Partnerships can provide a means by which partners can pool the best skills or resources to create a sound business. Mistakes can be made, however, in both general and limited partnerships that can limit the progress and potential growth of the business. Here are 10 of the most common.
1. Not having a signed partnership agreement.
2. Not having an attorney assist with drawing up the agreement.
3. Not including an exit strategy.
4. Not using your individual strengths.
5. Not forming a limited partnership.
6. Not considering the liability issues.
7. Rushing into a venture without adequate planning.
8. Ignoring state requirements and regulations.
9. Choosing the wrong partner.
10. Not adequately capitalizing the partnership.