Feras Alhlou warns entrepreneurs that handshake partnerships are risky. You need written agreements that spell out ownership, decision-making, and what happens if a partner gets into financial trouble. Hire a lawyer to draft it.
Want to avoid the number one thing that ruins business partnerships? The legal aspect of things. So many issues among partners because they had these informal agreements. Make sure everything is in writing. Don't shake hands and start a venture with big decisions that are all done verbally. Hire an attorney who will help you develop a partnership agreement that determines who is going to call which shot, who's going to own what, what happens if this person is hit with a bust. These partnership agreements will become very handy, especially after the honeymoon period of starting a business.
