The idea for a new business can come from anywhere. Like other entrepreneurs, you may have imagined your concept in your basement or garage, or it may have come from a conversation with a friend.
As your company starts to take shape, you may think about the support you will need to build your business and make it successful. While a partnership can be a solution, it is not the right fit for everyone.
Here’s what you should consider before you bring on a partner.
Beginning with a positive partnership
Whether your partner is an old friend or a new collaborator, starting a new business with someone by your side typically begins with plenty of hope and a willingness to compromise. However, as the novelty wears off, you may start to see conflict in several areas, such as:
- Division of labor
- Shares of profits
- Updates and changes
- Expansions and mergers
While it is possible to mend the partnership, these conflicts can strain your relationship and impact your company.
Choose a partner with intention
Not all partnerships end in conflict and tragedy. There are many instances where businesses and the partners that own them thrive for a long time.
One of the common threads for many of these companies is creating an intentional partnership. Both people should go into the partnership with their eyes open and with an agreement to help them settle a conflict.
A common mistake is to start a business with a partner without a partnership agreement. In the beginning, the partner acts with the same authority you carry, but since they are conducting business in a way you agree with, you have no objections.
Typically, the trouble comes when the same partner acts contrary to your plan. Often, this is seen as an accidental partnership, and it can be challenging to hold your rogue partner responsible for unauthorized actions.
As you look toward the future of your business, it can be an exciting time. When you consider a partner, it is best to choose someone on purpose and create an agreement for your partnership.