A partnership is one of several legal structures you can opt for as a business owner. Rather than facing all of the financial and legal burdens of the company on your own, you can share them. You can also share ideas and the responsibility of day-to-day tasks.
However, a partnership is only beneficial if you choose the appropriate person. The wrong business partner could mean decreased productivity and legal disputes. What characteristics should you keep in mind when choosing a business partner?
You need to get along, overall
Although they can be, business partners don’t have to be close friends. However, there needs to be some sort of personal affinity. Heading to work each day to communicate with someone you don’t get along with is bound to take its toll. Business partners should at least respect one another and be able to communicate effectively on a regular basis.
You need complementary skill sets
Getting along personally is important, but what matters more is the professional dynamic. Having two partners with exactly the same skill sets may not be that productive. You could end up canceling each other out rather than helping each other. Ideally, your skill sets should be complementary. You may be the person who can attract new clients and manage the workforce, while your partner may be better at staying on top of the paperwork to ensure compliance.
Choosing the right partner is only one part of the process. You’ll also need to draft a partnership agreement that protects both parties and the company. Seeking legal guidance can help with this.