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2017

Steve Strauss Headshot.pngPricing your business’ products or services is a tricky business. You don’t want them to be too high because that will drive customers away. You don’t want them to be too low because that will leave money on the table. Like Goldilocks’ porridge, you want your prices to be just right.

 

Easier said than done, you say? Maybe, but let’s take a deeper look.

 

When looking to set the optimal price for the things you sell, there are three foundational factors to consider.

 

1. Your cost. With the exception of some rare circumstances determining the costs for you to buy something is where you must start when setting your prices. If you pay $10 to buy a widget, then that’s that. But don’t stop there. You must also factor in your overhead. Overhead includes factors such as:

 

  • Rent
  • Labor
  • Insurance

 

Between the wholesale cost of the item and related overhead, you get your base cost.

 

THE 7 BUDGETING TIPS YOU NEED TO CONSIDER

 

2. Your brand. What you would pay for a VW is not the same as what you would pay for a Mercedes. Why? Because each company has a different brand, different quality and different pricing strategies.

 

The same is true for your business, brand and pricing. If it’s a high-end shop, then you need to charge high-end prices. If you are the “low-price leader,” needless to say, you need to have low, low prices.

 

The key factors to remember about both is that the luxury market allows you to charge more and make a greater profit per sale, but you will sell less. The lower price strategy allows you to penetrate the market more, sell more, but make less per sale. Both are equally valid, but the one you choose depends on your brand.

 

3. The competition: You must consider what the competition is doing. If they sell that widget for $15, you are going to need to be in that ballpark. This is especially true, today, when it is so easy to price compare online.

 

Remember this too: Price is just one factor that people consider when making their buying decisions. Sure, there are times when it is the most important thing, but not always. How often is price the main reason you bought something? Exactly. It’s important, but not always the deciding factor.

 

CLICK HERE TO READ MORE ARTICLES FROM SMALL BUSINESS EXPERT STEVE STRAUSS

 

With that foundation in place, here are a few pricing strategies to consider:

 

59230087_s.jpgThe loss leader: The loss leader is a tried-and-true strategy that can be a great way to grow any business. It’s a simple concept. You offer a popular product at a steep discount, at a loss even. By offering this, you lead customers to your business, hence, “loss leader.”

 

The idea is that once they get to your store to buy the sale item, they will hopefully buy other products or services from you as well that are not marked down. When you see an ad for an amazing sale somewhere, that store is hoping to lure you into their shop with the discounted ad price, and then sell you something else.

 

Other than getting a sale, the loss leader strategy can also be also used for:

 

  • Getting rid of unwanted merchandise: The loss leader can move old merchandise.
  • Attracting new customers: People love sales.
  • Building your brand: If you would like to be known as the “low-cost leader,” this strategy will help.
  • Build repeat customers: As indicated, people like a bargain. If they find that you are offering one, then they will likely come back again.

 

The luxury price: At the other end of the spectrum, selling for more works great if that fits your brand. For example, Apple CEO Tim Cook told Bloomberg Businessweek in an interview, “We never had an objective to sell a low-cost phone.” The Apple strategy has long been:

 

  • Offer a few high-end products
  • Pursue high profit over broad market share

 

This type of strategy can work if you have some sort of competitive advantage in which people are willing to pay a premium.

 

Psychology pricing: Along similar lines, prices that end in odd numbers seem cheaper than those ending in whole numbers. A widget for $14.99 is different than a widget for $15.

 

When it comes to pricing, what works is often a matter of taking all the above into account, adding in some trial and error, and finding the sweet spot of price.

 

About Steve Strauss

Steven D. Strauss is one of the world's leading experts on small business and is a lawyer, writer, and speaker. The senior small business columnist for USA Today, his Ask an Expert column is one of the most highly-syndicated business columns in the country. He is the best-selling author of 17 books, including his latest, The Small Business Bible, now out in a completely updated third edition. You can also listen to his weekly podcast, Small Business SuccessSteven D. Strauss.

