Research the prospective partner:
• How long has the company or organization been in operation?
- Are they in good standing within their community?
- Check with local government consumer offices, city attorney offices and state
attorney generals offices.
• Ask for appropriate license/regulatory numbers.
- Are they current?
- Have any complaints been filed against them? Do they have a history of
problems, such as bankruptcy?
- Do they hold the necessary licenses in the jurisdiction(s) where business is
planned?
• Review the annual report.
- Discuss any concerns with legal and financial advisors.
- Research all public financial records.
• Ask for references. These may include:
- Clients.
- State and local elected officials.
- Community business leaders. (The local chamber of commerce is a good place to
start.)
Prepare a joint business plan:
• Develop a plan that clearly spells out the roles and responsibilities of each
partner.
• Create a financial statement that details the resources expected from each
partner.
• Be sure to know the source of all financial capital (including whether funds
are secured or unsecured).
Review business and financial plans:
• Ask a legal advisor to review and comment on the plan.
• Ask an accountant to review the financial statements and other key documents.