Hi! I have been contemplating on getting a partner for my small home catering business since I'm planning to expand it to a medium sized one. Would it be more practical to have a partner whom I have a close relationship with or rather choose someone who I don't know much but I know to be more experienced in business? Please help me decide. Thanks!
Never with friends that you want to keep as friends. Go with someone you know has good business experience. If "stuff" hits the fan and you have to part, it can be clean and "just part of business". Having a pal being a business partner...just like lending money to a pal....is never a good idea. Keep it clean so stuff doesn't get personal.
I have an excellent attorney who advised me that who your partner is comes second to who owns 51% of the business.If you are thinking of taking on a partner,remember you started the business and hang onto that 51%.Other wise,you will be arguing about issues that neither of you has the power to resolve.Partnerships are the"Bread and butter" of some lawyers because very few succeed.
I'd partner with the stranger with experience...it's all about business....(not as simple as that however, you need to discuss how the business will run etc. with the potential partner and once all aspects are defined - make it legal)
Unless you really, really trust the person you know, AND that person is experienced in your business, AND you would have the ability to tell that person to take a hike if need be, then someone you know could work. For the most part, someone you don't know tends to work the best simply because you can look at it as a strictly business relationship, and anything that happens in that relationship is geared toward what's good for the business. With someone you know, you risk a friendship if it turns out they're not what's in the best interest of the business. Now, it can work sometimes...my husband had a catering business with his brother for quite some time...but those cases seem to be a minority.
whatever you do - friend or stranger - put EVERYTHING in writing - get a business law expert to help you draw up a partnership contract where every single thing you can think of is considered and agreed to - so later you will both know what you are doing. You can also add to the agreement later. Keep TALKING and discussing every decision - make sure you both are clear about who does what and how much. Trust me, if you don't have your business plan and your agreement locked down you will be sorry later.
i totally agree here. dont mix business and friends. it will cause bad blood if something happens later. now, you may become friends later, but keep it professional, and make sure it is always clear that the business comes first.
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