Navigating the First 90 Days: Starting a Business With Partners the Right Way
2. Incomplete Financial Commitments: • Problem: Discrepancies in financial contributions lead to frustration and resentment among partners. • Solution: Ensure that all agreed-upon
Starting a business with partners can be an exciting endeavor, filled with potential and shared dreams of success. However, too often, these ventures take a wrong turn within the first 90 days, leading to disagreements, frustrations, and potential business failure. In this article, we will explore common pitfalls and offer guidance on how to ensure a smooth start when forming a business with partners. One key mistake many entrepreneurs make is rushing into business without establishing a solid foundation. Here are some common pitfalls. 1. Lack of Formal Agreements: • Problem: Partners often neglect to create a formal operating agreement, leaving critical business terms undefined. • Solution: Draft a comprehensive operating agreement with the help of an attorney, covering potential scenarios like deadlocks, exit strategies, and decision-making processes.
financial contributions are made before any commitments or business activities commence. 3. Failure to Implement Agreements: • Problem: Partners may not sign or implement the operating agreement, leading to uncertainty and disputes. • Solution: Require all partners to sign the operating agreement before any business activities begin to ensure commitment and understanding. If you find yourself within the crucial first 90 days of your business venture, consider the following steps to ensure a positive start.
Continued on Back ...
6770 S. McCarran Blvd, First Floor Reno, NV 89509 775.448.6070 SierraCrestLaw.com
Made with FlippingBook Ebook Creator