When starting a new company, it’s always an exciting and thrilling prospect. Will it take off? Will it be the next big company in the market? For many, these are dreams that perhaps never actually transpire due to not getting past the setting up of the business, let alone existing for the first few months.
However, starting a new company with a business partner offers more opportunities for success. With two of you in the driver’s seat and two people working on the business, there’s more of a likelihood that you’ll at least launch the business.
It’s important that you’re careful when it comes to starting a company with someone though, especially as things can quickly turn sour if you’re not careful.
Pick a partnership structure
Firstly, pick a partnership structure that works for you and the business partner you’re involved with. Are you both putting in equal hours every day or will one have more time to hand than others? Which areas of the business are you going to take leadership in and which areas will your business partner take leadership in?
Chances are, you’ll each have your own individual strengths, which is important when it comes to delegating the tasks and splitting up the work needed in order to maximize your success.
Find a partnership structure that works for both of you, as this will vary from one business partnership to another. Finding each other’s strengths and weaknesses is key!
Brainstorm and market research business ideas
When it comes to the business idea or concept, it’s important to brainstorm between the two of you so that you can come to a joint decision on which concept or idea is best.
This should also include extensive marketing research to understand whether or not there’s a market for your business idea. Regardless of whether you’re offering products or services, it’s important that the marketing is available and exists so that you can make money.
Apply for an EIN number
For anyone starting a new company, it’s important that you’ve registered it and got all of the legalities out of the way to establish the business properly. This includes having to apply for an EIN number.
It’s crucial to make sure you know the ins and outs when it comes to starting a new business, especially when it comes to things like having an EIN number for the company.
Work on branding and pitching materials
Even though the company is still in the early days of its infancy, it’s still useful to try and establish a certain amount of branding for the business. Pitching materials should also be created when it comes to finding investors or working with new clients/customers.
The more you can create ahead of time, the better!
Set boundaries and keep all business finances separate
Finally, make sure to set boundaries between you and your business partner. As much as you might be close to them personally, keeping all business finances separate is essential to keep from any bad blood being formed should things go wrong.
Starting a new business with a business partner requires a unique approach, so use these tips to get started.