Partnering with someone else to start a business has its perks. You don’t feel so alone in the process, and you have another person to be excited with regarding the venture. You also have someone who can take on a share of the stress and responsibility, which is a major benefit when starting a business. However, if you aren’t careful, a joint venture can become a terrible relationship and a business mistake.
One common problem that many partners face when starting a business is that they both want complete control over everything. When you start a business with someone else, you have to be able to communicate well and be willing to compromise. One thing that works well is defining responsibilities as soon as possible — one partner might be in charge of sales while the other handles development, for example.
Both partners need to have reasonable expectations about both costs and profits. With two people making decisions and spending money, cash flow can be a problem and start-up capital can go quickly. With more than one person dipping into the till, you need rules, and both people have to follow them to the letter. Once one person starts making exceptions, the other will too.
Our firm works with individuals to help them form all types of business organizations, including partnerships. We can help you understand the legal ramifications of a partnership choice and work with you to draft a concrete contract that can help govern your joint venture. We also represent individuals who already have a partnership but have a legal issue with either their partner or another business.