Today, many companies have decided to pull their unique talents together to form business partnerships. This entrepreneur move is beneficial to sales, knowledge, and growth of a business. There are four particular precautions that a business owner should take when working with business partners. Here are four precautions to consider.
Have a Lawyer Involved
When making a huge business decision such as partnering up with another company, you will want to have everything documented. Be sure to write down the goals of the business, as well as a strategy exit clause. By the same token, you should also clarify who is responsible for certain aspects of the partner agreement. For instance, whose accountant will be handling the paperwork for the taxes? After the business goals are processed, drawn up and agreed upon, show it to your lawyer before signing.
Have an Exit Strategy
Adding an exit strategy to your business partnership contract can protect your company from legal matters that may arise. It should include how the business assets should be divided along with any other vital legitimate points that join the companies together. Another essential aspect to consider in an exit strategy is how to handle the business partnership in the case of death. Having this type of approach can protect your business assets from a lawsuit that may be against your partnered company. Protection is the crucial point of why you should use an exit strategy within your partnership.
Use an Information Security Specialist
Using a security specialist to send data to your business partner will secure the confidentiality of the document. They are also able to manage software, key policies, protect digital certificates, and more. A security specialist uses a system such as PKI to help to encrypt documents. What is PKI exactly? Public key infrastructure (PKI) supports public encryption while allowing business partners to send data safely through the internet to another network.
Using a security specialist can also ensure that your business will be safeguarded against external threats. They reduce the security breach of client’s personal information as well as other business data. Cyber attacks can destroy a business’s reputation, revenue, and disrupt business growth. Secure your business with a specialist to avoid your company from being targeted by cyber attacks.
Do a Reference Check
Looking at a resume is beneficial, but it doesn’t always tell the whole story. In fact, they may have exaggerated a bit on their resume to make their company look better than they are. Take some time to talk to their current employees and get their insights on how well the company is managed. Look at their business standings on the internet. One way you can obtain information on your potential business partner is to look at Twitter, Facebook, or LinkedIn.
These sites can tell you what people are saying about the company. Look at their reputation and work ethics. If possible, talk to their clients or customers to see if they were treated fairly. Lastly, check to see if there are any blog post or news articles about its business dealings or accomplishments. Combined all the information collected with the references that is provided to you. Have your meetings face-to-face to get a good sense of the company. Keep a close eye on their body language because it tells a lot about a person.
The bottom line is to use common good sense when choosing a business partnership. The primary purpose of a business partnership is to help each other succeed and grow in the business field. Always take the time to do your research and be careful who you choose to help uphold your good standing reputation.