A lot of home-based businesses are formed with partnerships. Sometimes it’s a spousal or domestic partnership. Other times it’s a partnership of like-minded individuals, each bringing something different to the table for the business as a whole.
A friend of mine called this past week and asked for my input on an idea he and a partner were formulating. I listened to him and told him it sounded like a good idea, but asked him if they had worked on a plan. He acknowledged that they had some planning to do.
Indeed he did! And a written plan is pretty much mandatory for partnerships like this. For one thing, getting your ideas in writing will pin things down and avoid misunderstandings later on. Aside from the normal business planning components, certain other elements should go into a partnership business plan. These would include documenting such things as who will be responsible for what work and how the initial owner investment will be divided as well as agreeing on ownership percentages.
AllBusiness has a great article entitled “Top 10 Mistakes Businesspeople Make when Forming Partnerships” (link here). If you plan and document carefully when forming a home business based on a partnership, you can avoid bad partnership arrangements and confusion later on.