Business opportunities with the nTelos Wireless Pavilion provide great partnership with those that are interested in creating such a relationship with us. However, it is imperative for those that seek partnership with us to learn what it means to be in a business partnership.
Factors to consider before inking a partnership deal
The most obvious factor would be to create a partnership deal with those that you can trust. Each of those that comes to your business dealings must be examined closely, whether this is a tenant, a contractor, etc. This can also mean that you perform background checks and even call on personal references. This is particularly true when you are dealing with your business partners and by far this is the most significant way in protecting yourself when you enter into a partnership.
Whenever you foresee one issue or two in your partnership, make sure you address them before they turn out to be real issues. You should talk with your partner about worst-case scenarios. In the event that your partner is not so willing in whatever reason they provide, it only means that they are not a good partner to have.
Read thoroughly the partnership documents and make sure you understand them before signing. You can hire a good lawyer, particularly one that is good in dealing with businesses, that will aid you in identifying any possible issues and solutions to it. However, you and your partner need to take on the agreement’s ownership and share a good understanding of how you and your partner are going to govern the business.
You should also consider getting a different counsel if you are using the same lawyer when your partner is presenting their concerns.
If you are living in the community property state, make sure that you have every spouse of your business partners sign the operating/partnership agreement and any of the amendments. The spouse is presumed to have an ownership interest in the said business and in your part you want the spouse to agree to the provisions of the operating/partnership agreement. This is particularly important especially in regards to the way of valuing the business in situations buying out the partner that is undergoing a divorce.
You have already learned about the setting up of the structure and creating the agreement of partnership. The next step is to understand the whole mechanics of how the business is going to be managed as this will aid in designing the partnership agreement and even documenting the terms that are going along with it.
Some of the processes in dealing with partnerships include:
- Signing of partner roles and its authorizations
- Responsibilities and duties of each partner
- Capital contributions into the partnership deal
- The rights to profits, distribution, losses and compensation
- Exit or dissolution strategy
- Requirements for unanimous vote
- Separate agreement for buy-sell or buy-sell provision
- Noncompete provision
- Expulsion provision
- Miscellaneous provisions
When you do the following above, make sure that you are with your partner or partners with this in order to discuss the best and the worse scenarios that may occur in the span of your partnership.