Successfully negotiating a partnership agreementJanuary 20, 2016 1:16 pm Leave your thoughts
Going into business with a fellow entrepreneur can have its benefits: division of labor, more negotiating muscle and the ability to split costs. The key to making sure you are getting the most out of the arrangement is to negotiate a partnership agreement that is mutually beneficial for your future partner and yourself. This will set the tone for all your ongoing dealings and give you a template as to how to how to interact.
Here are a few tips for negotiating a successful partnership agreement:
"Going into the formation of any business requires talking openly about your goals and expectations."
Put the business first
Going into the formation of any business requires talking openly about your goals and expectations. It pays to come into any negotiation with a clear vision of what you want out of the business and what you feel you bring to the table. This means discussing how revenue will be shared and what your company will deliver. This often requires putting egos aside to make sure that, first and foremost, you are establishing a strong and successful business.
Establish roles and responsibilities
Not every partnership needs to be an even 50/50 split of all responsibilities. Take into account your personal strengths and the strengths of your partner and divide up deliverables and roles accordingly. Be as specific as possible about what each partner is responsible for to avoid any grey area. In the event of a breach of contract, having these roles explicitly spelled out will guide resolution and potentially any litigation required.
Get experienced legal counsel
The best thing you can do to help establish a successful partnership agreement is to have solid legal counsel to help guide you through the ins and outs of negotiations. Counsel like that offered by The Law Offices of Donald W. Hudspeth, P.C. is designed to help shape business partnerships and honor the best interests of all involved.
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