For many small business owners, partnering with another person seems like the next best step. There’s no denying that it’s a smart way to broaden your resources and expand your reach, but, like any decision regarding business development, it shouldn’t be taken lightly. Poor planning could lead to an early separation or a significant financial loss. Before taking the leap, here’s what you and your prospective partner need to consider. 

How Can You Achieve a Strong Business Partnership?

1. Goals

A successful partnership relies on shared values and goals. As beneficial as it may be to join forces now, a legal partnership should plan for the long term. Both parties must agree on the business developments they want to see in the future. If you haven’t discussed the basics of your five- or ten-year plan together, you need to do so ASAP.  Think about factors like the products and services you intend to offer in the future, team development, possible location changes, and your customer base. If you’ve had ideas about expanding to new industries, let the other party know.

2. Resources

Although a partnership can open up the doors to greater assets and financing, it shouldn’t be the primary incentive. When talking about the business developments for the future, explore how profits and workloads could be divided and shared. For example, some resource-sharing opportunities include reallocating staff members to different departments or teams, sharing business contacts, or unifying operations under a more robust workflow system. Real estate is another possibility; if one partner has a significantly bigger office that can comfortably house the workforce, everyone could move to that location.

3. Exit Strategy

Although it’s nice to think that a partnership will last indefinitely, separations are frequent. If that happens, you need to protect both parties from liability issues and disagreements surrounding intellectual property and real estate. You need to have a legal exit strategy in place. Work with a lawyer to draft something that specifically states what will happen with the profits, employees, and everything else when the partnership is dissolved. 

If you’re considering pursuing a partnership, get in touch with the Greater North County Chamber of Commerce. Based in Florissant, MO, they offer a variety of resources for business development, such as consultations and networking events for their members. You can see a calendar of all their upcoming events on their website, but if you have any questions about joining, don’t hesitate to call them at (314) 831-3500.