Searching for the perfect business partner isn’t easy.
But if you are lucky enough to find a good match, the rewards can be great.
Sometimes, sharing the burden of doing business can make a lot of sense, but is it worth giving up your autonomy for a share in your equity and control?
Forsaking equity might not seem like a big deal when first starting out. But when your business inevitably succeeds, you’ll discover just how much that decision really costs. The upside is that many hands make light work.
Start with ‘why’
At Williams & Kunkel, CPAs, LLP, we recommend you start by asking ‘why’?
Could it be that you’re simply seeking some support on the ground, or does a valid business need exist?
One of the best reasons to bring in a business partner is to complement your skill set, especially if you feel there are gaps in it. Think about the bigger picture; if you are visionary, then a partner may bring the attention to detail to help get things done.
Where to find a business partner
Conventional wisdom warns us against teaming up with family or friends in case things turn sour, but don’t dismiss it right off the bat..
If you come up empty, however, you’ll need to look elsewhere. If you can’t find any suitable candidates in your own business network, then you should consider casting an even wider net. Leaning on your CPAs is also a sensible place to look – being at the hub of their own client network, they may be able to put forward and introduce potential candidates for an initial discussion. Your CPAs can also act as go-betweens and advisers until you are completely comfortable about making a more formal arrangement.
Entering into a business partnership should never be taken lightly
Whether you’re in a start up, or looking to grow an established enterprise, don’t let your eagerness to bring in a partner blind you to any red flags. Instead, try to explore all the possible scenarios first, using your CPAs as a sounding board.
Drafting documents and seeking professional advice is also a great way to force yourself to deal with the sticky matters upfront and potentially avoiding conflicts in the future.
Williams & Kunkel, CPAs LLP work with new and developing businesses throughout the Flower Mound area to help simplify the hows and whys of setting up a business.
Have confidence that your choice will not only suit your business needs now, but that it will also minimize future tax liability during your profitable years. We take time to learn more about your business plans in order to recommend the right entity (business?) type and explain the advantages and disadvantages of each.
Contact us today for a free initial consultation by emailing or calling our Flower Mound office at 972-446-1040 to talk about your business.
Need more business advisory help? Read more at Williams & Kunkel, CPAs, LLP New Business Advisor Services