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7 Best Tips for Making a Business Partnership Work

One of the benefits of beginning your own business is being able to pick and choose who you want to deal with. If you want to start a business with a close friend, family member, or former coworker, don't think everything will go smoothly just because you know one other. Business partnerships, like marriages, can encounter difficulties.

Follow these guidelines to keep your business collaboration on track.


1. They have similar values

Don't start writing your business plan unless you and your partner agree on the same aspirations, goals, and vision for your new venture. Do you envisage a part-time catering business that allows you to spend more time with your family while your partner dreams of opening the next Starbucks? If you want the business to flourish, you and your partner must have the same basic beliefs, goals, and work ethic.

2. Find a partner who has abilities that compliment your own

You'll instantly quadruple the power of your startup team if you and your company partner have diverse strengths. A shy IT specialist who wants to create an Internet firm, for example, would do well to partner with someone who has sales, marketing, and people skills. This allows both spouses to concentrate on what they enjoy and excel at.

3. Have a history of working together

It is not necessary to have managed a business together or even worked together in the past to succeed as business partners. It does, however, necessitate a track record of effectively overcoming similar obstacles in the past. Look for a partner with whom you've already dealt with disagreements, achieved similar goals, and weathered difficult times.

4. Clearly outline the roles and duties of each partner


In the early phases of a business, an informal structure where each partner does what is needed at the time may succeed, but not in the long run. By providing each spouse authority of his or her area, defining each partner's job title and responsibilities helps to eliminate conflicts. Employees and consumers benefit from understanding which partner is in charge of various elements of the company.

5. Choose the appropriate business structure

A general partnership, limited partnership, or limited liability partnership are all options for forming a partnership. It can, however, be organized as a C corporation or a S corporation. In terms of liability, taxes, and continuity, each type of business offers advantages and disadvantages. Consult an attorney or other knowledgeable counsel to help you decide which business structure is best for you and your partner.

6. Put it down on paper

Even if you're starting a business with your kindergarten best buddy, you'll need to draft legal paperwork that cover your business structure, capital contribution, decision-making process, dispute resolution, and what happens if one partner wants to leave the company. It's easier to deal with any challenges that come if you go through all the things that could go wrong and how you'll address them.

7. Be open and honest with one another

Because you don't want to harm your business partner, soft-pedaling your actual feelings will generate more problems than it solves. To make a relationship work, both of you must feel comfortable sharing your thoughts and working out any differences that develop. Sweeping your issues under the rug will only lead to anger and animosity, which will eventually ruin your partnership—and your business.


These are difficult topics to broach, especially when you're ecstatic about your startup and can't wait to get started. Your new firm may never get off the ground unless you take the time to set the groundwork for a long-term business collaboration.




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