Questions

How do you smartly and correctly offer someone into partnership in your small business?

I have an established small yet growing business and just recently bought out my business partner. The company was founded in my youth, not in a smart or correct way, I did not know what I was doing. I was burned. I connected with another individual who is very interested and experienced with goals of being a partner in my business, and I have no idea how to make an attractive offer that makes sense but also protects me. Is it over the course of a few years? Any help much appreciated!

3answers

Hello!
You have to ask yourself: Why I need a business partner?
What value this partner can bring to my business? How much this value costs? Does he/she shares the same values and has same vision like I do?
According to answers you can prepare a nice offer and a small presentation.
But do not forget to connect with your lawyer and prepare all the documents in a proper way, defending your part in the Company. (always do this)
Remember, that conflicts between partners are the fastest way to the destruction of the company.
Have questions? Call me. I am MBA, PhD, professional in business transformation and business development.


Answered a year ago

Be sure that this business opportunity is the best option for you. It could seem, at this point, that you may need a partner but possibly you may need to continue to allow the business to grow.

If you have decided that partnership is the best option for you, be sure to thoroughly vet your potential partner and protect yourself not only from a legal standpoint, but also from a relational aspect as well. Meaning, for example, are you friends with the individual, do you share like values, do you have the same business goals and ideas, and most importantly, can you trust the partner in your absence in all aspects of the business.

Let's talk to ensure this is the best option for you and your future.


Answered a year ago

It depends on what you need from them.
I usually like to define investments in such a way that there isn't someone trying to dictate how the business is run.
That's what happens when you get a partner. They own part of the business and you have to listen to them.
It takes real maturity and organization to make a true partnership work.
If you just need an employee and maybe some of their money as an investment, then you should structure things differently.
I suggest my book, Invest Local, which is full of non-equity ways to structure investments in local small businesses.
Cheers
www.DavidCBarnett.com


Answered a year ago

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