Picking the right business partner for your next business venture can make or break your business. Before you decide to become business partners with someone it is important to carefully evaluate if you are a good fit to work with each other.
You may want to consult an Illinois business attorney who can help you with a partnership agreement. It is also important to determine the roles and responsibilities of each partner and have a plan for how you would handle a partnership dissolution.
Here Are 5 Things to Consider Before Entering into a Business Marriage:
- Make sure that you’ve known your business partner for at least one year or more. If you’ve known someone for a year you will be able to see if they are reliable and trustworthy. Just as you would give marriage deep thought and consideration the same needs to apply to a business partnership.
- Determine if you’re on the same page: determining if you’re on the same page is one of the most important factors of evaluating a new business partner. It is important to discuss aspects of the business and see if you are on the same page. If you can’t even agree on basic things initially, once you have the business up and running there’s going to be a lot of conflict. It is critical to get a glimpse into their values and morals which will help you determine if they are in alignment with yours or not.
- Determine if they compliment you: the whole point of a business partnership is that one partner is good at doing certain things and the other partner is good at other things so that each business partner brings value to the business. It is best to have an open discussion about which parts of the business that your partner will be handling versus you. Furthermore, evaluate their skills and personality traits to see if they complement the business.
- A business marriage is a lot like marriage: because you will be spending so much time together you have to see if you are if your personality types are good fit, you must determine if the other person is accommodating, understands your point of view, and is willing to be flexible and compromise when necessary. If they’re not willing to compromise in the beginning they will not be willing to compromise in the end and that can lead to a toxic business partnership.
- What contributions will they be bringing to the table: the whole point of a business partnership is so that the burden of the business is not all on one person. So, what is it that they’re going to contribute and how much time can they contribute to the business? Are they going to be a silent partner or are they going to be an active partner? It is important to have these conversations upfront so that you don’t get stuck doing the bulk of the work for the business and they’re just taking the advantages of the revenue coming in.
Consult a Champaign Business Attorney for Guidance on Your Business Partnership
If you are in the process of picking a business partner in Illinois or starting a new business in Illinois, contact Rincker Law PLLC to assist with the process. Rincker Law can assist with setting up your business structure and setting up a sound partnership agreement to protect you and your business partner. Contact Rincker Law PLLC today at (217) 531-2179 to schedule a consultation.