{"id":4411,"date":"2022-08-10T08:20:29","date_gmt":"2022-08-10T08:20:29","guid":{"rendered":"https:\/\/michaelleander.me\/?p=4411"},"modified":"2023-09-29T09:38:19","modified_gmt":"2023-09-29T09:38:19","slug":"how-to-protect-yourself-in-a-business-partnership","status":"publish","type":"post","link":"https:\/\/michaelleander.me\/how-to-protect-yourself-in-a-business-partnership\/","title":{"rendered":"6 Ways To Protect Yourself In A Business Partnership"},"content":{"rendered":"\n

Business partnerships are a great idea because all the groundwork that is needed to establish the business will be divided between the partners. <\/p>\n\n\n\n

People opt to partner with their friends, spouses, siblings, and other relatives because of their existing relationships. <\/p>\n\n\n\n

With a business partner, an aspiring entrepreneur will have someone to share and execute ideas with. <\/p>\n\n\n\n

Partners can also rely on each other\u2019s varying skills which can ultimately benefit a dynamic business.\u00a0Consider entering into a strategic partnership<\/a> with a complementary business to leverage each other’s strengths and expand your market reach.<\/p>\n\n\n\n

A written contract or partnership agreement can help strengthen the roles and responsibilities of each partner. <\/p>\n\n\n\n

Doing this ensures that each partner\u2019s skills will be used in the right aspect of the business. There are sources from which you can obtain a business document template<\/a> to help you draft a partnership agreement.<\/p>\n\n\n\n

Unfortunately, business partnerships could go south for various reasons, including disagreements over business operations, finances, and general disputes. <\/p>\n\n\n\n

Unless an agreement dictates each person’s roles and responsibilities, business partnerships could have bitter endings and may even involve a harrowing legal battle. <\/p>\n\n\n\n

So, even if your business partner is a close friend or family member, it\u2019s best to be prepared for the worst and protect yourself and your interests in the business. Here\u2019s how:<\/p>\n\n\n\n

Understand Your Business Partner<\/strong><\/h2>\n\n\n\n

Take time to learn your partner\u2019s work ethic. <\/p>\n\n\n\n

Objectively analyze your partner to know their willingness to make sacrifices for the success of your business. This includes whether or not they can put in the hours as you start the business. <\/p>\n\n\n\n

It’s also advisable to do a background check of your partner to be clear on whether they’ve been in business or other partnerships before and how the businesses they’ve been involved in performed. <\/p>\n\n\n\n

As much as you can, get references if your future partner has been in other alliances. This way, you can get a better view of their character and overall work ethic.<\/p>\n\n\n\n

Have A Partnership Agreement<\/strong><\/h2>\n\n\n\n
\"\"<\/figure>\n\n\n\n

A partnership agreement is a document that outlines the responsibilities, obligations, liabilities, and other terms and conditions of each partner. <\/p>\n\n\n\n

The partners should prepare and sign the contract before they begin any business engagements. <\/p>\n\n\n\n

It’s advisable to hire an attorney to help you draft an agreement. The document will help establish liabilities and boundaries. You can even contract a company dealing in business formation services for guidance. As per this post on Incfile alternatives by SmallBusinessHQ<\/a>, some of these companies even provide access to dependable lawyers.<\/p>\n\n\n\n

With a partnership agreement in place, disputes or disagreements can be resolved amicably.<\/p>\n\n\n\n

The agreement should contain the following:<\/p>\n\n\n\n