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Choosing a Business Partner
Posted by B2B on: 2006-01-03 17:07:33
Choosing a Business Partner
Eran Salu, JD, MBA, CPA
In choosing the right partner you must consider a number of
factors. If you chose your partner wisely you will share the
risk and alleviate some of your anxiety that is part of going it
alone. Here are some factors to consider when selecting your
partner:
CHECKLIST FOR CHOOSING A PARTNER:
* Does this person bring expertise I don't have to the business?
* Does this person share my values, ethics, and goals for the
business? This is very important! You must not hesitate to bring
up these issues in initial discussions with your potential
partner. If your partner's idea of business is to get rich quick
at the expense of others, you might want to reconsider. Discuss
with the potential partner both your short and long term
business goals and determine if they mesh with his or hers.
Better you find out about possible incompatibilities before
making any formal commitments. Ted and Bill were perfect
partners, or so it seemed. Different areas of expertise, common
goals, both had money to invest in the partnership. Because they
were such long-time friends, they never talked with each other
about issues that might cause problems in the future. They knew
they had a good idea and worked well together and that seemed
enough. Unknown to Ted, Bill was about to get a divorce. As
female readers know, many men generally do not talk about
personal matters, even among good friends, to any degree.
Because of Bill's divided attentions, the partnership dissolved.
Too bad, since altering the timing a bit might have saved the
partnership and another good idea.
* If the partner is a spouse, does he or she share my same
convictions about starting and operating a business?
* Does the potential partner share my qualities as an
entrepreneur?
* Does this person have family or other personal problems? Be
frank and ask the question! You are going to have enough
problems with the new business and you cannot afford the
additional stress that is brought on by non-business problems as
well.
* How well do you know your potential partner? Like a marriage,
you are going to be working together through good and bad times.
Don't be too quick to get involved with someone who is just a
casual acquaintance. Has this person been in a partnership
before? How did it go?
Do not be quick to make a decision. An ineffective partner is
much worse than no partner at all. When you have picked a
partner, the next step is to formally (with the help of an
attorney) lie out respective responsibilities of each partner.
Plan to the extent possible, for unforeseen circumstances.
CAUTION. It is always hard to really know how someone - even a
good friend or family member - will react in a
business/partnership situation. If possible, work together on a
project or two with your potential partner (before any
partnership agreements are signed). This way you both can assess
each other before a formal commitment is made.
http://www.TotalBusiness.com is a Website that provides business
owners with the information they need in order to successfully
start, manage, grow, and sell their businesses.
The site features over 3,000 articles and 60 guides on business
topics such as starting a business, financing a business, sales
and marketing, building a website, setting up an office, hiring
employees, and selling a business. The site also contains
articles on legal and accounting issues affecting businesses and
allows business owners and entrepreneurs to get free expert
advice from local lawyers or accountants. The site contains over
1,000 business forms and agreements that are helpful to business
owners and provides a business directory with over 1,700
merchants who provide services specifically for small
businesses.
About the author:
Eran Salu, JD,MBA,CPA is the Founder and CEO of
TotalBusiness.com
Open community website
http://www.business-business.biz
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