Ami Kassar is founder and chief executive of Multi Funding, which helps small-business owners find the best business-loan options. As we went through underwriting, it came out that one of the new partners in the business had extensive legal problems from a previous career.
You spend ample time dating before you get married, and you should treat your relationship with a potential business partner the same way.Entering into a business partnership is a serious commitment of time, money, and reputation.Knowing as much as possible about your business partner before formally signing on the dotted line to partner will save you a lot of trouble down the road.It's important to understand your potential partner's finances, time commitments, personality, and long-term goals before making the relationship official.Sit down with your potential partner and realistically discuss how much time each of you can commit and what the job responsibility breakdowns might look like.
If your potential partner seemingly will have trouble pulling his or her weight, it would probably lead to your taking on more responsibilities and stretching yourself too thin over time.They say that in relationships, opposites often attract.How your potential business partner manages her money can tell you a lot about how she will run your business.Although it might be uncomfortable to ask about certain matters, knowing whether she is buried under a huge mortgage or monthly child-support payments could sway your decision to partner.Someone who has hefty outstanding financial obligations, an unreasonably low credit score, or is obviously living beyond her means is probably not someone you want to trust with the financials of a future business.In a domestic partnership, there are certain shared responsibilities that each party is expected to carry out--cleaning, shopping, taking care of children, paying bills, etc. Though business partners don't necessarily need to spend the same amount of time on the business each day, each partner is expected to carry the same weight in terms of business responsibilities.