Choosing a business partner for your retail business is a challenge and not something to undertake lightly or without thorough consideration.
Too often, friends go into business without discussing business too much beforehand. The result is often a break up in the first year or two and damage to what was a good friendship.
If you are facing deciding whether to bring someone in as a partner to your retail business, consider these steps for evaluating whether the two of you would make good business partners. Some steps are logical and commonsense in their approach which others are deliberately left field.
Agree on a business plan. This is the foundation of the relationship. Develop a business plan for the next three to five years together. Ensure that you both wholeheartedly agree on the business plan, thoroughly talk through any areas where you disagree. Once you have a business plan on which you agree, consider getting an independent opinion. Seek to be challenged on your business assumptions.
Negotiate a partnership agreement. This should document the whole relationship including financial obligations, shareholding, areas of responsibility and exit plan contingencies. The partnership agreement should be reviewed by lawyers for each party. This is not something to be cheap about. Good independent legal advice up front could help you save financial and other problems down the track.
Check in with extended family. Even though the partnership agreement and the running of the business may come down to the two of you, it is common for families and even extended families to get involved. Both potential partners should ensure that they are comfortable with everyone who could have an opinion about the business. It is better to get all the potential issues out in the open now, before it is too late.
Go on a challenging holiday together. This is the most important tip. No matter how well you think you know your potential business partner, until you have relied on each other in challenging situations you cannot know how each of you will react. Invest some money in a challenging trek or some other close quarters outdoor holiday where the two of you need to work as a team. There are plenty of businesses which run such trips.
Take your time through these steps, be open with each other about everything you encounter and think. It vitally important to the health of the business that you trust each other and these steps should uncover whether this is the case.
If you are only pursuing this partner for access to funds then think again.
If you are expecting a workload mix which is different to what has been discussed and agreed, think again.
If you have any doubts at all, think again.
Actively and thoroughly work through the process and you will either avoid a mistake or you will establish a long, profitable and mutually respectful partnership.
Author Resource:-
submit article has been writing articles online for nearly 2 years now. Not only does this author specialize in Retail Business
You can also check out her latest website about :
wholesale gift shop itemsWhich reviews and lists the best
wholesale tealight holders
![[Valid RSS feed]](http://article2008.com/images/feed-icon.png "XML Feed For RSS"){kind=icon}
![[Valid RSS feed]](http://article2008.com/images/icon_Rss.png "XML Feed For RSS"){kind=icon}
Category Rss Feed
Print This Article
Add To Favorites