Legalities to consider before finalizing a business partner
A business partner is a commercial entity with which another commercial entity has some form of alliance. This relationship may be a contractual, exclusive bond in which both entities commit not to ally with third parties.A legal form of business operation between two or more individuals who share management and profits. ... In a general partnership, the partners manage the company and assume responsibility for the partnership's debts and other obligations. A limited partnership has both general and limited partners.
The role of a business partner is to help and guide the business through projects, not to pander to their every need while panicking to get things done in an unreasonable timescale and risking delivery of sub-standard solutions.
All too often, business partners are pandering to the business, putting unreasonable demands on their teams and expecting high quality in less time than is needed; complaining when expectations are not met.
So, what does it take to be a good business partner while still supporting the business effectively?
As a business partner, it is your responsibility to work closely with the business to help them understand the approach that will be taken for their project, the amount of work needed, and the complexity of that work. They do not need to understand every detail, but they do need to appreciate the effort and skills required to complete any given task.
Qualities Of A Business Partners:-
1. Unique Skill Sets
One of the most common mistakes made when an individual seeks to form a partnership with another is they essentially look for a “clone.” This is a mistake. Keep in mind each partner should bring a set of unique skills into the partnership.
Ideally, each partner will have skills which “compliment” the skills of the other partner. Example; one partner might be good with tasks, so the other should have strong people skills. This way the partnership can effectively overcome many management and decision-making challenges.
Although partners should possess unique skill sets it should in no way form a hierarchy of responsibility. There are skill sets which all competent business people possess, and each partner should utilize them when required. Flexibility and fluidness is much an attitude as it is a mode of behavior.
The need for partners to be spontaneous, flexible and fluid is generally caused by workload demand. So having the right attitude and following it up with action when the workload demands it will allow partners to meet challenges successfully.
3. Honest Communication
Letting the left hand know what the right hand is doing, is important in a business partnership. It is not only important for taking effective action, but for keeping the relationship on solid footing. Where most partners get into trouble is when it comes to giving bad news to the other partner, because they don’t want to do it. Understandably, giving bad news to the other partner is hard, however open and honest communication in a business partnership requires it, whether it is good news or bad.
4. Common Standards
When developing a successful business partnership it is essential partners share common standards. These generally include work ethics, quality standards, and acceptable business practices to name a few.
Standards are like the oars of a boat, and when both partners are rowing in the same direction their destination can be reached more smoothly. If the partners have standards which are polar opposites they will be working against each other, which could affect not only the health of the partnership, but the health of business enterprise too.