It is said that two heads are better than one, and that is often the case. When two people collaborate to achieve important goals, expertise and resources are shared and the goal is achieved sooner. In addition, people who help decision making, some frustrated and celebrate victory. Humans are social animals. Most of us have intimate partners in our lives. Many companies aiming for many entrepreneurs and entrepreneurs want to have partners in the company.
Life and business partners can bring many benefits to the relationship or bring disasters. Most business partners fail, and about 50% of marriages end with a divorce. Your marriage partner and your business partner must choose their eyes through careful attention to the future. The opposite may be attractive, but it is usually unsustainable. Shared values, goals, priorities, expectations, corporate vision, complementary skills are tied together.
Before you start talking to the partnership you are expecting, please catalog the resources needed by the venture to maintain profitability. Let's think about what we are giving up to get these resources. If you need start-up or extended capital, approaching the lending institution may be the best strategy. If you can repay the loan within 5 years and the creditworthiness is high, please consult with an accountant or a banker and make a loan strategy. If specific expertise is necessary for business, write job specifications and hire employees.
If money is the primary issue and you prefer to raise funds personally, some forms of partnership is your financing strategy. Calculate the optimum amount of required capital investment and ask the accountant or business lawyer to estimate the amount of ownership that must be transferred to the investment partner. If you seem to be unable to afford at least 51%, consider taking two partners and giving control to yourself. To avoid deadlocks for important decisions, do not split 50 - 50.
In my business planning workshop, I emphasize that you need to know yourself when you enter business. Please objectively consider how much of others in your business you can tolerate. Your personality type may lead you to seek limited or quiet partner arrangements that believe in your ability to wisely manipulate business partners who most want to make money.
However, we can conclude that we need a general partner with both financial expertise and insight into financial investment and contribution. There are several ways to display challenges, opportunities, and risks, and you need to accept that decisions are separate. These reality is always a big adjustment for the founder.
In addition, you and partners need to clarify relevant roles and responsibilities in the business. Also please mention the time your partner will contribute weekly. Can you live with that? Establish division of labor and write it in the partnership agreement. Please also check the financial history of the estimated partner. Do not partner with a person who has a heavy liability.
Finally, include an exit strategy in the contract. Sometimes things will go wrong and I want someone. We will provide partner buyout options and regulations concerning partner's divorce, illness or death, protecting our business and our customers. Please do not get involved in business with your original spouse, living spouse, or partner's children.
thank you for reading,
Kim
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