to work on the Business Partnership Agreement Template and write your business plan. Don’t be overwhelmed by it. You are learning as you go and will be able to change and modify as you learn.
For further guidance get the free partnership assessment at www.bizpartnerpro.com and in January watch for my book Business Partnership Essentials: A Step-By-Step Action Plan For Succeeding in Business With a Partner.
Feel free to email me your questions: firstname.lastname@example.org
I wish you success in your partnership and business for the long term.