Achieving a Successful Business Partnership
Running a business with a partner can be both challenging and rewarding. There are a number of factors that go into making a business partnership work. Here are a few tips to consider with a business partnership:
Choose a Business Partner with Similar Values
It’s important that you and your business partner share the same vision, commitment, and work ethic for your business. Choosing a business partner who shares your values, complements your strengths, and brings their knowledge and expertise will only help the business become successful. It’s also important to foster a partnership that is based on open communication, trust, collaboration, and innovation. That way, everyone is on the same page moving forward.
Define Goals and Expectations
Before entering a partnership, it is important to define goals and expectations for one another and the business. Additionally, having the same end goal in mind is the key to a successful partnership. If one partner wants to build a legacy company to eventually pass down to their children, and the other partner is looking to sell the business to the highest bidder as soon as possible, the end goals are not aligned and this will only cause problems between the partners. Setting clear expectations from the start will only help avoid misunderstandings and build a positive business partnership.
Put It In Writing
Forming a business partnership is a legal commitment, so it’s important to define each partner’s roles and responsibilities. It’s a smart idea to create a partnership agreement that states titles and decision-making, and all the details that are involved in operating the business. No matter whom you’re starting a business with – family, friends, or someone else you know – it’s a must to have a formal legal partnership agreement created.
Having experienced accountants on your side can help with your business plan to ensure that your company’s objectives are being met. JTS Associates CPAs are here to help. Contact us at (516) 877-5900.
