How to Choose the Right Business Partner for You
Choosing a business partner might be even more complicated that choosing a marriage partner. If you’re thinking about bringing someone else into your business, you have to be cautious and make sure that the two of you are going to be a good fit. Here are some of the steps you can take be ensure the two of you will be good business partners.
Do Your Due Diligence
Don’t just take anyone’s word for who they are when you’re getting into business with them. Look them up on Google and dig deep into the search results. Talk to their clients, their business associates, friends and enemies. Check for judgments and liens against them and their business. Really make sure you have a well-rounded picture of who your business partner is.
Get a Lawyer Involved Early
Good business partners put everything about the business relationship in writing, then have a lawyer look at the contract. You may also want to have your accountant take a look at your agreement before signing to make sure that the tax laws aren’t going to be complicated.
Have an Exit Strategy
No one wants to think about their own mortality, but what happens if one of the business partners dies? Or gets divorced? Or just wants out of the business. Have a plan that decides how the partnership is dissolved in the event of the worst-case scenario. It will save you a lot of headaches later on.
Protect Your Personal Assets
Incorporate or become an LLC to protect your house, your savings and your car in the event of a lawsuit against the business. Talk to your attorney and accountant to ensure that your own assets aren’t at risk.
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