When starting work as a business partner, it’s vital to ask critical questions to ensure that you and your partner are on the same page. With proper communication and a clear understanding of the terms of the partnership, it can be easier to work together and reach the desired goals.
To help you get started, here are 7 questions you should discuss with your business partner before you begin working together. Doing so can ensure that you and your partner are on the same page and can work together as a team to achieve success.
1. Project participants: are you ready to start a business with this person
Learn more about one another from a professional standpoint. Everyone will have their priorities, business style, and entrepreneurial experience—even if you’ve known each other since kindergarten. People respond differently in a formal and casual environment, so any relationship should be properly thought through, and feel free to ask direct questions.
Find out the partner’s previous combined business experience, his resources, and what he expects from the next collaboration. It is appropriate to consider whether this person is your partner and how prepared he is for a partnership if they avoid answering questions about their former relationships, avoiding talking about them, or doing any of these things.
And remember that here a good mentoring process is essential for the growth and development of individuals, teams, and organizations.
2. The purpose and timing of the project: what and how will you do
All parties should be able to understand the purpose clearly. It may include the financial outcome, the extent of the business’s assets, the development of particular goods, or the acquisition of market share over a specific period.
This project also aims to work with a business plan consultant to create a comprehensive and effective business plan. This business plan will serve as a roadmap for establishing and growing your business. Working with a business plan consultant is the best way to ensure that your plan is thorough and tailored to your business needs.
3. Financial plan: how much you will earn and spend
The primary guideline is the financial plan. It outlines how much money you’ll need to spend, what you’ll get in return, what will sell for more money, when your investment starts to pay off, and how much the project will make.
Who, when, and in what format creates a financial plan? Before you begin investing and spending, it is crucial to analyze the costs. Realistic financial planning is required.
4. Distribution of roles and resources: who is responsible for what
Each partner has their own opinions regarding what they should and should not do during the project. If one assumes that the partner is reviewing the reports and making investments, his interference in operational tasks will be puzzling and possibly even irritating. Likewise, your partner wanted the same thing from you, and you were confident he would take over any active sales. Everyone assumed that it was apparent and only forgot to say it aloud. As a result, there is no one to advertise the business, and it fails. To avoid such problems, it is advisable to use some task management software.
5. Legal registration: how the company and intellectual property will be registered
Jurisdiction depends on the place of registration – you will submit tax reports and sue. The legal form affects how duties are assigned and how the work’s outcomes—profits and losses—are distributed. The person to whom this individual entrepreneur is registered will be the only one legally responsible for losses if a group of three founders on securities is an individual entrepreneur.
6. Money: how to distribute losses and profits
Money issues can arise in two situations: when there isn’t any and when there is a lot. Oddly enough, the second case causes even more fierce disputes and disagreements.
Survey data visualization is another critical factor in determining how to handle business finances. This process involves presenting survey data visually, such as through tables, charts, or graphs. This allows stakeholders to quickly understand the data, which can help them make informed decisions.
7. Exiting a project: what to do if things don’t go according to plan
Several things might cause a partnership to break up, including changes in plans, a decision to relocate, a weariness with the firm, or an argument with your partner. If not with the world, then at least without conflict, you can part ways thanks to this agreement clause.
Additionally, there are a variety of online resources, such as free coaching software, that can provide guidance and support during times of uncertainty.
And finally, accept the use of mediators to resolve disagreements. Mediators are middlemen who will calmly represent your interests. Their objective is to assist the parties in reaching a good and peaceful resolution to the dispute. These can be reputable financiers, attorneys, or lawyers. You should list specific individuals along with their contacts.