 

Web: www.theselfemployed.com or Twitter: @SteveStrauss

You can read more articles from Steve Strauss by clicking here

 

Bank of America, N.A. engages with Steve Strauss to provide informational materials for your discussion or review purposes only. Steve Strauss is a registered trademark, used pursuant to license. The third parties within articles are used under license from Steve Strauss. Consult your financial, legal and accounting advisors, as neither Bank of America, its affiliates, nor their employees provide legal, accounting and tax advice.

           

Bank of America, N.A. Member FDIC.  ©2017 Bank of America Corporation

Steve Strauss Headshot.pngBack when I was an anonymous young associate lawyer at a big law firm, I had big dreams. I wanted to be an author. The fact that I had never even had a letter to the editor published should have stopped me, but it didn’t. It took a lot of perseverance, striking out, and planning big, and eventually I was able to make the leap.

 

Many small businesses face similar dilemmas. Stuck in a rut, they oftentimes want to grow, make more money, and make a difference. The question is, how do you take your business from small to big?

 

CLICK HERE TO READ MORE ARTICLES FROM SMALL BUSINESS EXPERT STEVE STRAUSS

 

As a small business owner, you are likely very comfortable with the way you do things. However, if you feel like you’re ready to grow and take your business to the next level, the first thing to understand is that it’s time to get uncomfortable; bigger businesses do things differently. Indeed, to play in the big(ger) leagues, you will need to let go of your old ways, and learn some new tricks.

 

Here are four of the most important small-to-big strategies to prepare you for that next step:

 

1. Have a Growth Strategy: The first thing you should do is compile a list of various ideas for growth that make sense for your business:

 

    • Spend more money on marketing, or
    • Open another location, or
    • Create an additional profit center

 

There is no shortage of ideas and strategies to help grow your business. Indeed, here on the Bank of America Small Business Community, you can find scores of articles on the subject. The important thing is to come up with and commit to a few strategies that make sense for your business.

 

2. Create a Team That Is Bigger Than You: Running the show solo is one of the most common mistakes among small business owners, even if it is very popular these days. 

 

Doing it all yourself is not wise – you need your support system. If growth is your game, then teamwork must be your name. To grow your business, it is essential that you pull together a team – employees, contractors, consultants, a board of advisers, partners, investors, etc. People invested in your dream and strategy.

 

SIX TIPS TO GAIN NEW CUSTOMERS

 

This is how bigger businesses are run – with a division of labor. With more people, you have a system for instant feedback and a diverse array of opinions, which are both crucial for growth. In addition, having more assistance, more contacts, and more expertise, will only help you to accomplish more than you could by yourself.

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3. Be Unique: To grow your business, you should be thinking practically and strategically. However, you should also be brainstorming to find that one thing – the X factor – that makes your business stand out from the crowd. Think about businesses you like and patronize. Isn’t it true they do something unique, different, special and better?

 

It’s because they have an X factor.

 

So that is the question you must answer: What is it that you offer that is different and better? Amazon sells more things, cheaper. Starbucks has better coffee served in a hipper atmosphere. You need to figure out your X factor if you want to go from small to big.

 

4. Plan Big: Planning big is different from thinking big (although thinking big is certainly a part of it). All entrepreneurs think big, but growth companies plan big. McDonald’s was a single Southern California restaurant until Ray Kroc showed up with a plan to franchise it.

 

Each of these four steps is part of the growth process. After you’ve created a great team, decided on your growth strategies, determined your X factor, and planned your world dominance, you will be ready to go from small to big.

 

About Steve Strauss

Steven D. Strauss is one of the world's leading experts on small business and is a lawyer, writer, and speaker. The senior small business columnist for USA Today, his Ask an Expert column is one of the most highly-syndicated business columns in the country. He is the best-selling author of 17 books, including his latest, The Small Business Bible, now out in a completely updated third edition. You can also listen to his weekly podcast, Small Business SuccessSteven D. Strauss.

