Any tips on business partnership? I'l be handling the operations side and he's on the finances.?

Answer 1

Business partnerships also contain a significant amount of trust relationship between/amongst the partners. Both of you must have taken good care to ensure the success of the partnership, still for a fair play and re-iteration of faith, consider inserting the following clauses in the partnership agreement:

1. Audit of accounts. Most of the countries don't require compulsory audit of accounts annually. You should go for this even voluntarily for an independent audit once in a year.

2. Recording of major decisions: Maintaining minutes may not be compulsory for partnerships, yet you should go for this for the long term good health of your relations.

3. Arbitration Clause: Do avail this revolutionary alternate dispute settlement mechanism, if and any arising between two of you and staying unresolved for a long time.

4. Monitoring of financial matters: Set a limit for individual partners spending, whether for routine or exceptional matters. Any thing over and above that limit should have consent of both of you.

Rest, stay honest and loyal and reap the benefits of collective wisdom for the benefit of both of you.

Answer 2

Make sure you have a contract/agreement signed by both of you and put EVERYTHING in writing. It may seem strange to do so if you two are friends or relatives, but it is of the utmost importance. Also, make sure it is clear who is responsible for what and put that in writing as well.

Last and foremost, even though he is in charge of the finances, schedule weekly or monthly meetings so you are kept aprised of all financial matters. Even though you are in charege of operations and the other in charge of finances, you are still partners and to be successful, you need to be well informed and participate in ALL financial decisions as well as have the authority to make financial decisions that affect the partnership. Make sure you are a "signer" on any and all business accounts and don't turn a blind eye to a transaction you don't understand. The same goes for him. He should be kept apprised of all decisions/intentions on the operations side of the business.

The both of you should listen and respect the others' ability to do your own parts in the partnership, yet stay on top of both sides in order to keep your partnership a successful one without "partnership doubts" or "red tape".

A Company Policy/Manual is also an excellent idea. Try to establish one before you get the business up an running. This is a great way to have things in writing as suggested earlier and it can be amended at anytime with approval from both.

Good luck on your endeavors.