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Don’t pick the wrong business partner

| Aug 21, 2020 | Business Law |

One of the worst things that you can do for the future of your business is to pick the wrong business partner. Not only does this make it harder for the business to flourish, but it increases the odds of a dispute between the two of you. These disputes can be challenging, time-consuming and detrimental to production.

But how do you know if you’re considering the wrong person? Start by thinking about what you value. If the two of you differ here, it’s going to cause conflict. For instance, you may value your employees and your company culture. They may value money. If they refuse to pay your employees as much as you know they’re worth, instead fighting to pay minimum wage, that causes problems.

Another red flag is if they refuse to use any paperwork, such as an official partnership agreement. They may even act a bit insulted that you wanted them to sign. Remember, the agreement protects you and answers a lot of questions you may run into in the future. If they refuse to use one, ask yourself why.

Finally, just think about your skills. Yes, to some level, you need to be similar people. However, it’s often best if you have opposite skills. This makes the company stronger and reduces the chances that you’ll run into conflict about roles and responsibilities.

No matter how careful you are, there is a chance that you’ll end up with a bad business partner who harms the company and starts a dispute. If that happens, just be sure you know what legal steps you can take.