You want to bring in a partner. Really? Think about your situation. If you can handle everything alone, then do it alone. Small businesses generally work better as a dictatorship than a democracy. Just as it takes two to tango, it takes two to have a dispute.
When people enter into a partnership profits are divided proportionally based on the efforts and resources being pumped into the business. It may seem fair at first, but things change quickly when there is a bend in the road. Specifically when money is not being made or an issue arises and the partners can’t agree. Most likely, someone will feel as if they didn’t get what they truly wanted when a decision is reached. With that, you have a problem and in the end both parties are likely to end up bitter and unhappy.
If you decide you must have a partner take time figuring out what you need help doing. It is pertinent to identify your weaknesses so you can find someone who can fill the void. Don’t just hire a family member, someone who needs work or the guy down the street. You need to give your organization exactly what it needs. Look for the plus ones who can add to what you are working to achieve.
You also need to do examine your potential partner. If someone is a plus one, chances are that person has a solid foundation of other plus ones. Hopefully, before entering into a partnership, you have looked behind the veil at a person’s life. Do research to figure what crowd he or she are in, will you get along with his or her spouse, what does he or she like to do on the weekends? These facts may seem trivial, but all could potentially hurt your business in the future. Research and find a plus one.
Once you have found the right partner, it is critical to understand the importance of communication. When a business has an internal conflict that requires legal aid, more often than not it is the result of a miscommunication. Decisions and agreements can be interpreted in different ways and lawyers are very good at creating confusion. Bill Clinton said it best, “It depends what your definition of is is.” To avoid this make sure everyone is on the same page from the beginning.
The best way to do this is write everything down and make sure everyone agrees to the terms. After everyone reads it, discuss it in an open forum. It may seem tedious, but a few hours at the beginning can save you thousands of dollars later. This includes discussing goals. Goals can change, but a business needs to start with a direction. With your partners, figure out where you see the business in five years or at a certain point in the future. As your organization grows you can reevaluate and amend the goals so your business can continue being successful.