Once you decide to take on a partner for your small business or startup, you enter precarious territory. There’s much more opportunity for things to fall apart when you’re sharing ownership of your company with one or more individuals. Before you commit to taking on partners, consider what can go wrong and create a contingency plan.
You Will Disagree
Everyone’s got his or her own idea about how a business should be run. Who gets the final say when you’ve got multiple partners? When it comes to major operational decisions, being in disaccord can seriously fracture your teamwork.
Before you take in a single cent, sit down with your partner(s) and outline who is ultimately responsible for which areas. Perhaps you’re more operationally-minded, so you can be the final word on decisions in that realm, while your partner is more financially savvy and can handle those tough decisions. As long as you have roles appropriately outlined in advance, you can cut down on disagreements that can undermine your efforts to achieve company goals. Continue reading “The Possible Pitfalls of Partnerships” »