If You Do One Thing Before Launching Your Small Business, Do This

Starting a small business is equal parts exciting and intimidating. Many people have a great business idea and jump in head first, figuring things out as they go. While others take a more systematic approach, planning out each step of the process.

No matter which strategy you choose when launching your small business, here's one thing all small business owners should do before starting.

Get a partner

Starting your own business requires a lot of work, many long hours, and likely a significant financial investment. To be successful, you'll likely need a good partner to help you.

A good partner can help share the workload, bring in new clients, assist with funding, add their unique expertise, and contribute new ideas to your business. There can be a lot of stress and disagreements about how business partnerships work, so it's essential to clearly establish who is responsible for what parts of the business.

If you choose to formalize the partnership, consider setting up your business as a limited partnership (LP) or a limited liability partnership (LLP). An LP is when only one general partner has unlimited liability, while other partners have limited liability. 

On the other hand, a LLP helps protect all partners from debts against the partnership, according to the Small Business Administration.

How to find the right people to partner with 

No two small businesses are alike, so the partnership you need may differ from someone else's. To determine which partner is best for you, you'll need to figure out what's important to you. 

Here are a few factors to consider: 

• Shared vision: Does your potential partner share the same vision for your small business? The path to your business' success may take a lot of twists and turns, but all partners must want the same eventual outcome for the business. 
• Responsibility: An enthusiastic partner is great, but you also want to work alongside people who will work hard and take ownership of their responsibilities.
• Team focus: Some conflicts are normal in business, so you'll need people willing to work past disagreements. Look for people willing to collaborate and work toward long-term business goals.

There's no perfect formula for choosing a partner, but it may be wise to work on a few projects with a potential partner first. This way, you can test drive the partnership before you make a significant time and financial commitment with them.

What happens if you don't find a good partner?

A recent survey by The Zebra found that if there was one thing business owners say they would change about their business, "different partners" was one of the top three responses. Ouch. 

Partnerships take a lot of work and are challenging to get right. That may be why nearly 70% of business partnerships fail. The common reasons are disagreements over money, uncommitted partners, differing views on how the business should be run, and a lack of business success. 

This is why finding the right people to come alongside your small business from the beginning is so important. You might be tempted to breeze through this step and get on with the real work of building your business, but if you overlook the importance of having a strong partner, it could be detrimental to your business and its finances.