You feel good about your company’s current trajectory, and you feel ready to bring on more talent. Before seeking potential partner candidates, you may want to get proactive about protecting yourself and your business.
Business News Daily explains specific details to include in a partnership agreement. Ensure every detail of the contract protects all parties involved.
To avoid confusion and misinterpretation, specify which activities your company engages in. Further, include details about activities your business does not engage in.
Use the contract to let your future partner know how much of the company everyone owns. Including a detailed description makes it easy to see how much stake individual partners have in your enterprise.
Rather than wait for disagreements, tackle them proactively by describing your dispute resolution methods in the agreement. No matter how well you get along with your partner, you cannot account for every possibility and how it may affect your professional relationship.
Let your partner know how you make decisions in your company and the weight all partners carry in making decisions. This part of the agreement may include information regarding the person with monetary control of the company and parties with the ability to approve new partners. This is also the section of the contract where you may detail how you divide profits and losses among partners.
In case the partnership does not work out or if you have no choice but to shut your business down, describe how you want to dissolve the business. You may also account for what happens if a partner steps down.
You cannot afford to leave anything to chance with a business on the line. Let your partnership agreement provide you with peace of mind.