 

Web: www.theselfemployed.com or Twitter: @SteveStrauss

You can read more articles from Steve Strauss by clicking here

 

Bank of America, N.A. engages with Steve Strauss to provide informational materials for your discussion or review purposes only. Steve Strauss is a registered trademark, used pursuant to license. The third parties within articles are used under license Steve Strauss. Consult your financial, legal and accounting advisors, as neither Bank of America, its affiliates, nor their employees provide legal, accounting and tax advice.

 

Bank of America, N.A. Member FDIC.  ©2017 Bank of America Corporation

Inaugural Report Highlights Optimism in 2017 for Hispanic Small Business Owners

 

Hispanic entrepreneurs are one of the fastest-growing segments of the small business sector, making contributions to the economy and job creation like never before. In order to more acutely understand the unique experiences and perspectives of this group, Bank of America surveyed approximately 300 Hispanic small business owners from across the country about issues ranging from their economic and business outlooks for 2017, to their views on lending and the role that their communities have in the success of their businesses.

 

For additional insights, see the Hispanic Small Business Owner Spotlight infographic below.  For a complete, in-depth look at the insights of the nation’s Hispanic small business owners, download the full 2017 Bank of America Hispanic Small Business Owner Spotlight (PDF).

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What if Amazon still only sold books? What if Starbucks still only sold coffee? What if McDonald’s only sold hamburgers? Would they be Amazon and Starbucks and McDonald’s? Would you have ever even heard of them?

 

So why are you still only selling the same few products or services?

 

What Amazon, Starbucks, McDonalds and countless other great businesses – big and small – learned is that one key to continued growth is creating new streams of revenue - multiple profit centers.

Steve Strauss Headshot.png

 

Look, I get it, being self-employed can be laborious. Even after things are finally off the ground and have become a reality, there is always more work to be done. In particular, one of those ongoing challenges is figuring out how to create a regular, steady stream of income. Some days this feels effortless, while others, it does not.

 

Click here to read more articles from small business expert Steve Strauss

 

If you’ve been in it for a while, then you have most likely figured out a few solid strategies that work for your business. You have created a recipe for success. Like a chef or a baker, your recipes can be used time and time again to create the same financial result. This is how you make your dough (groan, I know!). Your recipes could be anything - Twitter ads, monthly sales, an e-newsletter promotion, and so on.

 

However, the recipe method can backfire. A lot of small businesses make the mistake of figuring out one good recipe, sticking to it, and never figuring out a “plan B” once they’ve milked Plan A dry. Having only one moneymaking formula is a problem in that the cycle of business is inherently fluctuating; just because you have something that works now doesn’t mean it will work six months from now. Tastes changes, things get stale.

 

That’s why, in order to guarantee a steady income stream, you need to be like Amazon and Starbucks and create several moneymaking strategies – or “multiple profit centers” as Barbara Winter refers to it in her great book Making a Living Without a Job.

 

Let’s drill down into the Starbucks example. The Seattle behemoth creates many multiple profit centers, typically by introducing new products and with seasonal marketing. In the summer, Starbucks tends to market the heck out of its cold beverages, whereas in the fall and winter, an array of seasonal hot lattes are introduced.

 

Related article: The 7 Budgeting Tips You Need to Consider

 

It’s like being an investor - you need to diversify your portfolio.

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And what about Amazon? Amazon started out as a home-based business that only sold books, but eventually, Jeff Bezos realized that the company would make a whole lot more money if they offered a diverse array of products. He created multiple profit centers. Now they sell everything.

 

Amazon and Starbucks are two of the most successful businesses around. Both prioritize the need for multiple profit centers and both businesses did this early. Because they did this early, they ensured a solid, consistent flow of cash and made the right impression on customers. The earlier you can diversify your business, the better.

