Partnership is a pretty straight forward type of ownership, it relies on the relationship between at least two individuals who own and operate a business. All of those named partners contribute something; money, real estate, work/labour or even just valuable knowledge/skill (doesn’t have to be a tangible resource). These contributions are what earn each partner a share of the profits/business ownership. Partnerships are most commonly those in various professions such as accountants, doctors, dentists, etc. Not just the profits are shared, debts and liability are shared amongst the various partners as well, which is why it is crucial to be strategic and selective when choosing a business partner.
In order to help you choose the best business partner, consider all of the following factors;
- Trust is Key:
Make sure to pick someone that you trust with essentially your livelihood and personal finances. This person will be alongside you and will be partially in control of some of the most important aspects of your business and ultimately, your life. Consider how long you’ve known the person as well as your relationship
- Don’t be blinded by friendship:
Though it may seem fun to go into business with your best friend or significant other, consider the implications of this. Make sure you actually align in terms of values and goals and also, make sure you are confident enough and capable enough to separate business from pleasure for the sake of both your business and your relationship
- Complement is Key:
Pick someone who doesn’t necessarily match or have identical skill sets to you. Instead, pick someone whose skills and strengths complement that which you already possess
- Money is the root of all… partnerships:
Make sure you are both transparent with each other in terms of finances. This can avoid and prevent a lot of future issues, problems and arguments that could be detrimental to your business.