You have a business plan, you’ve saved up the money or maybe you’ve secured a business loan. Inevitably at some point in the beginning stages of a new business, whether it’s for added capital or to provide a skill that’s not your specialty, you may consider the idea of bringing on a business partner.
Finding the right business partner can be a huge asset to your company, but the wrong fit could potentially cause issues down the line. Most entrepreneurs are looking for an amicable and long-lasting partnership, but it’s important to consider more than just a culture fit. Determining who you click with may come naturally, but just because they’re difficult, money conversations can’t be brushed aside only to be dealt with later. No matter how tough the conversation seems, you’ll be saving yourself an even more difficult one down the road.
While finding the right personality fit is up to personal preference, there’s no denying that every entrepreneur wants a business partner who’s financially-savvy, or in the very least an effective budgeter. Even successful CEOs run into trouble finding the perfect fit, so what can you do to build a solid partnership? Asking the right questions before entering any sort of agreement will ensure a solid foundation that all starts with knowing what to ask and how to ask it.
Check out the infographic below on money tips for entering into a business partnership:
It should go without saying, but make sure you are equally prepared to answer these questions yourself. Open and honest communication is a huge asset in any partnership, and is best when established right from the beginning. Nate Masterson, CEO of Maple Holistics believes this extends to money as well. “Before going into business with someone, it’s essential that you can trust them, their judgment, and their reliability. Be sure to communicate with your potential partners and discuss their budgeting history,” says Masterson. If you have a partner already, it can still be helpful to sit down and discuss some of these tough questions with them.
You’ll find that the right business partner will become like family and there rarely is a complete separation from personal and professional lives, but that’s half the excitement. If chosen wisely, you and your partner can have an extremely fulfilling career.