Creating the Perfect Business Partnership

Although the original idea for your business might be all yours that doesn’t guarantee you won’t need a partner to get that business running and keep it afloat. A solid business partnership can actually increase the likelihood that your company will find success. That’s because you’re sharing the responsibilities and expanding your networking potential.

What makes a productive business partnership? Consider the following factors:

 

Set Your Goals

You should already have a business plan with a strong vision and measurable goals. When you go looking for a business partner you want someone who can share in your vision. You need to be honest about your own limitations. Are there some skill sets you need to develop for yourself? What can you learn from a business partner? Suppose you were opening a restaurant and had terrific chef but they didn’t know anything about desserts. Wouldn’t it make sense to hire a pastry chef? You want to find a business partner that can build upon your talents. They also have to be enthusiastic about your vision. You’re not looking for a “gun for hire” but a genuine partner.

Look Beyond Your Circle

As you begin your search for a great business partner, you’ll want to go beyond your immediate social circle. Yes, you might have a friend or family member who could fit the bill but don’t stop your search there. Go to where you might find the most qualified partner. There could be trade shows, industry events or conferences, where you will find like-minded individuals who would prove to be an asset to your company. The last thing you want to do is find a business partner who doesn’t have any experience in your industry.

Manage Expectations

After you’ve narrowed down your candidate list you’ll want to carefully detail the responsibilities for your new partner. Depending on the circumstances, a business partner could become an equal owner in the company because of the investments, skills or ideas that they are bringing to the table.

However, that doesn’t mean they can automatically dictate how things should be run. That should come from you as the controlling owner. Of course, you’re hiring a partner because you want the support so be open to any ideas they might have about management, marketing and production. If you’re both clear from the outset about what you expect from each other than there shouldn’t be any surprises down the road.

Make It Legal

Once agreed upon, all of those responsibilities should be put into the form of a legal contract. This contract should spell out things like compensation and termination of the partnership. Essentially you should cover all the bases. A handshake is a noble way to do business but won’t matter in a court of law if something goes wrong. As with every other aspect of your business, get it in writing and get it signed.

The 3 challenges for a start-up

For many entrepreneurs, starting and growing a business is an exciting adventure – until you come across almost insurmountable obstacles that can break up your company. After speaking with a few entrepreneurs, investors and executives, here are some of the challenges that business owners face when growing their companies.

Not having partners to help share the load

There have been very few successful companies that have been started by just one founder. And those that have succeeded always attracted a good team who were there from the beginning. Why can’t a single founder start a company? Many entrepreneurs say it’s because starting a company on your own is just too much for one person. With daily pressures and multiple areas that you are responsible for, there are not enough hours in the day to deal with them. Even if you could do all the work yourself, you would still need a team behind you to vet ideas, strategies and opportunities. By working with partners you will be able to share the workload and be able to bring the final product to market quicker.

But most importantly, having multiple founders allow the team to help support each other through the most challenging times. When going it alone, trying to manage the daily stress will be difficult. Having a team around you to lighten things or spread the load is immeasurably beneficial.

Losing focus and spreading yourself too thin

This can be a big problem for companies who want to do everything for everyone. If your start-up is growing quickly, it is common for many founders to start adding new markets, and expand too quickly through acquisitions. Don’t try to solve problems that are not part of your niche as this will pull you away from what brought your company success in the first place – your core market. What you should do is tightly define who your target is, focus on what you can offer them and create an action plan that solves their problems.

Not enough cash

Cash is king. You’ve heard this before from various people, however, in a business environment it speaks volumes. How much cash do you have until you hit your next milestone? If your company is an idea, then how much money does it require to create a product/service? If you already have a product, then how much cash does it take to launch? So when you set your financial goals, make sure that you’ve accounted for how much cash it would take to get to the next step. Without sufficient cash flow, any downturn can end your business before it has a chance to fly.

With proper planning and foresight, you’ll be able to overcome any of these challenges and be well on your way to success!

Common Mistakes of a Start Up

Most of us dream of becoming an overnight success. We have thought of the greatest business idea that will lead us to riches. It may happen. Then again, it may require good, old-fashioned hard work and dedication to make that first million. No doubt, though, that self employed entrepreneurs have that desire and drive to give it a try. By avoiding some common startup mistakes, the chances of success increase greatly.
 

It is vital to set yourself apart from others. You have to convince customers that your business is the right choice. What is your specialty that will entice business to come your way? Being the same as others in the trade won't cut it. Also, copying someone else's idea because they were successful at it won't bring you long term success.

You have to sell your service or product to the public. Don't expect a colourful flyer or flashy website to do the work. Similarly, your credentials are important for your credibility. But the bottom line is demonstrating what you can do with those credentials.
 

Did you start out with a business plan? Use this document to chart your business and don't be afraid to alter the plan as necessary. Many new businesses realize in the first few months that change is essential. Although you probably want to see your business in print, don't sink money into advertising until you've worked out the initial kinks and have settled on the long term version of your business.
 

Be sure to advertise your business where it counts. Get out and sell your service or product to the appropriate crowd. Also, don't let hecklers or criticism deter you. Setbacks happen. Don't let them overwhelm you. Marketing must be ongoing. Don't stop after a few tries. You want the public to identify you with your business. Continue the marketing and be persistent and convincing!  Motivate yourself and you'll succeed in motivating others. 

Incorporate in Canada with CorporationCentre.ca
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Why should I incorporate my business in Canada? - Part I

You're a Sole Proprietor

You're a small business owner, or thinking of starting a small business. As a sole proprietor, you make all the decisions and earn all the profits, but you also bear all the risks and obligations. Start-up is easy and inexpensive, and dissolving the business would be too, should the need arise. But the big disadvantage of continuing this way is unlimited liability. As the owner, you are liable to the full extent of your personal assets for any liabilities, debts and losses that your business incurs.

Register your sole proprietorship in Canada

You're a Partnership

Maybe you have a partner in your small business; so there are at least two people to share in all the profits and/or losses. Just like a sole proprietorship, a partnership is easy to form and dissolve and not so formal in general to operate. Again, though the great drawback to a partnership is unlimited personal liability for all the partners for any debt or loss incurred by any other partner in the business; regardless of each individual's capital contribution.

Register your partnership in Canada

You're Thinking About Incorporating in Canada?

As a corporation, however, your company would be a separate legal entity from its owners, or shareholders. The shareholders control the corporation because they have voting rights. The extent of those rights depends on how many shares each one holds. The shareholders elect and remove directors and approve major corporate decisions. But the company is run by directors and officers, who may or may not also be shareholders. To incorporate, a company must file the Articles of Incorporation (also called a Charter or Certificate of Incorporation) with the government.

Incorporate your business in Canada

Stay tuned for future posts about selecting a corporation name, trademarking, and more info on incorporating your company.


Incorporate in Canada with CorporationCentre.ca
Click. You're incorporated ®