Just as marriages don't always work out, there is no guarantee that a business partnership will be successful. Before you enter into a partnership, here are some questions you should ask yourself.
• Why do I want a partner?
Maybe there are alternative ways to solve your problems. For example, if you're feeling overworked, can you hire an employee to share your duties and responsibilities? Perhaps better time management is the answer.
• How well do I know my potential partner?
Consider his/her personality, health, age, family status, lifestyle, and anything else that may affect your partnership. A period of internship with your company might allow you both to get to know each other better and evaluate how well you work together.
• Has my potential partner ever been in a partnership?
Find out about previous business relationships your partner has had. Why did they end?
• Do we have compatible business goals?
For example, do you agree on the amount of debt your business should carry? Are you in agreement about cash distributions from the partnerships?
• What is my potential partner's work ethic?
If you are a workaholic and your partner believes in extended business lunches, you may be setting yourself up for problems. Again, a trial period may bring to light problems you never even imagined.
If you are considering adding a partner, we can act as your sounding board. Give us a call.