Partnerships - Planning


FOUR ESSENTIAL QUESTIONS TO ASK BEFORE ENTERING INTO A PARTNERSHIP

1. Is your partner compatible?
2. Is your partner committed?
3. What’s your partners marital status?
4. Who will own how much of the business


1. Compatibility


Your partner should fill your weaknesses. ask yourself is your partner actually going to help?

A partner should be someone you can get along with both in the workplace and outside, but watch out things can get complicated when mixing business with friendship and family.

Ask yourself how you will get through the tough times and still be friends or live in the same house?


2. Commitment


2 types: financial & time commitment.

Will this be a hobby or a serious venture for your partner?

Is your partner willing to invest? How much? Now and in the future if you need it?

3. Partners Marital status


Does your partner have a prenuptial agreement with their spouse? Your partners share in the business can be seen as a “family Asset” by the courts in a divorce.

YOUR business can then be split up and the spouse can end up being and owner in your company


4. Who owns how much of the business?


Consider the relative contributions (money, contacts, expertise, the invention, brains, or time) and commitment of each partner

It could even be the partners NAME if they are well known or trusted.

Write everything out and divvy up ownership in a way where both partners think is fair now and in the future.

FIGURE IT OUT. THEN GO MAKE SOME MONEY!!

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