Business partnerships can achieve a great deal when you have the right person to help you achieve your shared goals. While such partnerships often start out with a great deal of enthusiasm, there’s always the possibility that things can go sour, and then a split may be necessary. To improve your chances of having a long and fruitful relationship with a business partner, you should consider the following tips before committing.

Due diligence

As with any serious business situation you become involved with, you should do plenty of research beforehand. Start by contacting common friends or colleagues for their feedback, check with past business associates and partners, investigate their social media presence, and even inquire from clients they have now or have had in the past.

Put it in writing

Put everything in writing at the outset of a business relationship, so it’s there in black and white and can’t be disputed later. This means you should identify the goals for the company, the individual duties and responsibilities, and even a potential exit strategy. Every line of this document should then be reviewed by your lawyer, so that you can minimize your legal exposure in the event things go wrong.

Exit strategy

It may seem counter-productive to begin a relationship with an exit strategy, but you should always have a plan for dissolving a partnership nonetheless. It’s much better to have agreement at the outset about the division of business assets, in case the partnership falls apart, or one of the partners passes away.

Brand protection

You probably started out your business with a very clear idea about what your company should project, and the message you want to convey to consumers. Be sure that your partner shares that same vision, and agrees about the company image.

Self protection

It’s essential when considering a business partnership that you take steps to protect your personal assets. If trouble develops in the partnership down the road and litigation becomes a possibility, you’ll want to insulate your personal assets against any kind of legal exposure, so you don’t lose them.

For more tips on how to select a business partner, contact the professionals at JNI Commercial Lending today!