Partners

[RoyalBarbaras]

I have decided to start a company. I have a wonderful idea and have tested it on friends and done some preliminary market research. It looks very promising and although I have not yet written a full business plan, I feel that I can build a company to have revenues of over $30MM within eight years with pretty attractive profits. I have saved $200K to start the company.

I think this is just enough to get you off the ground, and I might even be able to squeeze through to profitability with this injection of funds.

In talking to a number of friends, some of whom have started companies themselves, I feel that I need a partner to complement my skills, to be there when things are tough and to share the load. So:

a) What is in general the profile of the right partner, and how can I find them and get comfortable with them?

b) Even if I think that I have eventually found the ideal person, what legal, ownership and financial structures and arrangements can I choose for our start-up? What specific terms can insist on having in the partnership agreement?

[Crysco]

If your from the U.S. I would recommend checking out your local Small Business Association (SBA)... They have a lot to offer, try to get into a start-up workshop or meet with a counselor. There are a few other organizations available to help out start-ups too and it costs little or nothing most of the time.

Partnerships are really what you want them to be, it is all how you set them up. Make sure you know what you want and what they want, and have a plan on how to change the rules in the future when things start to change or if they dont work out.