Just how strongly has COVID-19 impacted your business? Please remember that you are certainly not alone if the pandemic has taken its toll. For many business owners, new strategies are necessary in order to get their companies back on their respective feet. In some cases, that means partnering up with another business.
Whether you’re looking to join forces with another brand or begin a brand new business with a partner, there are some key steps that should be taken to make sure the new business partnership works.
Select a partner who has different strengths.
To bolster a new business partnership, it’s important that the two parties involved have different sets of skills. That way, you’ll be able to complement each other and not step on each other’s toes. Having varying talents means that you’ll be able to handle duties your partner cannot and vice versa. Complementary skills make for stronger teams.
“When you and your business partner have different strengths, you’ll double the power of your startup team right off the bat,” says Score.org, “For example, a shy tech expert who wants to start an Internet business would do well to find a partner with sales, marketing and people skills. This way, both partners can focus on doing what they enjoy and are good at.”
Be sure to share the same values.
Your business partner shouldn’t have the exact same skill set as you do. However, he/she should definitely share the same values. It will be near impossible for the business venture to succeed if the two of you aren’t on the same page with respect to where you want the company to go. What are your prime objectives? What advertising methods do you wish to use? How much should be spent on inventory? These and other like questions should have their answers agreed upon.
“Don’t write the first word of your business plan until you know that you and your partner have the same dreams, goals and vision for your new business,” insists Score.org, “Does your partner dream of starting the next Starbucks, while you envision a part-time catering business that gives you plenty of time with your family? You and your partner must share the same core values, goals and work ethic if you want the business to succeed.”
Draw up a good partnership agreement.
After all, business is business, right? It’s an absolute must to get everything in writing. Ideally, you’ll have the help of a reputable lawyer who can help you and your new business partner to draw up a legal agreement regarding the new business venture. As Michelle Kaminsky points out on LegalZoom.com, a written partnership agreement between partners can be invaluable.
“A good partnership agreement lays out the procedures surrounding several eventualities,” she writes, “including what happens to the business and its debt if one partner wants to leave, how a partner may be fired or removed, how partners may be added, how partners get paid, what recourse other partners have if one partner isn’t doing their share of the work, and how the business would be divided if dissolved.”
Are you considering partnering up with another business, but are concerned about the costs that may be involved? Contact Synergy Merchants to find out how our unique merchant cash advance program can help you. Call us at 1-877-718-2026 or email us at firstname.lastname@example.org. You can also apply online for a free, no obligation quote!