Sometimes, all you need is a partner to help you steer the business in the right direction. It doesn’t matter which kind of company you run whether it be focused on business IT solutions or food, having a partner will help you take care of the operations better. There are many stories of successful business partnerships like Larry Page and Sergey Brin of Google and Ben Cohen and Jerry Greenfield of Ben & Jerry’s. These examples prove that having a partner is always a better option than handling the business on your own. But when should you consider bringing on a business partner? Let’s discuss some of those instances:
#1. Require Cash Infusion
If you want your business to grow, you will need money. Without proper funding, you may not be able to make your business a success. So, if you ever reach a point where you think you need an investor to help fund the operating expense, it will be a good decision to add a business partner who can easily buy the ownership shares in the company. Ideally, should add a person who has some business connections or industry experience. This will help the business generate decent revenue.
#2. Need Specific Expertise
You cannot be good at everything. Sure, you may be the best at some skills but there are chances that you may not be so good or lack other skills that are important to run a business. So, it is recommended that you partner with someone who is an expert at those skills that you lack. This will allow you both to drive the business to success. The owner of Bail Bonds Network Adi Dzebic did exactly that. He formed a partnership with a lawyer and together, they were able to offer high-quality, authoritative, and relevant services to their clients.
#3. You are Spread too Thin
When a business starts to achieve more success, the responsibilities increase, and it can get quite overwhelming for a single entrepreneur to handle all the stress. And when this starts to happen, business owners think about recruiting more employees. However, this is not always the solution. You should consider adding a business partner instead, someone who is just as invested in the company’s success as you are. Moreover, adding a partner will help stabilize income and would contribute to regulating internal processes, ensuring a smooth-running workflow.
How to Take on a Business Partner
While it’s important to know when to bring a business partner, it’s equally important to understand how to do this process:
#1. Change Your Mindset and Vocabulary About the Business
When you add a business partner but keep referring to the business as “yours”, you are unknowingly setting the stage for failure. When you include a partner, the company doesn’t remain solely yours. Instead, it becomes “the” company or “our” company. This small change in the vocabulary will help change your mindset and you will start to take broader decisions that are less personal. Plus, this will give your partner a feeling of ownership.
#2. Take Professional Help When You Add a Business Partner
Unless you have a lot of experience in business law or you have a law degree, adding a business partner isn’t something you can do all by yourself. Therefore, it will be a good idea to take some professional help. The experts will note down the details and their legal eye will quickly identify all the important clauses needed in the documents that can act as a starting point for negotiations with your potential partner.
#3. Agree on the Vision
The partnership will not work, and the business will not succeed if you and your partner don’t share a common vision. It is very important for you and your business partner to be on the same page. Only then, you will be able to steer your business in the right direction. You and your business partner should talk about the vision for both the short-term and long-term.
#4. Agree on the Business Plan
If you have already defined a business plan and then included a partner, it is best to go over it once again. You both can define the steps to make the business a success. You can have a thorough discussion with the partner and see if you both agree on distribution channels, market segments, cash flow projections, funding sources, and forecasted revenues. You can also ponder upon other details such as first hires, plan for ramp-up, and the team needed.
Conclusion
Having a business partner makes sense, especially when your company starts to grow, and the responsibilities become too much to handle. However, taking on a business partner is not as easy as one may think. You will first have to see if you really do need a partner. And when it becomes clear that you, consider the aforementioned four tips that will help you bring a business partner.
