by Pamela Gold
"There's nothing worse than a bad partnership and on the other hand, there's nothing better than a good one. It can be very rewarding to share success with a partner along with having a sympathetic ear on the bad days," explains Marc Kiekenapp, Executive Vice President of FranchiseBuyer, a nationwide network of seasoned franchise consultants dedicated to helping qualified prospective franchisees find well-matched, high quality franchise opportunities.
If you're ready to buy a business of your own, but don't feel completely ready financially or with regards to your business ownership skills, finding a suitable business partner could be a great solution for you. Perhaps you simply want to share the risk, hard work, and ultimate rewards with a friend, relative, or fellow entrepreneur. Finding a business partner can be a great experience, as long as you find the right person for the right reasons, and make a sound, legal agreement in writing.
Why Consider A Business Partner?
When considering the idea of having a business partner, the first question you must ask yourself is, why do you want or need one? Is it for financial support, expertise in a field, companionship, or to divide the workload? Based on your reasons, Kiekenapp suggests choosing, "a partner that compliments your skills and personality. It makes no sense to duplicate patterns. A partnership should have both parties bringing different skill levels and ideas to the table."
Plan Ahead and Be Smart
Once you've identified your reason for wanting a business partner, you can go ahead and search for that person. Whether the person is a friend or family member, or someone you have just met, Kiekenapp suggests laying the ground rules up front. Decide how job responsibilities, final decisions, work ethic, and financial responsibilities will play out long before you open the doors to your new business. Also, he suggests you have an exit strategy if the partnership doesn't work, if a partner moves, or if a partner passes away. If you do not have a detailed partnership agreement, for example, a spouse might want to take over as a partner, or a worse scenario can take place.
A Partnership Agreement
If you're considering the idea of buying a franchise with a business partner, you should have a properly written partnership agreement. Buying a franchise and signing and sticking to the rules and regulations included in the franchise agreement will make a business partnership even more complex. Thinking about possible situations, both positive and negative, before they occur, can save a partnership and a business.
A partnership agreement and the time and thought that goes into drafting this document will be well worth it if anything unexpected occurs during the lifetime of your business. The agreement will clearly state what each partner's investment is, what each partner's responsibilities are, how conflicts will be resolved, what happens when a partner becomes disabled, moves, or passes away, and other details of the partnership. It is highly recommended that you contact a lawyer who is experienced in franchise law to assist in drafting your agreement.
The Partnership Begins Now
Before you discover your dream business, find your perfect business partner. Kiekenapp suggests prospective business partners, "Do all the research and planning as a team so there are no surprises later. You will learn about the partnership as you work together, researching and making the decision. In several cases you may find the right business and discover you may have the wrong partner."
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A business partnership is a complex relationship that takes mutual understanding and the same vision and goals. Ultimately, as Kiekenapp concludes, "A partnership starts with laying the ground rules for the partnership, agreeing to disagree, doing the research and making the decisions together and if that goes well, the partnership will have a high probability for success."
If you're ready to own your own business and you're not quite sure where to begin your search, FranchiseBuyer can help. FranchiseBuyer's network of experienced franchise consultants will work with you throughout the entire process of finding and buying a quality business that meets your needs and goals. FranchiseBuyer's services are completely free and you will be under no obligation to purchase a business, so learn more about FranchiseBuyer today! Click here for more information.
Pamela Gold is a Copywriter for Franchise Solutions, a leading provider of marketing and lead generation solutions for the franchise industry. Offering franchisors an array of technology-based tools as well as the services of a full-service marketing agency, Franchise Solutions has helped many franchisors reach new levels of branding and growth, while helping thousands of prospective franchisees find the business that's right for them. To start your online search for a franchise, use Franchise Solutions for Women's Franchise Finder. Click here for more information.
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