Skip to main content
  • Claims Center
  • Contact Us
  • Español
  • Brokers & Agents
Hiscox Insurance
Menu Toggle
  • Home
  • Small Business Insurance Toggle Menu Toggle Menu
  • Why Hiscox Toggle Menu Toggle Menu
  • Resources Toggle Menu Toggle Menu
  • Policy Management Toggle Menu Toggle Menu
  • Claims Center
  • Contact Us
  • Español
  • Brokers & Agents
  • About
  • Get a Quote Get a Quote
  • About
  • Get a Quote Get a Quote
  • Blog Home
    Start Your Business
    Grow Your Business
    Protect Your Business
    Celebrate Courage
    Search

    Twenty-Four Seven

    Sign up to get the latest small business news delivered right to your inbox.
    Grow Your Business
    Two men at work fist bumping. start up. business partnership.

    A 7-point checklist for a successful business partnership 

    Tools & Templates | Management
    By: Hiscox Blog

    Share Image

    Embed Image

    Copy

    Share Article:

    So, you’ve decided to start a business partnership – awesome. But as you probably know, nothing is ever quite as straightforward as it sounds when business and money are involved. Making sure you put the right structures in place can put you on the path to startup success. 

    What makes a successful business partnership? Good question. Here are 7 things to consider when starting a partnership business.

    How to have a successful business partnership

    1. Start with the right partner

    Just like marriage, you want to enter a business partnership with the right person. Of course, your partner must be someone you can trust. They should also possess something your business needs but you do not have. That may be money, connections, expertise, or a unique skill set that will allow the business to grow beyond what you can accomplish by yourself.

    2. Create a shared mission and vision

    The vision and mission statements of any business represent the heartbeat of the business. Therefore it is important that both partners agree on what direction the business should take and what your purpose for existence should be. Creating a clear vision and mission with your partner will help you on the path to success.

    3. Set the tone for your business relationship 

    It is important to define the terms of your professional relationship from the start. Besides agreeing on things like who will be responsible for which functions and how much each partner will invest in the business, be sure you’re in agreement on more subjective things like acceptable behavior and work ethic. And think about the future – if there’s something you won’t accept five years from now, don’t accept it at the start. 

    4. Check the communication

    Free, honest, and extensive communication is a non-negotiable ingredient for any relationship to be a success. You should have no hesitation in freely expressing your opinion, desires, expectations, fears, and frustrations in a partnership. If your and your partner’s communication styles aren’t compatible, the partnership may not succeed. 

    5. Regularly plan together

    It’s called partnership for a reason – you’re in it TOGETHER. And that means you need to plan as a team and decide on things together. When both parties bring their ideas, strength, strategies, and resources together, the result is an enjoyable and productive relationship. A truly strong partnership will generate more ideas than either partner can come up with alone, so don’t hesitate to bounce even the most inconsequential or obscure idea off your partner. Who knows what the two of you will come up with?

    6. Create clearly defined job roles 

    In a partnership, job roles and responsibilities can easily become blurry since both of you are technically bosses. So, at the onset, it is critical to state in writing, the duties and responsibilities of each partner. Review these roles periodically – at least every six months or more if there’s a change in the business like hiring a new employee or landing a big contract. Staying on top of who’s responsible for what will help your business run more smoothly. 

    7. Have a solid legal agreement in place

    A formal partnership agreement is crucial, even if you’re going into business with your best friend or your spouse. An agreement protects both partners and can end a lot of disagreements before they even start. 

    Below are a few key items that should be in your legal agreement.

    Partnership Agreement Checklist

    Your business partnership agreement should spell out the following:

    •    Name of the business
    •    Type of partnership
    •    Partners’ information
    •    Division of ownership between or among the partners if they are more than two
    •    Are there limited partners? What will be their contribution?
    •    Dispute resolution
    •    Sharing of profits and losses
    •    Who will manage the business? Or is it going to be a shared responsibility?
    •    What will be done if one partner decides to drop out?
    •    Are family members allowed to participate in the partnership?
    •    What happens in the event of the death of a partner?

    Answers to all of these points will form your foundational business document. And together with the preceding tips, your business partnership will be set up for success!

    Protect Your Business

    Protect the business you’ve worked so hard to build. Get a fast, free quote and your business could be covered today.

    Get a Quote
    Get a Quote
    Subscribe to our newsletter

    Related Articles

    3 Min Read
    Surety bond card on desk with coffee to help you learn all you need to know about surety bonds

    What you need to know about surety bonds and whether you need one

    Management | Entrepreneur

    Here’s what you need to know about what a surety bond is and whether or not your small business needs one.

    Read More

    7 Min Read
    small business owner sitting at desk reviewing her business finances on screen.

    Small business owners offer advice on finances

    Finances | Small Business Intelligence

    We surveyed 140 small business owners to learn their thoughts about business finances. See what they had to say and gain some insights for your own business.

    Read More

    7 Min Read
    female entrepreneur works on her mobile device in office

    Useful apps that will make small business life easier

    Technology | Tools & Templates

    We’re living in a technological renaissance, to help you navigate we've researched some of the best apps for assisting in the day-to-day management of your small business operations.

    Read More


    We’re here to help.
    We provide tailored insurance for the specific risks you face, so you can take the right risks to grow your business.
    Get a Quote
    Get a Quote

    Footer menu 1

    • What We Cover
      • Business Insurance
      • General Liability Insurance
      • Professional Liability Insurance
      • Errors and Omissions
      • Cyber Security Insurance
      • Workers Compensation
      • Other Coverage
    • Who We Cover
      • Small Business Owners
      • LLC
      • Sole Proprietors
      • Entrepreneurs
      • Side Hustle
      • Contractors
      • Home Businesses
    • For Our Customers
      • Refer a Friend Program
      • Covid-19 Response
      • Claims Center
    • For Business Owners
      • Save with our Partners
    • About Hiscox
      • About Us
      • Careers
      • Contact Us
      • Hiscox Corporate
      • Investors
      • Foundation
      • Newsroom
      • We Stand Together
      • Affiliate Partner Program

    Footer menu 2

    • Accessibility
    • Site Map
    • Privacy Policy
    • Terms of Use
    • Legal Notices
    • Español

    Feefo Reviews: Hiscox rated 4.7/5 with 1,067 reviews between January 1, 2022 - January 1, 2023

    * Any cost, premium, or coverage stated before an official customer quote are estimates and an approximation and are not guaranteed. Actual cost, premium, and coverage are subject to the unique considerations of each individual risk. Customer quotes are based on the information provided to Hiscox, and are subject to required underwriting and rating factors. Until an official customer quote is provided, all communication on this website or advertisement is provided as an example for informational purposes only, and is neither an offer nor a guarantee of available premium or coverage. Any coverage afforded by the products described are subject to and governed by the terms and conditions of each policy issued. This information may not be used to modify any policy that might be issued. Any information provided to assist in understanding the coverage we offer does not modify any insurance policy, nor does it imply that any claim is covered.

    © 2023 Hiscox Inc. All rights reserved. Underwritten by Hiscox Insurance Company Inc., 30 N. LaSalle St., Suite 1760, Chicago, IL 60602. As of December 31, 2021, HICI had admitted assets of $1,250,758,353 and policyholders surplus of $332,792,666. Total liabilities were $917,965,687 (inclusive of $433,752,764 of loss reserves) and paid-up capital stock was $4,242,000.

    icon-facebook
    icon-youtube
    icon-twitter
    icon-linkedin