HOW TO CHOOSE THE RIGHT PARTNER TO SET UP A COMPANY?

It’s very tempting to have the help of one or more partners in setting up a company. Just the feeling of being less alone is worth it. The advantages of having a partner are numerous. However, it is not a decision to be made in a hurry. It is important to be clear about why you want to take on a partner, reduce the risks associated with the partnership, and take the necessary precautions. This article gives you some tips on how to do this.

A PARTNER? WHY?

To know how to choose a partner, you first need to know what a partner is really for. A project leader may need an associate for several reasons. Most of the time, it’s to obtain additional skills. If the entrepreneur starts on his own, he has to take care of all the tasks whatever the field (administrative, technical, commercial, …). It is therefore preferable to surround oneself with people who have specific skills in particular areas of the project. Also, entrepreneurs resort to the help of associates to be able to mobilize more financial means. Indeed, a partner usually brings his own contribution to the project.

HOW TO CHOOSE A PARTNER WHILE MINIMIZING THE RISK OF ERRORS?

It is strongly advised to take as partners people with whom you are used to working. The synergy of skills is essential. However, the needs of the project must be carefully considered, as sometimes certain types of projects require that associates have the same skills. Then take the time to check whether there are common objectives. Incompatibility of objectives will sooner or later hinder the progress of the project because the partners will want to move in different directions. Only join when you are sure that there is a good understanding between you. This advice may seem trivial, yet many entrepreneurs make this mistake because of their impatience. Indeed, when the ambition to create a company bubbles up, the desire is born to do everything very quickly and to make a hasty commitment with a partner.

TAKE PRECAUTIONS

“I know just the person I want to associate with!”. This phrase is often used as an argument when you want to say that there is no need to take precautions before associating. However, many entrepreneurs have regretted this recklessness. And don’t forget that this is your future livelihood. And a serious partner won’t mind. Define the level of investment carefully. Who will be in the majority? Will there be co-management? In any case, it is always useful to draw up a shareholders’ agreement or a partnership agreement. It is also possible to draft a non-competition clause and even file a patent if you are the inventor of a process that will be used for production. Also think about how to settle disputes.

“ONE OF MY EMPLOYEES OWES ME MONEY. CAN I DEDUCT IT FROM HIS SALARY?”
I DON’T GET ALONG WITH MY ASSOCIATES ANYMORE. HOW DO I HANDLE THE CRISIS?