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Education

What to look for in a business partner

the store’s layout, purchasing inventory, buying a point
of sale (POS) system to properly budgeting for utilities,
payroll and other expenses. Starting a new business can
be costly even when done properly, and can become a
financial disaster if rushed or done off the cuff without
budgeting and planning.

It's great to have a business partner to share established
startup costs and help increase the amount of capital for
stocking more products and amenities in your store when
you first launch, as well as in an ongoing relationship. A
business partner with experience may also know more
about running a business than you and therefore be a
great resource in many areas.

Once you've obtained capital to start your business, superb
budgeting (and following plans) is essential to hit the
ground running without coming to a complete stop a short
By Elie Y. Katz while later. A budget plan must take an array of factors
into consideration. These include how much funding to
National Retail Solutions set aside for purchasing starting-point equipment, such
as shelving, storage space and kitchen items if you plan
business partnership is like a marriage. When to serve hot food, and accounting for potential equipment
good, it can be satisfying, empowering and upgrades and renovations down the line.
show tremendous growth with long-term suc-
A cess. When bad, it can pull the life out of you Complementary skills
and become a legal nightmare that drains your resources.
Budgeting should also include marketing. Key to success
But going into a business alone has many challenges. The is customer retention. Advertising strategies and a website
pressure and stress associated with running a small to with SEM/SEO campaigns to attract web customers and
midsize business can take quite a toll on a sole proprietor keep up with the online competition are essential. Smart
who must balance everything from obtaining startup budgeting must also leave enough money set aside in a
capital and budgeting, to hiring staff and keeping an rainy day fund to offset unpredictable expenses, such
eye on inventory, to planning a marketing campaign and as the need for a new heating or air conditioning unit,
building relationships with the public and distributors. stocking of newly discovered inventory ideas, special
event planning and more.
These stressors can run a merchant ragged and result
in sleepless nights and excessive worrying. Running Working with an experienced business partner can help
a store by yourself can actually reduce physical and avoid budget holes and pitfalls. You may complement one
emotional health and even lead to burnout. That dilutes another. One partner may be an expert in store design
the excitement, self-confidence and happiness that should while the other has more financial acumen. Partners can
result from running a mom-and-pop grocery, c-store or corroborate on the budget plan and provide valuable
retail establishment. feedback that can strengthen the business model. Partners
can split up budget preparation duties. For instance,
More resources, support one partner can work on physical expenses while the
other concentrates on the marketing plan. A partnership
Business owners can prevent becoming overwhelmed by makes for a more enhanced and efficient budget planning
working with a business partner. A partnership, in many process.
ways, can be much stronger than a single owner taking on
the entire load of work. For starters, business partners can A solid partnership is also a great help when making
split duties, review each other's work and bounce ideas off payroll decisions. Two minds are better than one when it
one another. comes to determining how many employees to hire when
it's time for the grand opening, how much to pay them and
Before a business that a retailer has dreamed about can how to sustain them when business is slow.
become a reality, the store owner must obtain startup
capital for everything from designing and implementing
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