If you work in the alcohol industry, then going into partnership is a real possibility. Maybe you started out brewing on a small scale, and now that you have your recipes and process sorted you want to expand to selling to more than just your friend’s bar. Or perhaps you have been distributing wine locally and see the opportunity to distribute it globally.
Expanding your business may require things you don’t have, such as extra funds or particular skills. Maybe you are a fantastic brewer but have no idea how to market your business. Or perhaps you are a fantastic salesperson but do not have the language skills for the countries you want to sell to. Whatever the reason you wish to take on a partner, it is important to bear a few things in mind.
1. Are you prepared to give up total control?
Partners want something in return for their input. Whether it is a slice of the profits or an input into how the business is run, you must be sure you are willing to give it up. Doing so begrudgingly is unlikely to work out well. They should also be clear about what they will get, so they are not expecting more than you thought you had agreed on.
2. What do you expect from each other?
You find a willing partner who has a great business record. What if they only achieved that success through working all the hours under the sun whereas you prefer a more relaxed approach? Be sure you understand what you expect of each other in terms of commitment, time and more.
3. How will it end?
There will almost certainly come a time when the partnership must end. It could be because one of you wants to do something different with their life, or because you find working together is not as good as you hope. Thinking about how you can end things now allows you to put provisions in your partnership agreement that can save disputes when the time comes. For example, determining how you will value the business if one of you wants to sell your share to the other.
With appropriate legal guidance, you can think things through and draft a contract to back it all up.