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Tips on creating a business partnership

by | Jan 13, 2019 | Business Litigation |

Many people in Florida have dreams of owning their own businesses. In some cases, this may be achieved by working with another person and establishing a partnership. However, it is important that entrepreneurs proceed with caution before signing up to partner with another person as there may be serious legal and financial ramifications if a partnership does not work out as intended or hoped. 

According to Inc. magazine, there are some things that partners should have in common and some things they should not. Values, a work ethic and expectations for the business and each other should be shared for maximum synergy between partners. Skills, knowledge and even industry contacts may be best if not shared so that each person can bring something unique to the business and provide strength in different areas.

Entrepreneur magazine indicates that it is also very important for potential business partners to consider some of the less-exciting or pleasant parts of running a business when developing their business plan and partnership contract. This includes identifying a resolution path when the partners disagree. Contracts should also include an exit strategy for one or both partners to accommodate unforeseen circumstances.

The financial or other contributions of each person should be clearly outlined. Plans should also indicate how capital will be raised and how profits or losses will be distributed to each partner. Assuming each person has unique skills, these should be used to dictate which area of the business each partner should have primary responsibility for in the company.