Businesses set up as partnerships – legal entities where two or more people own and run a business – enable companies to benefit from multiple owners’ diverse knowledge, skills, and resources. But like any venture, keeping in mind grounding essentials can help make goals reachable and create a friction-less environment for everyone. Patrick Hull, a serial entrepreneur provides the following 5 lessons he’s learned throughout his ventures for the past 25 years.
Not having the right agreements in place can cost you money, time, health and more. It’s important for business partners to have clear partnership agreements drafted by attorneys.
Business partners should consistently set their expectations with each other and communicate as thoroughly as possible.
Think about your clients
When evaluating a potential business partnership, look at your weaknesses and what you need help with. Think about your clients and what type of partnership would benefit them.
It might sound obvious, but still should be noted. Partnerships should be mutually beneficial. Both sides need to gain something from the relationship for it to be worthwhile.
It’s ok to walk away
Like any relationship, a business partnership holds a great deal of promise. However, sometimes it doesn’t work out. That’s alright. Don’t stay in a business partnership if you believe it’s no longer viable. It’s better to end the partnership and regroup than to force something that’s not working.
Finally, partnerships aren’t for everyone. Some people are successful starting a business on their own, others have considered for various circumstances a business partner. Sometimes it works, sometimes it doesn’t.
If you’re starting a business and are seeking the appropriate coverage for your business, get in touch with your UniAmerica Insurance agent today or give us a call at 1-310-835-3373.