Forums: Discussions for entrepreneurs and small business.

I`ve worked on a contract basis with my sister, who owned an ad agency/PR firm for a decade, with a great deal of success over the past 15+ years.  The operative word in the previous sentence is "contract."  Too many business people think the trust, and other positive aspects, of a family or friend relationship will automatically translate to a shared business or project and they let the use of common business procedures lapse.  One of my long-time Jeff-isms is "ALWAYS work with a contract or project agreement - especially when working with friends and family."

In all the years of working with my sister we only hit one major "speed bump" along the way - the result of her actual business partner lying to her about the progress of a project.  Funny, that business partner is long gone.

Of course, I do have family members and friends I would never even consider doing any type of business with...

- J.



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Jeff Fisher | Jeff Fisher LogoMotives | Tweet! Tweet!

Netrix,

Family business is a great business model - when it works.  There are many factors to consider, both business and relationship, before embarking on such an adventure. Hope the following tips help you make an informed decision.

 

The Top Ten Things to Look for in a Business Partner

 

Entrepreneurial spirit

Solid relationships

Complementary skills

Compatible values

Similar vision

Respect

Good reputation

Solid financial history

Proven track record

Good physical and mental health

 

Qualities of a Good Business Partner

 

Commitment

Loyalty

Integrity

Flexibility

Initiative

Trustworthy

Reasonable

Resilience

Confidence

Optimism

 

Top Ten Agreements for Business Partnership

Structure

Contribution

Authority

Responsibility

Accountability

Liability

Compensation

Risk management

Activities (time off, outside interests)

Termination

 

How to form a successful partnership

 

Chose a partner whose strengths complement yours.

Establish a shared vision for the business.

Get the expectations of each other clear up front.

Formalize a partnership agreement with counsel.

Divide roles and responsibilities according to strengths.

Establish accountabilities for each role

Delegate tasks neither partner wants, as soon as possible.

Have planned meetings

Review results and make expedient operational changes.

Develop a system for effective conflict resolution.

 

JRC

 

Great breakdown. Thanks.

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Vincent Wilcox (a.k.a. KRAKR)
Drummer
My band: Letters Make Words