If you are like many entrepreneurs in Texas, you might consider partnering with another person to help get a new venture off the ground. The reasons people enter into partnerships vary and may include increased access to capital, specific industry or market expertise, expanded production capabilities and more. While a partnership may have many positive benefits, it should not be something rushed into.
As recommended by Entrepreneur magazine, business people should carefully evaluate potential partners and partnership agreements before making any final decision or signing a contract. If two people have never worked together before, it might be wise to establish some sort of trial period in which the two can test out their ability to work together and make joint decisions. It will be important for each party to truly understand each other’s style to assess compatibility.
When contemplating partnership agreement terms, you should not overlook the importance of an exit strategy for yourself and your partner. Unforeseen health problems as well as personal disputes can contribute to the need for one person to leave the business prematurely and even quite suddenly. If you have a contract with a buy-sell agreement already in place, it can provide some stability for the business during this time.
This information is not intended to provide legal advice but is instead meant to give entrepreneurs in Texas some things to consider as they evaluate potential business partnerships so that they can protect their interests and look out for the interests of their new business ventures as well.