I recently received a question from a small business owner who was considering bringing five partners into her business. She wanted to know what she needed to do to make this happen. She gave me limited information regarding her specific objective, but my first reaction was — five partners????
First off, if you are considering adding partners to your business you need to get an attorney involved. I am not one, but my attorney has been a trusted adviser for quite some time. Don’t do something like this on the cheap. Better to spend the money up front than to pay it down the road somewhere. I suggested she may want to investigate creating a joint venture or outsourcing as possible options. That may work better for most small business.
I’m not a partnership fan. I used to have a partner. Key words “used to.” I would not do it again. I would develop some type of joint venture though and I do plenty of outsourcing.
I wrote about my partnership experience for My Business magazine a few years ago. What I discovered really hasn’t changed over time. Head on over to My Business and read the article here.