On my last restaurant update, I had a potential take-out only style location that we were bidding on. Turns out, we let the place go, and looking back, I don’t regret it one bit. The leading motivation? My business partner.
If she wasn’t there, I probably would have made a huge mistake. Letting excitement and imagination lead you in the decision making process is completely wrong. The fact is, I wasn’t ready. I didn’t have a full business plan, finances in place, or positive numbers showing on my spreadsheets, yet I was going for it anyway. This leads me to this post: why it is actually OK to have a business partner and factors you should consider when looking for one.
About 99% of people will tell you to stay far, far away from taking on a business partner. The horror stories of divorce-like settlements and families torn apart by relationships gone sour have tainted the mere thought of having someone there to put your business decisions in check. For a while, I refused the idea myself, wanting desperately to keep my friendships and family intact.
That has all changed now, and here is why:
Choose someone you have worked with before. If you have been in a work environment with this person (whether as boss/employee or co-workers) you might have a good idea of how they function at work. You know their ethic, goals, and you especially know if they are out to simply screw you in the long run. NEVER choose a personal relationship for a business partnership. Just because you have fun when you’re out Saturday night, doesn’t mean you’re both capable of running a business together. My BP and I were boss and employee originally, and as the years progressed, we became friends. Pick out ways that you can compliment each other professionally. The best way for me to describe this is to explain my situation. My BP has two young kids and a very limited schedule, however, she is exceptionally creative and has a real knack for food pairings. In business, she’s not entirely familiar with food costing and spreadsheets or the tedious business tasks. I, on the other hand, do not have a family, and plenty of time to devote to the day to day. While I can be creative, she definitely has me beat, and my knowledge, experience, and education in creating business plans and spreadsheets keeps us on top of those mundane, yet important, details. In summary, our strengths and weaknesses compliment each other, filling in the blanks and eliminating the fight for the “fun” part of the job. Discover a common goal. Sure, everyone wants to make money; why else do we work? But if you both go into this for opposite reasons, you are most certainly asking for a fall out. Fortunately, my BP and I have a common goal. We want to do something with our lives, and have it be fun! If we make money, then that’s a plus. If we write books and build an empire, that’s an even bigger plus. All in all, we have a similar mindset for the future of this venture, making it easier to work together. Know what you are getting into. All businesses are incredibly time consuming. The restaurant business is especially taxing, with long hours, weekend time, and forsaken holidays. Fortunately, when my BP and I first worked together, it was at a restaurant, so we get the long hours, crazy customers, and multitude of stressful situations that come out of this type of business. Expecting it going in, makes it easier for us in the long run. Imagine the surprise when you realize you are in for more than you bargained for… a recipe for disaster. Plan it all out. You don’t have to call in the lawyers from day 1 to make sure you are safe if your partnership crumbles. Communicate and get all of your thoughts down on paper about who does what, when, how often, and for what purpose. Make it legal if you must, but avoid getting into that, if you can. It puts the guard up between you from the beginning. Just like all of your other personal relationships, communicate and be clear of both of your roles from the get go.
In conclusion, a business partner is not as bad as people say. If you do your homework, communicate clearly, and lay out a clear plan, your partnership can be free of stress and complication.
© 2010 Olivia Saez, 38 Miles from Manhattan
By: Olivia Saez
About the Author:
About Olivia Saez
Olivia Saez opened her first restaurant, Strawberry Island, at age 8, serving one thing: Eggs and bacon, with a side of buttered white toast. Since then her repertoire has expanded, and so has her experience, working in the restaurant business since 2001.
Olivia Saez opened her first restaurant, Strawberry Island, at age 8, serving one thing: Eggs and bacon, with a side of buttered white toast. Since then her repertoire has expanded, and so has her experience, working in the restaurant business since 2001.
Studying restaurant management at the French Culinary Institute, Olivia knew she wanted to open her own restaurant. Not quite interested in the rush of New York City, Olivia’s plans are in place near the small town of Mendham, NJ, about 38 miles from Manhattan.
Read about Olivia’s adventures opening the restaurant on her blog! http://www.38milesfrommanhattan.com
