Choosing a business partner is not the same as choosing a spouse, but it has many of the same risks. Making a hasty decision without careful vetting and consideration can lead to regrets and can place one’s future in jeopardy. In Florida and elsewhere, a business partnership is a legal arrangement, which means disputes between partners can quickly lead to costly business litigation.
Some of the most important factors to consider when looking for a business partner include the person’s financial stability and history, his or her experience and related skills, and whether the candidate’s goals and strengths complement the other partner’s. It is also critical that both partners agree on how they will share the responsibilities, both day-to-day and in the larger scheme of things. One partner may contribute more financially while the other is more involved in the physical operations of the partnership.
Since money is often involved, it is wise to have a partnership contract that spells out many elements of the relationship, including the percentage of profits each partner will earn and when they will distribute those profits. However, even a solid business contract does not always prevent every dispute between partners. In fact, a complete contract should also include a plan for resolving disputes, whether personal or legal.
When a partnership faces a conflict, the business may be in jeopardy. Alternative methods of dispute resolution often help partners reach agreements that may minimize the potential damages such disputes can cause. However, it is always wise to have legal advocacy who is also prepared to fight for one’s interests in a Florida court if business litigation becomes necessary.