For a food truck business that is formed as a partnership learning how to nurture these business relationships is critical to the food truck businesses growth.
Unfortunately, the fact is that over half of all food truck business partnerships fail. Many of those failures could have been avoided with smart planning upfront. To increase the odds that your food truck partnership works out, your best move is to familiarize yourself with the typical reasons for failure and what to do to make sure it doesn’t happen to you.
Here are 10 of the most common partnership mistakes:
- Not having a signed partnership agreement.
- Not having an attorney assist with drawing up the agreement.
- Not including a way out.
- Not using your individual strengths.
- Not forming a limited partnership.
- Not considering the liability issues.
- Rushing in.
- Not adhering to state requirements and regulations.
- Choosing the wrong partner.
- Not adequately capitalizing the partnership.
3 Quick Tips To Keep Your Partnership Solvent
You need to be committed to these relationships so doubt doesn’t creep in. Make sure everyone is clear on timelines, expectations, deliverables, communication preferences, collaboration methods and other issues before you even move forward.
Don’t over promise and under-deliver; that can be a sure way to undermine a partnership. Show attention to detail, even down to spell-checking documents. You want your food truck organization to build a good reputation, so demonstrate your professionalism in all aspects of the partnership.
These relationships depend on trust and commitment, so there’s no place for apathy. Watch out for self-delusion and keep your eyes open; it’s easy to pretend everything’s going well when it’s not. Be up front about everything, even problems and mistakes. Integrity and honest communication will go a long way toward helping your alliances work.
If you are interested in forming a partnership for your food truck business, check out our friends at legalguru.com, not only can they answer your legal questions, but they have a full list of forms for your use.