 

There are endless ways to add multiple profit centers to your business, whether you’re a lawyer, artist, contractor or restaurant owner. Look to see what the competition does, get creative with your own ideas, and before long, you too can be sipping a full-cafe revenue latte.

 

About Steve Strauss

Steven D. Strauss is one of the world's leading experts on small business and is a lawyer, writer, and speaker. The senior small business columnist for USA Today, his Ask an Expert column is one of the most highly-syndicated business columns in the country. He is the best-selling author of 17 books, including his latest, The Small Business Bible, now out in a completely updated third edition. You can also listen to his weekly podcast, Small Business SuccessSteven D. Strauss.

 

Web: www.theselfemployed.com or Twitter: @SteveStrauss

You can read more articles from Steve Strauss by clicking here

 

Bank of America, N.A. engages with Steve Strauss to provide informational materials for your discussion or review purposes only. Steve Strauss is a registered trademark, used pursuant to license. The third parties within articles are used under license from Steve Strauss. Consult your financial, legal and accounting advisors, as neither Bank of America, its affiliates, nor their employees provide legal, accounting and tax advice.

 

Bank of America, N.A. Member FDIC.  ©2017 Bank of America Corporation

No matter what type of business you own, whether you sell B2B or B2C, and even if you don’t directly cater to them, Millennial customers matter to you. Why is this generation, born between 1982 and 2000, so important to businesses? Consider these statistics.

 

  • Millennials (also known as “Gen Y”) are the biggest generation ever born in the U.S., topping 83 million according to the U.S. Census Bureau.
  • Older Millennials—those aged 25 to 35—are entering their prime spending years. Accenture has projected that by 2020, Millennial spending will reach $1.4 trillion per year, and that this age group will account for 30 percent of all retail sales.

Rieva Lesonsky Headshot.png

 

Size and spending power are part of what makes Millennials important—but as with the Baby Boomers before them, what matters most is their influence. Here are nine ways they are re-shaping the world and impacting small businesses.

 

1. They’re less interested in ownership. Millennials care less about “things” and more about “experiences.” With heavy student loan debt limiting their disposable income, they tend to spend what they do have on technology and travel. With ownership less of a priority, “sharing economy” business models such as Uber are thriving.

 

Related article: Selling to Millennials: 5 Tips to Market with Authenticity

 

2. They’re tech natives. Millennials are the first generation to grow up with computers as part of their daily lives – they go online, and mobile, for just about everything. Bank of America has reported that 96 percent of younger Millennials (aged 18-24) say mobile phones are the most important product in their lives. This “mobile-first” attitude is transforming retailing, marketing and banking, with mobile payments rapidly becoming a necessity for all types of businesses.

 

3. They’re taking a different approach to adulthood. Millennials are delaying marriage; 18 to 34-year-olds are more likely to be living with their parents than in any other type of living arrangement, Pew reports. Rather than marrying or buying homes, they’re focusing more on education. One-third of older Millennials have a four-year college degree or higher, making this the best-educated generation in the history of the U.S.

 

4. They’re becoming parents. Millennials want to be good parents and tend to take a more lighthearted approach to parenting than the generations right before them. In 2015, Millennial moms accounted for more than eight in 10 births.

 

5. They want it now. Trained to expect immediate gratification, Millennials expect businesses to make their lives easier and more convenient. They rely on mobile apps for everything from chatting with friends to banking or booking travel arrangements. Because convenience is paramount, they’re less brand-loyal than prior generations.

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6. They’re influencers. Millennials have impact both up and down the demographic ladder. They influence their children’s purchases, and influence their parents’ in turn. For instance, Millennials are likely to be early adopters of new technology; once Millennials become comfortable with technology, the older Gen X’ers and Boomers will adopt it as well.

