Questions

How do you smartly and correctly offer someone into partnership in your small business?

I have an established small yet growing business and just recently bought out my business partner. The company was founded in my youth, not in a smart or correct way, I did not know what I was doing. I was burned. I connected with another individual who is very interested and experienced with goals of being a partner in my business, and I have no idea how to make an attractive offer that makes sense but also protects me. Is it over the course of a few years? Any help much appreciated!

3answers

Hello!
You have to ask yourself: Why I need a business partner?
What value this partner can bring to my business? How much this value costs? Does he/she shares the same values and has same vision like I do?
According to answers you can prepare a nice offer and a small presentation.
But do not forget to connect with your lawyer and prepare all the documents in a proper way, defending your part in the Company. (always do this)
Remember, that conflicts between partners are the fastest way to the destruction of the company.
Have questions? Call me. I am MBA, PhD, professional in business transformation and business development.


Answered 4 years ago

It depends on what you need from them.
I usually like to define investments in such a way that there isn't someone trying to dictate how the business is run.
That's what happens when you get a partner. They own part of the business and you have to listen to them.
It takes real maturity and organization to make a true partnership work.
If you just need an employee and maybe some of their money as an investment, then you should structure things differently.
I suggest my book, Invest Local, which is full of non-equity ways to structure investments in local small businesses.
Cheers
www.DavidCBarnett.com


Answered 4 years ago

Unlock Startups Unlimited

Access 20,000+ Startup Experts, 650+ masterclass videos, 1,000+ in-depth guides, and all the software tools you need to launch and grow quickly.

Already a member? Sign in

Copyright © 2022 Startups.com LLC. All rights reserved.