Finding someone who shares your passion for your new business can support your new company and your ability to manage the demands of your growing business. The right partner can help you manage the tasks on your plate and provide support in areas where you are less confident.
Part of developing a business partnership is creating an agreement that defines your roles and responsibilities. Your agreement should also include how to resolve disagreements and what should happen if you decide to dissolve the partnership.
Here’s what you should know about creating an agreement for your business partnership.
The future is full of change
You and your business partner likely have many goals and traits in common. As you work together, you will likely find areas where you disagree. While conflict is not necessarily bad, you will need to have a structure for how you will deal with disagreements, such as:
- Investing profits
- Going public
- Task management
- Hiring and firing
Your partnership agreement can designate what method you use to resolve conflicts, such as creating a board of directors who vote on issues or consulting a mediator.
Support for your business
Creating a partnership agreement also gives your business stability. While you may not be thinking about selling your company now, you could have an opportunity in the future where you consider selling your business.
When you have a partnership agreement, you can decide ahead of time how you and your partner will move forward with a potential sale of the business.
When it’s time to part ways
Ultimately, every partnership ends. It may end because one partner is going on to a different opportunity, or it may end because there is a conflict you cannot resolve. When you have a partnership agreement, you and your partner know what to expect and how to dissolve your partnership.
Your partnership is a significant relationship. Creating an agreement will give you and your partner the tools you need to maintain your relationship and your business in a variety of circumstances.