If any of you listened on Thursday we discussed the meaning of relationships in business. Most of us have gone out on dates and when we go out on dates we try to find out what we see in the other person that is a compliment to us. The same should apply for a business relationship. 

Before you run off to start your business there are a few things to consider. 

1. Can you trust this person and do you respect what they have to say?
2. Do you feel respected when they discuss topics with this person?
3. Have you seen the resume of this person, if not you should.
4. How long have you know each other and what troubles have you overcome together in the past? This will tell us what kind of character this person has.
5. Do you share the same goals and visions with this company?
6. What do your friends have to say about this person. Most likely your friends will tell you exactly what they think without any hesitation. 
7. What will the breakdown of the partnership 50/50, 60/40, etc.?
8. Have you clearly defined your roles for this new venture with your future partner? How often do people in a relationship get upset because they expect their spouse to do something that was never clearly agreed upon.
9. Create a contract before doing business. This documentation will allow you to both have an understanding of what is to be accepted.
10. Have a clause for leaving the business. If one of you were wanting to move on who would get what. This is called an exit clause. One day someone will have to finish their term with the company. We all can’t go on forever.

Remember business is business and you shouldn’t let emotions get in the way of your business. Times may get tough, but you need to be able to get through tough times with a good partner. If you can’t rely on each other then doing business together is obviously not going to work out. 

I wish you all the best of luck when starting a business. Please make sure that if you are going into business with a partner to define all responsibilities, objectives, share, and clauses throughout your contract. Make sure you sign a contract! Good luck and please keep us informed on how your business is doing or if you have any suggestions on how to build a strong relationship with your business partner.

If you have any questions, ideas, or suggestions please email us at questions@businessonthemound.com.

Tags: contracts, Partnerships

This entry was posted on Tuesday, February 26th, 2008 at 1:27 pm and is filed under Management, Partnerships. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.