Many business owners seek partners to provide unique insights and advantages over competitors. But, how do you know a partner is right for you?
There are a few things that can make or break a business partnership. Here’s what you should know:
Communication
Communication is the backbone of any successful business partnership. It’s often important that both parties are constantly informed. The importance of communication is that neither party is left in the dark about issues, meetings or large decisions. Many partners schedule frequent meetings or make reports to help ensure everyone is on the same page.
Trust
You should be able to trust your business partner. Trust can come in a variety of ways; for example, you should be able to trust that work left to your partner will get done by the date and time needed. You should also be able to trust that your partner can manage the business without you if you have to take some sick leave or need a desperate vacation. And, you should trust that your partner isn’t keeping information from you, such as issues with clients or employees.
Experience
When looking for a business partner to make your business thrive, it may help to find someone with experience. Perhaps you may find someone who has a history of running businesses or had an education in business management. You may also find someone who has previous history with parties that can help your business branch out, connect to more clients or provide insider information.
Contracts
Possibly the most important part of any business partnership is a contract. A well-defined contract can help in many ways. Your contract may outline the responsibilities, obligations and rights your partner has.
You may find a partner you thought would be great for your business but is only creating issues. Your contract may also outline what happens if the partnership faces difficulties. You could state in your contract that a partnership would be terminated if, for example, you found your partner stealing from your business.
When establishing a business partnership, it can help to understand your legal rights.