Are you discussing a potential partnership that could benefit your business? Before you agree to any terms, you may need to make a lot of considerations, such as where you see a partner in your business.
Here are a few things to consider before agreeing to a business partnership:
What is this business partner’s history?
A potential business partner’s history can tell a lot about how trained and experienced they are and how well they work with others. This partner may have gone to business school and trained behind several large companies. This could be a good sign that your business would benefit from this partner. However, if this partner has a history of discontinuing partnerships with others, then this could be a sign of a short-lived and difficult professional relationship.
What will this business partner be in charge of?
One of the main benefits of having a business partner is dividing operations. As many business owners are, you may be strongly suited to run part of your business and a partner would handle the other parts. Knowing what you intend a potential business partner can help determine if a professional relationship is good for you. Furthermore, a partnership agreement should clearly state what a partner would be expected to do in your business.
How would disputes be settled?
There’s always the possibility for a dispute to create issues between you and a business partner. A partnership agreement can outline what happens if a dispute with a potential business partner goes unresolved. This may mean discussing the issue and finding a compromise instead of going to court or ending the relationship.
If you think a partner is right for your business, you may still benefit from reaching out for legal help and learning about business partnerships.