Shaking hands with your partner while starting a business, though seems like beautiful served in front of you which sparkingly meets most of your requirements, but it’s not when served by a stranger. So, you need not be impressed by the arousing smell of the food served, but you need to check the ingredient from which it is prepared. You would have to check that it doesn’t involve peanuts, which you are allergic to. The message conveyed through this foodie example is that you must be thorough with your investigation about him/her as well as the conditions on which you both are going to agree upon. #ThinkWithNiche
Here are some key points that you need to keep in mind before and while signing a deal and making somebody partner in your business:
1. What’s Hidden Behind the Back
A background check of the person you are going to make your partner is very necessary. Check out his/her history and relations. Especially, know about his value and reputation in the market. Go deep and check if he/she is hiding something behind their cheerful smile. Contact the common points, gather as much knowledge as possible about them. Make sure to count both the asset and liability your partner comes with. Also, find his or her work ethics and check how much of them actually match the one you and your company abide by.
2. Where are the Marks Being Made
Along with your lawyer, go through each and every line of the documents carefully. Don’t make this your lawyer’s job. Check for yourself and try to understand every clause and condition from the lawyer. Discuss, if anything doesn’t feel right, or could be made better. Make sure of balancing the contribution they are going to make in the company with the authorities you are giving them.
3. What Do They Get to Hold
While going through the documents, pay exclusive attention to the duties and responsibilities section. Make sure to know what tasks they are being assigned so that they can be held accountable for any issues regarding those particular departments. Try to have his or her responsibilities at your fingertips. Again, do not make this your lawyer’s job. Keep the knowledge of the territory in which they hold the ground.
4. How Many Toffees are Being Shared
Make sure to pay attention while the part where the distribution of profits, losses, compensation, and revenue is being discussed. None of these mentions should sound vague in any nature while being mentioned in the document. Consult your lawyer and then make every move regarding this delicate issue. A little mistake here can cost you a huge loss. Get rid of any loopholes or loose ends.
5. What Gets You Out of the Team
Even if both of you are starting off very well and the partner is very supportive in nature, still set the rules for dissolution. Be strict while making these rules. And mention each activity and step that will lead to their exit from the company.