Whether you’re looking at bringing in an investor or you simply want someone to collaborate with you on a joint venture, there are certain things that must be done for the company’s safety. That’s not to mention that it will ensure that you protect yourself legally as well. Surprises aren’t always a good thing, and they’re definitely not if they can jeopardize your business.
Are You Willing to Invest the Needed Time into the Partnership?
It’s no secret that many people enter business partnerships for all the right reasons. However, more times than not, if it doesn’t produce results in the desired amount of time, then they’ll just up and quit. This isn’t good business, and it’s something you want to avoid if you can.
You’ll also want to be able to count on the potential business partner to put in work just as you do. A slacker has no room in the entrepreneurial world as success doesn’t discriminate; rather, it finds those who work for it and not those who want it handed to them just because. This will give insight right out the gate when it comes to their level of dedication with the business.
Source: https://readwrite.com/2014/02/17/startup-invest-friend-yec/
Are There any Past Legal Complications?
Thoroughly research all past litigations of the company. The Federal Trade Commission (FTC) requires all businesses to surrender copies of their Uniform Franchise Offering Circular (UFOC). This document details all aspects of the franchise’s history, including any lawsuits that have been filed against them.
This will provide you with insight when it comes to whether they could end up being a liability for your company or if they know how to stay in legal compliance throughout the course of business. Don’t take a risk just because you don’t want to do your research and ask questions; instead, ensure longevity for your business.
Source: https://www.franchisegator.com/articles/5-characteristics-of-a-worthwhile-retail-franchise-12195/
What Does Success Mean to You?
Knowing whether a person has standards that can be reached realistically tells you a lot about him or her. If the individual has unrealistic expectations, then odds are that he or she will be disappointed at some point during business. Save the time and headache by making sure you enter a partnership with someone who can embrace what can be done rather than ask for what’s impossible. Don’t forget to ask the person what success would look like to him or her in terms of the project that you’re considering him or her for.
Source: https://theartistsjd.com/7-questions-business-partner/
Now that you know the basic questions to ask in order to embrace a sound decision, think about other questions you can ask to help you sort out the best ones to do business with. If you take the time now instead of waiting until it’s required, then you can cover things that you might not be able to remember on the whim. Preparedness is the key to success.
For additional help with forming or growing your business, let ARC Business Solutions help!
