Are you Business Partners ? There are certain things that Partners must sort out. Do not wait until there are problems with your partner when it will be far harder to find a solution.
- You and your partner will not always agree. That is normal. However what if you have a major disagreement on something major or very expensive. You will probably have a 50:50 share in the business so you just have deadlock. Decide what you will do – consult a third party, not do something if both do not agree and the loser agrees not to sulk. Whatever it is that works for you both but agree something
- You will trust your partner when you start but do not be blind. Both keep an eye on the business accounts and finances. Remember you are both liable for the total of any business debts . So if your partner disappears abroad suddenly having not paid the bills- it does happen- it will all fall to you. Lack of knowledeg is no excuse.
- One day one of you will want to leave the business. Agree on what then happens when the partnership comes to an end. Do not have the business just stop because as 50;50 owners you cannot agree who has the name , who has the customers etc.
- What to the partnership if one of you has a major accident or falls ill.If you both have to sign everything the business will grind to a halt.Even if not can the business afford to pay someone to do the work of the sick partner . There are various solutions but think this through.
- Have a partnership agreement to record what you agree. Do not assume something will not happen to you. Litigation costs money and can be avoided by a little preparation.