Added: Laverna Guerrero - Date: 22.10.2021 15:14 - Views: 44074 - Clicks: 7089
Like a marriage, a business partnership often begins with enthusiasm and high expectations -- only to end in acrimony and legal proceedings. It's important to know as much as possible about a potential partner, including how their finances and family life may affect the business, before ing on the dotted line. Here are some questions to ask before deciding if partnering is a good idea:. You should look for a business partner who brings something different to the table than you do.
If you're Questions to ask potential partners, maybe you need a more detail-oriented partner. If you have money to invest in the business, you may want to look for a partner with access to a market, or with great connections. Or if you're shy, you might need a good "people person" to balance the equation. Moore, founder of the Moore Firm in San Diego, a law firm that serves entrepreneurs.
It is important to have an understanding of someone's financial status and commitments before getting into a venture together. Partners don't have to spend the same amount of time, but it is important that they are on the same as to each other's expected time commitments. How many hours a day does your partner expect to put into the venture, and do his expectations meet yours?
A partnership -- especially one between friends -- can start off with fun and excitement, but within a short time, the slog of every day catches up with you. If they're not as committed to the business as you, they may Questions to ask potential partners their enthusiasm and may actually be damaging the brand every time you open your doors.
If your potential partner has a pregnant wife or is taking care of an elderly parent, he may be distracted from the business. That's why you have to be brutally honest when thinking of forming a partnership. It's important to know what your potential business partner will do if he has his back up against the wall -- and it will happen, Phibbs said.
The best way to discover this is to look at what he's done in past business ventures. If he couldn't meet payroll, for example: Did he do the right thing and dip into savings or borrow from a credit card or a friend? Or did he pay employees late, or not at all? Or worse, did he skip paying payroll taxes?
It all comes down to character issue, Phibbs said, adding, "Payroll taxes are a federal obligation. If that's negotiable, you can bet your partnership is also negotiable. If a potential employee doesn't ask any questions in a job interview, you might be less likely to hire him because of a perceived lack of interest. The same applies to a potential business partner, who should want to know about your character, reliability and expectations. If they say it doesn't really matter, it could mean two things: their expectations are too high or they might be kind of flighty," Phibbs said.
A lot of people seem good at first, but that may be their skill -- seeming good at first, Moore said. Once they get their foot in the door, it may be difficult to get them out. Talk to former employees to see what they were like to work with, or for. If you're looking for someone with money connections, verify that they have money. If they say they have great connections, see if those connections go beyond just being recognized and given a slap on the back. Many partnerships are cemented with a handshake, but this can be a recipe for disaster.
It's crucial to put it on paper -- not only what is expected of each partner, but the consequences if expectations aren't met. If someone has a family emergency and disappears the first six months of the business -- even though it may not be through any fault of his own -- are you still expected to give that person a certain percentage of the business?
If you can get someone to do something without giving them a stake in your business, it's always better, Moore said. People get wrapped up in the idea of needing to work with someone, but it's not always a good idea. Sometimes you need somebody to show up from 9 to 5, work hard and go home, he said. Most people don't envision the rough times ahead for a new venture, so this question is probably the hardest to remember to ask and the beginning.
Yet, the best time to address potential problems with your partner is at the beginning before emotions run high. Entrepreneurs require more than just money, which is why we aim to empower you, as well as act as a catalyst for value creation. Latest Video Start A Business.
Having a partner could share the load Next Article link. Lisa Girard. February 21, 7 min read. Opinions expressed by Entrepreneur contributors are their own. Image credit: Shutterstock. Image credit: graphicstock. More from Entrepreneur. Entrepreneur Select: A Fund For Entrepreneurs, By Entrepreneurs Entrepreneurs require more than just money, which is why we aim to empower you, as well as act as a catalyst for value creation.
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50 Questions to Ask Your Partner to Connect on a Deeper Level