Entrepreneurs in Texas often need to work with others when getting new ventures off the ground. When considering a partnership, care should be taken to select the right person and to develop a positive and complete partnership agreement.
Entrepreneur magazine recommends that people should only partner with others if they can completely trust them. A business partnership is a very close relationship that requires a lot of give and take and a lot of trust. It may also be wise to find a way to have a test partnership or working relationship before entering into a formal partnership. This might include one person hiring the other as an employee or a consultant for a while.
Another important element to a good partnership is that both people should bring different strengths to the table so that they balance each other out. One person might have a strong financial background and the other person excels in sales, for example.
According to Forbes, a partnership agreement should clearly outline each person’s responsibilities for the business but also who contributed what funds, materials, customers, time and more to start the business. Compensation plans for each person should be detailed as should the plan for how any difference of opinion between the partners would be solved. Another element that people might not think about is to outline the exit strategy for one or both partners. This should include provisions for unexpected events such as the death or disability of one partner as well as the choice to retire or move to another business.