The Do’s and Don’ts of Choosing a Business Partner
Working with others to establish and grow a business partnership can be hugely beneficial, when each individual brings different skills, abilities and perspectives. Having multiple owners working together in a successful business partnership can mean getting more things done, and not having to shoulder the demands of the business entirely on your own.
However, it is important to take careful consideration when choosing who you will take on as a business partner. It is not enough to be great friends with a person or know someone for a long time. Choosing the wrong business partner could lead to difficulties in running your business and growing over time.
All partners of a business will need to be on the same page, when it comes to the goals of the business, the direction you are taking and the roles and responsibilities of each partner in running your business.
How do you create a successful business partnership?
Whether you are adding partners to an existing business or establishing a new business, creating a successful business partnership involves the active participation of all involved. There are certain qualities that all successful partnerships possess. Before jumping into business with others, it’s important to understand the components of successful business partnerships and to seek out those essential traits in your partners.
If you are creating a new partnership, you can choose to register either as a General Partnership or Incorporate, with all partners listed as Directors. Ontario Business Central can assist with registering your General Partnership in the following Provinces:
We can also assist if you’re looking to incorporate your business in any of these jurisdictions:
If you have an existing General Partnership or Corporation, you can add new partners or directors to your business.
Add additional partners to your existing General Partnership can be done through an amendment. We can assist with amending your General Partnership in Ontario using the link below:
Ontario General Partnership Amendment
If you have an existing Ontario or Federal Corporation, we can assist with filing a Notice of Change using the link below:
Ontario or Federal Corporation Notice of Change
If your General Partnership or corporation is registered in another jurisdiction, call us directly to obtain a quote today to make these changes. 1-800-280-1913.
What are the qualities of a good business partner?
Here are some of the essential traits you will want to look for when deciding who to take on as a business partner:
Partnering with others means you are all on the same page for taking the business in the same direction. Having conflicting company goals with potential business partners means you may not necessarily be together towards a shared objective. Sitting down to outline the business plans allows each individual to understand what the objectives are, so the foundation for a strong partnership is established from the start. Using business plan software, like LivePlan can help you set up, share and update your business plan as required.
When you are partnering with others, you want all of those individuals to have the same drive and motivation as you do. Things not only have to get done, but they have to get done properly and to the highest standard possible. Any potential business partner should have the drive and motivation to want to do this.
Part of a Team
Being a member of a strong and successful team means understanding that you are all in business together, relying on one another and working towards the same goals. All partners should take an active role in decision making and should contribute their strengths and perspective to the benefit of the business. Manage your team and the work you’re doing, even if you’re working at a distance, with the help of online platforms like Asana.
When multiple voices are making decisions and giving their input, it is essential for businesses to have open, clear and honest communication between all partners. This avoids any confusion with what is being done with the business, who is responsible for each task that needs to get done. If you are running an online business or working with partners long-distance, it is even more necessary to have clear and open communication. Having conference calls or Skype video conferences are highly beneficial in getting everyone on the same page.
Able to Delegate
Running your business means you and your partners will have to be hands-on with much of the work, implementing your skill sets to get things done. But, you and your partners can’t get it all done yourself, so you will all need to have the ability to find capable individuals and trust those people enough to delegate work to them.
Coming up with creative solutions to any problems your business encounters is a great skill to have and a valuable quality to look for in all potential business partners. And, when you aren’t able to think of a solution on your own, being open to accepting business ideas and suggestions from your partners is an essential trait for a successful business partnership. Part of problem solving also involves getting to the source of the problem and figuring out how to resolve it.
When looking at potential business partners, it’s important to evaluate these essential traits in order to avoid choosing the wrong partner. Successful partnerships are built when all individuals contribute their abilities and skill sets to the overall growth and benefit of the business.
We at Ontario Business Central Inc. have been assisting people to establish their businesses since 1992. If you would like our assistance or have further questions to ask, please feel free to reach out to us directly.
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Ontario Business Central Inc. is not a law firm and cannot provide a legal opinion or advice. This information is to assist you in understanding the requirements of registration within the chosen jurisdiction. It is always recommended, when you have legal or accounting questions that you speak to a qualified professional.