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Ensuring a smooth partnership during a business start up

Many New Jersey residents dream about the days when they can leave their jobs and go into business on their own. While some choose to stay in their employment indefinitely, others decide to go out on their own or with a friend to make their small business dreams into realities. However, an unfortunate number of new businesses quickly fail for a variety of money-based reasons.

A recent article discusses some of the major reasons that problems in business partnerships lead to new business failures. These reasons also relate to individual business ownership and can be helpful considerations for people considering sole proprietorships. One of the problems involves assessing how a potential business partner handles challenges. Working with someone who can emotionally and professionally handle ups and downs is an asset in a business partnership.

Additionally, partners to a new start-up company should ensure that their objectives for the organization are on the same page. In some cases partners go into business endeavors together but soon realize that they have different goals for the entity. Discussing such matters early on can help new business owners avoid costly and sometimes fatal mistakes.

Finally, partners should understand how each views and manages money. While some people may be more inclined to spend money during a start up, others may want to hold back funds until such time the business's success is more established. Arguments about money can quickly lead to operational problems for businesses with joint ownership.

Any person thinking about going into business for herself should assess these issues regardless of whether she will have a partner. Anticipating problems can help a new owner avoid situations that could tank her business start up before it even takes off. While these considerations will likely be helpful for individuals starting their own organizations, people who need more help with planning their businesses can find assistance through the guidance of attorneys in the business formation field.

Source: Money.com, "The Best Way to Keep Your New Business from Failing," Antonia Massa, Aug. 8, 2014

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