What you have might be a great business idea, but it can also be the end of an era for you and whoever you start it with.
No matter if it's someone that you have known for five minutes or 20 years, when it comes to doing business together there are few things to consider.
You might start of as the best of friends / business partners, but most businesses don't last more than 5-6 years. Why?, because of disagreements. Don't forget that sharing is caring, but PUT IT IN WRITING, Yes it's necessary!
Why argue about it, it's the best thing to do for all parties involved. This way there will be no arguments in the future if the structure and rules of the company is set from the beginning. If you can't agree on this then this partnership thing is not for you.
How your company can still be here 10 years from now.
1. PARTNERSHIP AGREEMENT
As mentioned above, A MUST HAVE. Do not start a company together without one. What if one of you decides to move on, what happens then with that share of the company?. There are so many things that needs to be put down on paper, because we all know that life sometimes don't happen the way we want.
With the ability to communicate a lot of things can be solved before they become big issues. Saving you and your partner(s) a major headache. Express your selves but be open to other solutions than just the one you have in mind. Second opinions can sometimes be of help to make sure you don't overlook something, that might have a huge impact of the end results further down the road. Face to face meetings at least twice a month (video conference included) Face expressions says more then a thousand words, and a lot of mistakes can be avoided this way.
You are all in this together, you all have something to bring to the table. Stay thinking like this and there will be success.
Let's be frank, you are all in it for the money, Most companies don't make money from the start. Some companies take as long as 3 years before they see a profit they can depend on. What I am saying is. The company have to have money to pay it's bills before you take your cut. If possible save as much as you can from the money you make. Pay of any loan you might have as fast as you can and make sure to put money aside for future projects. That way you don't have to depend on financial institutions when it's time to take your company to the next level.
5. BUSINESS RESPONIBILITY
Business is business and family is family. Keep this in mind, the same thing goes for friends. Friends and family don't pay your bills. A partnership is as much a commitment as a marriage. It's going to be long hours and hard work before you can sit back and see your machinery work on it's own.
Focus on your vision, but not to much. Planning is good but not if it's coming in the way of actually moving forward. Whatever it is that you do or offer, make your sales. No sales = no progress.
7. WORK ETHICS
You will make no big money within your comfort zone. Make that call or go see that potential client of yours. They might not know it yet but you are their new supplier of what ever product/service your offer. To become their number one choice. Find out all there is to know about your competition within that field, why that company is the supplier in the first place and have there been any complaints that can work in your favor. Even if your offer might end up being the most expensive option, your product and exceptional customer service will land you their business.
Keep in mind.
- Owning a company comes with a huge responsibility.
- Even the most boring tasks has to be done. (Don't delegate or skip tasks that are not fun, knowing the business inside and out will always benefit you)
- Patience is a virtue. (Things don't happens over night)
- Bad ideas (A bad idea is a bad idea no matter how you look at it, when something doesn't work. DROP IT, even if it in the end means the whole company)
- Believe in yourself. (If you don't, who will?)
- Not everybody is going to like you, your product or service, that's okay. there are a lot of people who will.