Sometimes business partners form their business form the ground up together, right from the get-go. Other times, a person may start a business or come up with a business idea and then decided that the business could benefit from bringing in a partner. Of course, engaging in a business partnership is not something to do lightly. Your partner will have significant legal rights when it comes to the business, making business decisions, and conducting transactions on behalf of the business. Furthermore, the misdeeds of a partner can have significant implications as far as liability exposure for you and your business. All of this being said, bringing in a partner can be great for growing a business. Let’s take a look at how to go about choosing the right partner for your business.
Choosing the Right Business Partner
Before embarking on your journey to select a business partner, it may be prudent to first reflect on why you are doing so in the first place. This can help guide you through the process ahead. Are you bringing in a partner to complement your own knowledge and expertise by bringing their own skillset and knowledge in a particular area or industry? Are you looking to expand your professional network and access to other industry connections? Do you need a partner who will bring financial resources to help expand the business? The answer to these questions should play an integral role in looking for the right business partner.
Are you looking for a partner with a specific expertise or experience set? If this is a reason for bringing in a partner, be sure your choice of a partner reflects this. Sometimes, a business owner may lack knowledge of or experience in a certain industry. Bringing in a partner to fill this gap can be a great opportunity to solidify business goals and a big step towards accomplishing said goals.
You may also want to focus on finding a partner that complements your own skillset. If you are strong in one area of business, try to find a partner who is solid in another area of business. It takes many different skills to build a lasting business, bringing in a partner can help you do this.
Bringing in a partner can also be a great opportunity to bring a person into the business who has financial resources they can commit to growing the business. Other times, a partner’s value may not be in financial resources, but other assets that can play an integral role in a business’s success. For instance, a prospective partner may have a solid business network you want to access or industry connections you would want to take advantage of.
In addition to looking for a partner that brings some added value into the business, find a partner who is committed to and shares in your vision for the business as well as your business values. Businesses will experience ups and downs. A partner who is passionate about a business from its very foundation is much more likely to weather these storms.
Business Law Attorneys
If you are considering bringing in a new partner to your business, talk to the knowledgeable team at Jones, Gregg, Creehan & Gerace. We can discuss whether this would be a good choice for your business and the potential legal implications of doing so. Contact us today.