When operating a business, two people working together can often make more progress than one person working alone. While this is sometimes true, the amount of success that you have when you collaborate with a partner will have a lot to do with your ability to work with others. It also has a lot to do with the distinctive talents that each person brings in.
Partnerships are basically arrangements in which two or more people co-own a business. These partnerships can help to reduce the liabilities of the business. In a sole proprietorship, liability is placed on a single person. In a partnership, it is shared. Also, taxes are filed individually instead of as a company. This can be both a positive and a negative. On the negative side, when you have debts for your business they become a personal obligation.
Another type of partnership to consider is a joint venture. This is a partnership in which two or more businesses team up together. This allows the businesses to combine their resources in order to benefit both companies.
If you decide on a joint venture, you will be able to:
- Extend the reach of your marketing
- Access more resources
- Reach markets that were previously inaccessible
- Build your rapport with your target audiences
Before you set out on a joint venture, you will want to make sure that you have goals set in place. You can use the networks that you have to look for other companies that share those goals.
The rules regarding joint ventures are very lax in Canada, so you will want to make sure that you put together a contract. In this contract, you will want to include the following:
- Terms of the venture
- Management structure
- Sharing of profits
Planning out your collaboration in advance will help to increase the chances of success in these efforts.