Rules of the Road for a Healthy Business Partnership

A business partnership demands the same carethe business, and particularly ensure the business
and attention needed to nurture and grow acan meet all partners' financial, career and lifestyle
successful marriage. As with a marriage, you arerequirements.
well advised to get to know who you're setting4. Assume nothing - communicate often, honestly
up shop with before committing to the deal.and openly.
Partnerships are not appropriate for every5. Before getting into business together, get to
business situation. The first rule of partnering -know potential partners well enough to know
don't partner unless there are good reasons to dowhether you have compatible values.
so. A common misconception by newbies is that a6. Research your potential partner's work and
partnership will lighten the workload and put themfinancial history to get familiar with her track
on easy street. Fact is, with more mouths torecord. If a number of her previous engagements
feed you might have to work even harder tohave ended in a cloud of law suits and conflict,
meet any increased financial obligations.you can be fairly certain that your planned
In spite of the risks, here are a few goodpartnership will too.
reasons why you might want to get into a7. Negotiate and sign a partnership agreement -
partnership.use the services of a lawyer to do this.
* To share the workload8. Prior to signing a partnership agreement, ensure
* To attract someone with skills or knowledgethat you and any potential partners can
you don't already haveeffectively resolve conflicts.
* To bring more money to the table9. Be sure to include a shotgun or exit clause in
* To handle a job or business that is too large foryour partnership agreement. Breakup of a
you to manage alonepartnership can cause disruption or even destroy
* To keep up with a rapidly growing businessa business. A shotgun clause can provide a
* To keep a great person on your team byprocess for a partner to exit in a way that is fair
sharing responsibilities and profitsto all parties.
Here are nine rules of the road to keep in mindIn summary, respect your business and all those
when initiating any business partnership:involved by having a foolproof partnership
1. Partner with people who have different skillsagreement. Be honest and open with your
than you, and clarify your respective roles.partner, communicate often, keep your
2. Define your business vision together and as youexpectations realistic, and be loyal to each other.
grow, discuss and make any changes to thatThese things will go a long way toward building a
vision as a team.successful and profitable business partnership.
3. Discuss your expectations of each other and