Forming a partnership with another person is a highly successful way of doing business and it is also one of the most rewarding, given that not only do you share in the profits, but the burden of running the business is halved. Having a partnership agreement created at the start by your commercial lawyer at www.rowebristol.com.au ensures that there are no legal curveballs to overcome, and there are several others ways your partnership can thrive.
For a partnership to succeed, there are countless steps each partner can take, but to simplify this, we are going to highlight 5 of these ways, which can influence the success of your business partnership the most.
#1 Have The Same Values
If each partner shares the same values then it is a great foundation upon which they can build their business. By having the same values, sharing the same dreams, and having a desire to achieve the same goals, whilst partners may occasionally disagree day to day on small details, they will both be on the same mission with regards to the long-term success of their business partnership.
#2 Compliment Each Other’s Skills And Strengths
By this, we do not mean say ‘Well done’ to each other (although nothing wrong in that) but instead have a partner where the skills, knowledge, and experience that they have, fit perfectly with those that you bring to the table. They do not need to be the same, but instead complimentary, so a sales expert, teaming up with marketing champion means one partner finds the prospects, and the other turns them into paying customers.
#3 Partner With Someone Who Has A Track Record
Although there is nothing to say that you cannot partner with anyone you wish, including family members, from a business point of view, it is preferable if they have a track record of success. It could be they have been running their own business successfully or have had a successful career that required many of the skills and the knowledge required to run a business.
#4 Make The Business Structure The Right One
There are different ways legally that a business partnership can be set up and your commercial lawyer can advise what would be the most suitable given the circumstances. These include having a general partnership, a limited partnership, and in some instances even setting up a ‘C’ or an ‘S’ corporation might be advisable. There are pros and cons to each, so discuss them all, and select the most appropriate.
#5 Have Clearly Defined Roles and Responsibilities
If neither partner has a clearly defined role within the partnership then the danger is that they end up doing the same task twice or whether something they do is successful or not, who is responsible for that. With each having a distinct job title and their role clearly marked out, not only does it benefit them, but it helps their staff, their customers, and other businesses they deal with too.
If each of those 5 tips is followed it will ensure that not only does your business partnership get off to the best possible start but once it is up and running, you and your partner do not have to waste time figuring out, or potentially arguing over the issues created if you do not. This leaves both of you free to get on with running your busies as it should be and realising the profits that it was created to produce.