Starting a business can feel exciting and overwhelming at the same time. Having a business partner can help you deal with the overwhelming part of running a business.
Take time to consider what is a business partnership if you’re thinking about running a business with one or more friends or family members. Then ask yourself three questions about your potential business partner(s).
Business Partnership Meaning
A business partnership often refers to two or more people working together to build a business or a company.
This partnership should be a written agreement between all partners. The agreement usually includes details about each partner’s role in the business, their share of any business income/profits among other parts of running the business.
Three Questions for Choosing a Business Partner
Here are some things to consider when thinking about business partners.
- Does my business partner agree with my business’ goals?
Business partners need to be able to work together. They often make small compromises while making business decisions. This can include decisions about products, services, promotions, social media, etc.
But it’s important for partners to share the same larger goals and vision for their business. For example, you and your partner should share some interest in fashion if you’re running a clothing business.
You and your partner(s) should also share similar ideas on how to balance making money with helping customers.
- Does my business partner have skills I don’t have?
An entrepreneur usually has to juggle many different skills and activities while running a business.All business owners have strengths and weaknesses.
Having a business partner who enjoys and does well in areas that you find difficult or boring can help you get more things done.
- Does my business partner have skills that I need for a short or long time?
You might need help with a specific task or project.
For example, you might need help with writing a business contract or preparing your business’ tax documents.
In these situations, a consultant could be a better fit for you instead of a business partner.
A business consultant can help you with these and other short-term needs that can be finished in a few days or a couple of weeks. Or, maybe you’re still working on another part of your business, such as marketing or promotion ideas.
You could get a business partner who enjoys reaching out to potential and current customers, since this will be an ongoing need to make your business successful.
Final Thoughts on What is a Business Partnership
Many successful businesses have been built by partnerships.
Remember these three questions if you’re thinking about having one or more partners help you run a business.
- Do I share the same goals with my business partner(s)?
- Does my business partner have skills or interests that I don’t have?
- Do I need a business partner’s skills for a long or short amount of time?
Talk to your potential business partner(s) and take some time to think about if a business partnership is a good fit for you and your business.
If you decide to have one or more business partners, be sure to talk with each other regularly about business goals, successes, problems, and decisions.
Doing these things builds a great business partnership and can put your business on a faster path to success.