There are a number of questions one should ask before partnering with someone to start or grow a business. I read an interesting article on Inc.com about things to consider before partnering. One of those is financing. Here’s an excerpt from that article, 8 Tips for Business Partnerships, that I thought was interesting and spot on.
——————————‘Do You Have Sufficient Funding?
As in marriage, the financial aspects of a partnership can be stressful. The partners should develop a budget for both the business and for their personal needs, says Gerber. The budget should identify how much is needed to start the business and where that investment is coming from. It also needs to identify what is needed until the business starts generating profit to the owners. “Stress on personal finances is an issue for all entrepreneurs during startup,” says Gerber. “Going in, the partners should be confident that they are both able to handle the loss of income for a similar duration. Otherwise, their financial needs won’t be aligned and their interests may differ in how, or how long, to sustain or conduct the business.”‘——————————–