Get Your Business Funded: Creative Methods for Getting the Money You Need

Partnerships Agreements

Because there are so many moving parts to a partnership, it is vital that you put your agreement in writing. Think of a partnership agreement as a prenup for your business. It covers the worst-case scenario and dictates what will happen should the worst indeed come to fruition, because sometimes it does. Because of its importance, you need the assistance of a lawyer; you don't perform surgery on yourself, and likewise, you should not represent yourself in legal matters as important as a partnership agreement.

Your partnership agreement should cover at least the following:

• Identification as to what sort of partnership is being created.
• Identification of who invested how much, how partnership shares are to be divided, and how profits are to be distributed.
• The rights, responsibilities, and duties of each partner.
• If and how partnership shares can be transferred.
• Exit strategies.
• How to oust a partner.
• Causes of dissolution, and distribution of assets upon dissolution.
• Salaries.

Bottom Line: Finding a partner with money to invest in you and your business may not be easy, but it can be done, and can prove to be a great asset to your business in many ways beyond the financial. Choose the sort of partnership that bests fits your respective interests.