10 Questions You Should Ask Before Entering a Business Partnership

A business partnership is similar to collaborating with a friend to run a performance. It occurs when two or more people work together to tackle a commercial enterprise by combining their skills, ideas, and resources. It's similar to marriage but for work! Partners share the company's duties, liabilities, and benefits. They're in it together, combining their strengths and possibly even offsetting one other's flaws. Partnerships, whether small or large, can bring varied viewpoints to the table and make things happen. They talk, negotiate, and collaborate to realize their shared idea, much like friends in a good partnership.

Why is Partnership in Business important?

Business alliances are the ultimate adult buddy system. They are significant because they combine many abilities, ideas, and resources into a powerhouse. You know how they say that two heads are better than one? Partnerships, on the other hand, are more like exponential brainpower. Running a business alone can feel like juggling blazing torches, but working with a partner is like having an extra set of hands to assist you. Not to mention the moral support; having a companion to share the ups and downs can be a lifesaver. Oh, and the money aspect is also essential. Sharing costs, investments, and profits helps reduce the financial volatility of the corporate sector. So, partnerships aren't only about sharing tasks; they're also about doubling success and having a sidekick to help you negotiate the chaotic business world.

Questions to Ask Before Entering a Business Partnership

Entering a business partnership is a significant choice that must be carefully considered. Here are ten key questions to consider before entering into a partnership:

1. What are Our Goals and Vision?

Before we go on this partnership adventure, let's talk about what we want this business to be. For example, where do we see ourselves in a year or five years? If we're both on the same wavelength, we'll set ourselves up for success and prevent awkward "Wait, you wanted what?" moments later.

2. What are Our Roles and Responsibilities?

So, who's in charge of what? Let's set it all out like a team playbook. It's okay if you know numbers and I know marketing, but let's make sure we both know who's doing what. That way, no one will be left scratching their heads, and we will be able to handle projects like the dynamic duo that we are.

3. How Will Decisions be Made?

So, how will we roll when making the critical decisions? Are we high-fiving every choice, voting it down, or allowing one of us to captain the ship in our area of expertise? There are no surprises here - let's lay down the rules for the choice dance.

4. How Will Financial Contributions be Handled?

Money conversation is always entertaining, right? But seriously, let's talk about who's putting up how much money to get this ship going. And who will chip in if we need additional money later on? We need to make sure we're on the green.

5. How Will Profits and Losses be Shared?

When the dough begins to arrive, how will we divide the pie? And on the other hand, if things go wrong, how will we deal with it? Getting this money right is critical to avoiding later unpleasant "who gets what" discussions.

6. What's the Exit Strategy?

Let's be honest: What if one of us wants to leave or life throws us a curveball? What are our plans for dealing with that? Isn't it better to have a plan for parting ways that runs as smoothly as a well-oiled machine?

7. What's Our Conflict Resolution Plan?

We will be like peanut butter and jelly, but even PB&J has ups and downs. How will we manage squabbles like "I can't believe you ate the last cookie"? Having a plan to keep the peace when things get tense is akin to carrying a superhero cape in our back pockets.

8. What's Each Partner's Time Commitment?

My friend, time is money! How much of it are we devoting to this project? Let's ensure we're all on the same page so no one feels like they're doing all the heavy lifting while everyone else is relaxing.

9. How Complementary are Our Skills?

How can we use our superpowers to propel this company forward? Discovering our strengths and how to collaborate on obstacles will transform us into an unstoppable force.

10. What's Our Communication Style?

Call, text, or send a carrier pigeon? How are we keeping the conversation going? Let us commit to maintain those lines of communication open so that we are never in the dark about what is going on on either side. It's like our secret sauce for a thriving partnership. Thorough communication and a well-drafted partnership agreement can lay the groundwork for a fruitful collaboration. It is usually a good idea to contact legal and financial professionals to ensure everything is correctly documented.

Entrepreneurship at Sampoerna University

Sampoerna University is a fully accredited university in Indonesia that offers the best choice for those seeking excellent international education. We are a private, non-denominational, non-profit university licensed and certified by the Republic of Indonesia's Ministry of Education, Culture, Research, and Technology. Formed according to national and international standards, Sampoerna University is qualified to contribute to society through education substantially. Sampoerna University offers a range of entrepreneurship courses as part of its undergraduate programs. These courses focus on developing entrepreneurial skills, including opportunity recognition, business planning, marketing strategies, financial management, and innovation. Students learn to assess market feasibility, create business models, and develop sustainable business strategies. We also collaborate with industry partners, start-up incubators, and entrepreneurial organizations to provide students with practical exposure and real-world experiences. Through these partnerships, students can participate in internships, industry projects, and mentorship programs, gaining valuable insights into the business world and entrepreneurial practices. The University emphasizes entrepreneurship as a critical component of its educational approach. 9 of 10 graduates get employed three months after graduation*. Immediately register to participate in the new student admissions process for the 2023-2024 year here. Our Admission Team will contact you soon to provide more detailed information. Schedule with us whenever you want to visit campus tours on-site or virtual!