3 Things to Verify Before Signing a Partnership Deal

It is a natural tendency that we want to share responsibilities and control when it comes to running a business. However, it is imperative to find a compatible business partner for it.

 

Although there are multiple ways to find and partner with an organisation that can help boost your establishment, you will always have doubts while deciding on the right fit for your business.

 

There are a few things you must know about the potential partner before you sign a contract with them. I will list down the essential points you must verify during the decision-making process because a partnership is not just about 'teaming up' to work together.

 

Financial Contribution Involved

 

Based on how involved you would be financially with your new business partner, having a fair idea of where that company stands is necessary.

 

Is your potential business partner on a firm financial footing. Try to know If there is any kind of debt involved and if yes, is it under control.

 

How much you need to know about a partner’s financial stability depends on how involved you want to be with your business partner in terms of money. The greater the entanglement, the more you need to know.

 

Well-Written and Researched Agreement

 

A loosely written partnership agreement could drown you in a pool of personal liabilities. Having experienced lawyers draw up the contracts and yield transparency between partners should be a priority on both ends.

 

Share of Strengths and Weaknesses

 

What are the things that each company brings to the table? How is it that the two companies can help each other grow? What are the skills and capabilities that each company brings to the table? These are all important questions before you decide to get a company onboard as a business partner.

 

If two people have different beliefs, values and way of completing a task, these differences are likely to affect you mentally (for example, temperament) and professionally.

 

If you are having a hard time gauging whether you should associate with a specific business, you can make use of Dun & Bradstreet’s iAccess. It provides a business’s signatory details, company financial reports, and brief knowledge about the partners, which will help you ascertain the credibility of a business. The data provided by D&B is accurate and trustworthy and is updated regularly through several sources.

 

It is important to share your business goals with your business partners. So, as an entrepreneur, it is always better to comb through a potential partner’s important data, than blindly trusting your gut and regretting later.