Know Your Business Partners in Mankato, Minnesota

How well do you know anyone? Really. Can you honestly say you know someone so well you can predict what he or she will do in any given business situation? If this were the case, there would be fewer breakups in the business world. Even if you did understand another well, this doesn’t mean one of you wouldn’t change as other events unfolded. If you want to counter potentially bad business relationships, the bankruptcy attorneys at Behm Law Group, Ltd., recommend you consider the following steps in the Mankato area:

1) Do a background check on any potential business partners. Your due diligence in this area could avert a Bernie Madoff catastrophe.

2) Have an attorney review any legal documents you use in your business. This review should include any agreements or contracts with another business party.

3) Agree on a code of conduct. How should discrepancies or conflicts be handled? Put this agreement in writing.

4) Determine the areas of responsibility for each party. What happens when one person goes on vacation? What happens when one party interferes in the duties of the other? What happens as new areas of responsibility emerge as the business evolves?

5) What if one party is compromised in any way, legally or ethically? Be prepared to know what you would do in this case.

These five steps should allow you to forge a more meaningful business relationship. At times, it may be best to reassess some of these or other areas as your business develops.

Keep in mind that people can change. Who you thought was a person of sound character may change and almost devastate the business. Installing a system of checks and balances can help to thwart any intentions of wayward souls.

Although it may seem daunting at first, documentation is your friend. It provides clarity and structure to an otherwise fluid relationship. It can minimize misunderstanding and thwart ill intentions.

Let’s face it. If you don’t strive to make your business relationships concrete in the Mankato, Albert Lea, and Owatonna areas, one day you may be looking at bankruptcy because of something your business partner did.

If you find yourself having to file for bankruptcy, or you want to discuss your options should this occur, contact the bankruptcy attorneys at Behm Law Group, Ltd. in the Mankato, Minnesota area.

Business Partners and Bankruptcy in Mankato, Minnesota

Does becoming an entrepreneur sound exciting, yet scary, to you? Would you feel more confident if you could have a business partner? After all, they say two heads are better than one. Of course, you’ve chosen the right person, someone nice and funny. Maybe this person resembles yourself. The bankruptcy attorneys at Behm Law Group, Ltd. strongly suggest you vet any potential business partner to help avoid bankruptcy in Mankato, Minnesota.

You might think we’re simply being pessimistic or, because we’re lawyers, we’re just trying to garner some business. Ask yourself though; how well do you really know this person? How well do you really know anyone? Even people in established relationships have been shocked to find out something about their partners that they never knew before. A relationship is just one aspect to consider.

Starting a business requires money. First, you have to seriously look at how you handle money. If your potential partner handles money just like you do, you’ve only found a similarity. If you know you have money issues, then the partner would have those same issues. And you thought bankruptcy wasn’t a possibility in Mankato, Minnesota, because the partner seemed “nice.”

What if the partner handles money differently? Now you have a potential conflict. How are you at dealing with conflicts and disagreements? How does your partner take care of such matters? If you have a business agreement, do you stipulate how differences are to be addressed? Are you still satisfied that being nice is the only qualification for becoming a business partner?

The bankruptcy attorneys at Behm Law Group, Ltd., would like to suggest you vet any potential business partner. No relevant topic should be considered too sacred to discuss, including bankruptcy. Consider researching the person’s background, observing him or her in various situations, and asking others for their unvarnished opinions. The time you invest in uncovering answers now may help you avoid bankruptcy later on.

If you decide to start a partnership after a thorough analysis, make sure you draft a business agreement that incorporates all important points. Don’t leave anything to chance. Once a disagreement arises, you will both feel better that a written course of action exists. At the point of contention, you will be able to focus on specifics rather than becoming embroiled in emotions.

The bankruptcy attorneys in Mankato, Behm Law Group, Ltd., are here for you should bankruptcy issues surface. And, by the way, we’re nice, too. We don’t just act that way. We are that way. Unless you’re the other guy. Then we’re tenacious. Don’t believe us? Just call Behm Law Group, Ltd. to find out.