Starting a new business is very exciting, but it can also be very scary, too, especially if you go it alone. That’s why entrepreneur Corey Shader says that many people who start a new business choose to bring on a business partner to help them shoulder the load.
There are many benefits to having a business partner, but it’s very important that you’re selecting the right partner for you and not just any person. Some partnerships don’t result in instant success, while others may never turn out to be successful endeavors.
Here are some things to consider if you’re wondering whether you should enter business with a partner.
Complementary Skills
The right business partner will bring complementary skills to the table. They’ll help to boost up your own strengths while compensating for what you would consider your shortcomings. The reverse is true as well, with you complementing and compensating their strengths and shortcomings.
Having complementary skillsets will help to grow your business and also prevent potential conflict between you two. You’ll each have an area that you focus on, instead of both trying to accomplish the same things.
Before you search for a partner with a complementary skillset, you’ll need to conduct a thorough and honest analysis of what your strengths and weaknesses are.
Similar Values
One area where you should align perfectly is in your values. It’s very important to have common ground on the most basic of principles, including your goals in business as well as the values you hold.
All partners will want to make a profit, but what are your visions for how you’re going to do it? What are your visions for how your company is going to serve its customers, its community and beyond?
When partners align on values, they’re more likely to be driven in the same direction at all times, no matter what happens.
Define Roles
Successful partnerships include clearly defining the responsibilities and roles of every partner. You shouldn’t just discuss in an off-handed way what you think each person should be responsible for. Just like any goal or business plan, this needs to be ironed out in full detail before you form the partnership.
Keep in mind that these roles include not just day-to-day tasks or departmental responsibilities. It also includes monetary and time commitments. Having all of this clearly laid out form the beginning will give your partnership a better chance of succeeding.
Get It in Writing
Corey Shader says that even if you’re partnering with someone you know and trust well, it’s vital to get everything in writing. There are a few benefits of doing so.
For one, it’ll help to prevent against any conflicts or arguments in the future over who’s responsible for what, who owes what and who owns what. In addition, it’ll help the business if, in the future, you are looking to sell the company or raise more money to grow.
Having a legal contract for the partnership also helps to define the equity strategy, the process a partner must follow to buy the other one out and what happens if one of the partners passes away.
About Corey Shader
Corey Shader is a self-made entrepreneur, consultant, investor, real estate developer, and founder of several companies, notably Insurance Pipeline. Operating primarily out of Ft. Lauderdale, Corey’s endeavors span across the nation, consulting for start-ups, and sitting on the board of digital media and senior healthcare agencies. As a consultant, Corey helps young businesses develop sales funnels and maximize profitability. Shader takes pride in challenging others to push themselves to be their very best — he believes in constant self-improvement, inspiring others through sharing his own life experiences.
