Starting a business in California is an exciting venture, and it doesn’t have to be a solo journey. You can form a business partnership by teaming up with two or more people. But before proceeding, it’s important to carefully pick your business partners. This step sets a strong foundation for your business. Once the partners are chosen, you’ll need to navigate the initial stages of planning and structuring your business.
This process can help avoid early setbacks that could keep you from succeeding.
Establishing ownership percentages
After selecting your trusted business partners, setting ownership percentages becomes the next step. This crucial decision determines each partner’s contribution and share of the profits. In California, these percentages can be equal or vary, based on each partner’s investment or the value they bring to the business. Ensure that you have transparent discussions about these percentages and that they reflect a consensus among all partners.
Determining your business model and marketing strategy
Once you’ve established ownership percentages, it’s time to define your business model. This involves deciding what you’ll sell, how you’ll make and deliver it and your way of earning revenue. For example, if you want to sell online courses to a select group, it’s crucial to think first about how your course will help your audience.
It’s not just about creating something valuable, though. You must also let people know why it’s valuable through your marketing strategy. Aside from branding matters like a logo and a brand name, this strategy should include elements such as:
- Advertising strategies
- Website plans
- Social media use
As you create these assets, you may need to register trademarks or copyrights to protect your work from unauthorized use, infringement or even theft.
Solidifying the business
Establishing a business partnership involves more than just the initial steps outlined above. There are also practical matters to address, like securing any necessary business licenses or permits for your industry. Other important considerations include how you’ll distribute profits and losses, handle disputes and the procedures for bringing in new partners or letting partners go. These issues can be complex, especially since unexpected challenges can come up when running a business. So, consider seeking a legal professional. They can provide guidance and help ensure your joint venture operates smoothly and follows all laws and regulations.