 

Click here to read more from small business expert Rieva Lesonsky

 

7. They trust peers, not ads. Having lived through the Great Recession, Millennials tend to distrust institutions—including businesses and traditional advertising. Instead, they turn to their friends, family and peers for recommendations. Fifty-five percent of Millennials say they learn about products, promotions and offers on social media. Millennials are making user-generated content, social media and online reviews the primary means of earning trust.

 

8. They’re racially and ethnically diverse. More than four in 10 Millennial adults (43 percent) are non-white, Pew research says—more than in any prior generation. By 2043, the Census Bureau projects, the U.S. population will become majority non-white, and Millennials are leading the way. Stereotypes or marketing messages that aren’t inclusive won’t work with this generation.

 

9. They’re socially responsible and expect businesses to be the same. For Millennials, social responsibility goes beyond caring for the environment. It extends to issues such as how you treat your employees or whether your products are fair trade. Whether you get involved in social causes by donating money or volunteering, make sure your efforts are legitimate—Millennials can smell inauthenticity a mile away.

 

About Rieva Lesonsky

 

Rieva Lesonsky is CEO and Co-founder of GrowBiz Media, a custom content and media company focusing on small business and entrepreneurship, and the blog SmallBizDaily.com.  A nationally known speaker and authority on entrepreneurship, Rieva has been covering America’s entrepreneurs for more than 30 years. Before co-founding GrowBiz Media, Lesonsky was the long-time Editorial Director of Entrepreneur Magazine. Lesonsky has appeared on hundreds of radio shows and numerous local and national television programs, including the Today Show, Good Morning America, CNN, The Martha Stewart Show and Oprah.Lesonsky regularly writes about small business for numerous websites and for corporations targeting entrepreneurs. Many organizations have recognized Lesonsky for her tireless devotion to helping entrepreneurs. She served on the Small Business Administration’s National Advisory Council for six years, was honored by the SBA as a Small Business Media Advocate and a Woman in Business Advocate, and received the prestigious Lou Campanelli award from SCORE. She is a long-time member of the Business Journalists Hall of Fame.

 

Web: www.growbizmedia.com or Twitter: @Rieva

You can read more articles from Rieva Lesonsky by clicking here

 

Bank of America, N.A. engages with Rieva Lesonsky to provide informational materials for your discussion or review purposes only. Rieva Lesonsky is a registered trademark, used pursuant to license. The third parties within articles are used under license from Rieva Lesonsky. Consult your financial, legal and accounting advisors, as neither Bank of America, its affiliates, nor their employees provide legal, accounting and tax advice.

 

Bank of America, N.A. Member FDIC.  ©2017 Bank of America Corporation

From the day that you first decided to start a small business, you have been the lifeblood behind every activity. You've done it all – making every decision and watching over every operation. But, what happens next?

 

Whether you want (and need) a vacation, fall ill, want to retire or maybe just find someone to take the business to the next level, you want to know that the business will be safe and prosper. You need to have confidence in someone else who can take on the mantle.

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Trusting someone else to take over for you is a necessity, even if it's one of the toughest aspects of small business ownership.

Here are six things you can do to make sure that everything gets done to your satisfaction when you can't be there.

1. Identify likely candidates

Do you have a second in command who is always there to lend you a hand in a pinch? That person may be the logical person to take the reins, but don't ignore some candidates that are less-obvious choices.

You might be impressed by less-visible employees who consistently make suggestions on efficiency and cost savings. Others may be going to night school on their own dime to learn business management. You might notice that team members turn to one person within their ranks for leadership. So, while one person who is gunning for the job may be the perfect choice, cast a wider net to make sure that you find the right new you.

Also, look outside the business to others who have been in similar industries, have strong management styles and share common values with you and your business.

Related article: 8 Different Types of Small Business Management Styles – What’s Yours?

2. Learn what you know

Don't expect to jump immediately into the training process. You've been doing the job for a long time, so chances are you take the details of your job for granted and may forget to mention them to a CEO-in-training.

