6 Things to Consider Before Going into Business with a Partner

Today, we are looking at partnerships in your Silhouette Cameo or Cricut Explore small business. While history has shown us many great business partnerships that have led to amazing things (hello, Ben and Jerry’s Ice Cream!) – there are also as many stories of people opening a business together and it ruining their relationship forever. Before you decide to take on a partner in your business or start something entirely new with a friend – consider the points below.

6 Things to Consider Before Going into Business with a Partner

1. Ask yourself: Do I really need a partner? If you are a type A personality and always want things your way – taking one a partner may not work well for you. Similarly, if you are more a loner who enjoys crafting alone – a partnership may not be suited for you.
2. Talk about goals before agreeing to partner. A partnership is doomed to fail if you and your partner aren’t working towards a similar goal. For example, if you eventually want your products sold in big box stores and your partner only wants to make enough money to stay home with her kids – this situation likely won’t work.
3. Clearly define each person’s role. If you are taking on a partner, be sure to write out the specific roles of each partner. For example, if one partner excels in product design and creation and the other in marketing – write out and agree to these responsibilities.
4. Lay out a plan for disagreements. Before your partnership even gets started, you’ll want to have a plan to deal with disagreements.
5. Consider how you will split expenses and profits. If you are opening a new business with a partner, it is easier to put in an equal amount of money from each partner and use it for purchases and the like. If you are an existing business adding a partner, you’ll need to determine how much of the company the new partner will own and how you end up splitting expenses and profits.
6. Don’t skip the legal paperwork. If you truly want to go into business with another person, don’t skip getting everything written out by a lawyer and signed by both parties. In the event that something goes astray, you’ll have legal rights.

Not looking to take on a partner? Read about hiring virtual help or your first employee.

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