For many Illinois entrepreneurs, partnerships offer the power of two or more great minds working together towards a shared vision. Having someone to bounce ideas off, offer theories and provide an anchor when you hit a roadblock can benefit the venture and the bottom line. However, it is critical that you take steps that formally create the partnership and protect each of you if something goes wrong. At Pentiuk, Couvreur & Kobiljak, P.C., we often assist clients plan and draft forms for their business entity.
Forbes reports that successful partnerships share many of the same characteristics.
A formal partnership agreement, customized to meet your specific needs, is one of the first things you should do. Make sure you cover key elements, including scheduling expectations and financial implications. You may also wish to address issues such as, how does a decision get made if you and your partner(s) disagree? Who decides where to allocate resources? Who owns what? Laying out a comprehensive plan can save headaches down the road.
A communication structure is in place. Whether it is for weekly marketing meetings and quarterly reviews or daily check-ins, you and your partners should communicate openly. Discuss challenges and opportunities and resolve issues before they have a chance to become obstacles to the success of your partnership and the business.
It is clear and straightforward. Partnerships do not need complex rules for every potential situation. At its core, a partnership is like-minded people working together towards a common goal. The red tape, accountants, employees and overhead can come later. For now, focus on achieving the goal, with creativity and enthusiasm guiding your progress.
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