Do you have a list of people to notify when you issue a new policy? If you change the color of a product that you purchase from your primary vendor, do you have to make sure that backup vendors can also accommodate the change in a pinch? Do you know of a small glitch in the production process that affects the delivery date you promise to customers?

There's a reason why they say the devil's in the details. Make sure that you know every one of them before you try to teach anyone to step into your shoes.

3. Do some hand-offs – and coach

You're no different than every small business owner who has an overabundance of work. Wouldn't it be nice to go home at 5 pm once in a while? You can accomplish this by handing off some of your responsibilities to the candidates you selected.

Whether you hand over bookkeeping tasks, managing human resource issues or even making more decisions, don't expect speed or perfection at the outset. In fact, don't expect to get home by 5pm right away either. Since you must initially take on the role of trainer, you absolutely need to resist the temptation to say "I can do it more quickly myself."

Be prepared to teach, supervise and answer countless questions. But, your efforts will help you gain more free time eventually — while identifying which candidates have the skills and aptitude as leaders.

Click here to learn more from our small business expert Carol Roth

4. Be a true mentor

Step-by-step training alone does not create head honchos. Your protégé needs confidence that can only be created through a full mentor relationship. You need to establish a friendship that encourages honest two-way communication.

Your candidate must be comfortable to readily express concerns about anything, including taking the top leadership role. You need to start the conversation to get the ball rolling. Telling your mentee stories about your own experiences making difficult decisions or handling tough customers is better than just asking if there are any questions or concerns.

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Also, communicate to other staff about why you have confidence in this person and why you believe that even if their style is different, they will be an ideal person to lead the company’s continued success.

5. Go away

You can't predict someone's abilities until you test them. While you probably shouldn't plan a six-month world tour right away, all of your mentoring efforts have certainly earned you a week on a beach sipping daiquiris. Don't be overly available for questions. If you can't leave your devices at home, at least leave them in your hotel room. Your protégé needs the opportunity to exercise decision-making muscles.

If you are bringing in an outside candidate, consider moving to an executive chairperson role so you still have some say, but the day-to-day rests firmly in the other person’s camp.

6. Don't expect a clone of yourself

The objective of replacing yourself is to ensure that your company will continue to thrive without you at the helm for a week, months or forever. Your replacement's role is to get the job done — not to get the job done your way. Every person has individual ways of reaching specific goals. If you prepare them properly, don't be surprised if you learn a few new tricks from them along the way.

About Carol Roth

Carol Roth is the creator of the Future File™ legacy planning system, “recovering” investment banker, billion-dollar dealmaker, investor, entrepreneur, national media personality and author of the New York Times bestselling book, The Entrepreneur Equation. She is a judge on the Mark Burnett-produced technology competition show, America’s Greatest Makers and TV host and contributor, including host of Microsoft’s Office Small Business Academy. She is also an advisor to companies ranging from startups to major multi-national corporations and has an action figure made in her own likeness. 

Web: www.CarolRoth.com or Twitter: @CarolJSRoth.

You can read more articles from Carol Roth by clicking here

Bank of America, N.A. engages with Carol Roth to provide informational materials for your discussion or review purposes only. Carol Roth is a registered trademark, used pursuant to license. The third parties within articles are used under license from Carol Roth. Consult your financial, legal and accounting advisors, as neither Bank of America, its affiliates, nor their employees provide legal, accounting and tax advice.

Bank of America, N.A. Member FDIC.  ©2017 Bank of America Corporation

My dad owned two businesses. His first was a single store that he and his partner grew to be one of the largest chains in California. The second, later in his life, was a carpet warehouse. While dad liked that second business, it was never nearly as successful as the first one.

 

Why is that? The main reason was because he didn’t have a partner involved in his second business. There was a certain energy that surrounded them and that business. While dad didn’t always love having to account for his partner, he sure did have fun and make a lot of money. As partners, they complemented each other so well that their venture couldn’t help but reflect their synergy (even if sharing the sandbox was not always easy).

