4. Use contracts with your business partners and others.
If you plan to start your new venture with others, be sure to have a contract (legal agreement) with your business partners spelling out the business understanding among everyone and avoiding and alleviating misunderstandings between co-owners. The following are some of the key considerations your agreement should cover: ownership interest of each partner, including transfer of ownership, partners’ roles and responsibilities, partner money and/or asset contributions, salaries (if any), money distributions, decision making, the purpose and overall goal of the business, dissolution of the company, among other considerations.
Not only is important to have a good understanding of your relationship with any partners by means of a written contract, but as a business owner, you will often have to enter into contracts with other businesses and people, such as subcontractors, employees, suppliers, customers, and landlords. While many business agreements can be found online, it is often advisable that a business attorney craft them based on the specific circumstances and needs of your business. Having well prepared contracts for your business provides clarity, and can help avoid litigation which can drain the company of its cash and time resources.
In conclusion, by working diligently through the considerations mentioned in this article, you are on the path to mitigating common mistakes and the frustrations which come with making them. It is difficult enough to launch a successful business startup, so educate yourself -- plan ahead and save time, money and stress in the long run. Assembling a strong team of business professionals, including lawyer(s) and an accountant, will also help.