It is impossible to overstate how carefully one must approach
starting a business with a business partner. First and foremost, there
must be open and honest communication about each person’s vision for the
business, goals and exit strategy, roles, abilities and limitations,
and there must be appropriate documentation prepared setting out what
the business relationship will look like. This documentation usually
takes the form of a shareholders’, operating, or partnership agreement.
The Wall Street Journal also prepared an insightful piece on the topic
that is worth reading:
“Business partners often start businesses together with little
planning and few ground rules. Sooner or later, they discover the hard
way that what’s left unsaid or unplanned often leads to unmet
expectations, anger and frustration. Partners can clash over countless
things, including conflicting work ethics and financial goals, roles in
the business and leadership styles. What follows is a primer on how to
avoid that and set up — and sustain — a business partnership.
First, ask yourself: Do I really need a business partner to build a
successful company? Taking on business partners should be reserved for
when a partnership is critical to success — say, when the prospective
partner has financial resources, connections or vital skills you lack.
You may be better off hiring the other person as an employee or an
independent contractor.
Communication is important at every stage of a partnership, and
especially so at the outset. A common mistake business partners make is
jumping into business before really getting to know each other. You must
be able to connect to feel comfortable expressing your opinions, ideas
and expectations.” read more here.
This blog post is not intended to consist of legal advice and you
should always consult with a lawyer before acting on anything you find
on the Internet. If you have questions or comments about this post,
about the topic, or if you need legal assistance, you should feel free
to give us a call or send us an email. Let us know how a Brooklyn business partnership lawyer can assist you.