Steve Strauss Headshot.png

 

As an entrepreneur, it’s natural to want to do much of everything ourselves; that is in our nature. Your business is your passion and your brainchild, so it makes sense that you may think that you are the one best suited to actualize your vision – and my Dad oftentimes thought that. It certainly feels unnatural for many small business owners to relinquish control.

 

Unfortunately, you probably need to.

 

Not even the best entrepreneur can do it all on their own. Ben has Jerry, Bill Gates had Paul Allen, Steve Jobs had Steve Wozniak, my dad had his partner Phil – you get the point. The numbers don’t lie: according to SCORE, the best startups are approximately 59% more likely to have more than one founder than less successful startups.

 

There are many reasons for this:

  • It saves money. A partner can be an investor in your business and someone with whom to share financial responsibilities
  • You will have someone to bounce ideas off of. Two heads are better than one
  • Better delegation = less to do = more free time = more energy
  • Networking opportunities. Bringing in a partner will instantly increase your list of contacts and clients

 

Related article: The 6 Essential Teammates Your Small Business Must Have

 

Pretty convincing, right? Once you have accepted that you just may, in fact, need a business partner, the question then becomes: how do you go about finding the right one? Here are five things to keep in mind:

 

1. Start with your strengths and weaknesses: By knowing yourself, you will know what your business needs in order to thrive. Look for a business partner with a different skillset than your own. It’s sort of like the Yin/Yang symbol – combined they make a whole. That is what you want.

 

If you tend to procrastinate and forget deadlines, you may want a partner that’s good with time management and organization. If you are not really a people person, find someone who is. By balancing your weaknesses with another person’s strengths, the whole will be greater than the sum of the parts.

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2. Look for someone who shares your values: Even though you certainly need somebody with a different skillset, you still need to make sure that you both share the same values and have the same vision for the business.

 

3. Take your time: Don’t rush into a partnership hastily as the stakes are very high. You need time to evaluate your potential partner – is he or she trustworthy? Are they good at listening? Do they need constant direction, or are they good at acting independently?

 

One tip is to try working on a few projects with them before jumping into a full partnership to test the waters and see how it goes. You can think of this as dating before getting married.

 

Related article: 5 Steps to Finding a Business Mentor

 

4. Choose carefully: A partnership is like a marriage. You will be spending a lot of time together and sharing decisions. Similarly, each partner can make financial decisions for the union that both are responsible for. So, take your time and remember that half of all marriages end in divorce. Choose wisely.

 

5. Put it in writing: No matter how much you trust this person, putting as much in writing as possible should always be the cardinal rule. Your contract should specify who will be doing what, how much money is involved, and the conditions for backing out if things go wrong.

 

I want to quote the movie Jerry Maguire here. “You complete me.” Almost, but not quite; a little maudlin. Instead let’s say that a good partner should help you grow the business such that you will both be able to say, “show me the money!”

 

About Steve Strauss

Steven D. Strauss is one of the world's leading experts on small business and is a lawyer, writer, and speaker. The senior small business columnist for USA Today, his Ask an Expert column is one of the most highly-syndicated business columns in the country. He is the best-selling author of 17 books, including his latest, The Small Business Bible, now out in a completely updated third edition. You can also listen to his weekly podcast, Small Business SuccessSteven D. Strauss.

 

Web: www.theselfemployed.com or Twitter: @SteveStrauss

You can read more articles from Steve Strauss by clicking here

 

Bank of America, N.A. engages with Steve Strauss to provide informational materials for your discussion or review purposes only. Steve Strauss is a registered trademark, used pursuant to license. The third parties within articles are used under license from Steve Strauss. Consult your financial, legal and accounting advisors, as neither Bank of America, its affiliates, nor their employees provide legal, accounting and tax advice.

 

Bank of America, N.A. Member FDIC.  ©2017 Bank of America Corporation

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