# 10 Key Elements to Include in Your Business Partnership Contract
When entering into a business partnership, careful planning is key. Whether your new partner is a friend or colleague, it’s important to establish a thorough partnership contract to anticipate and mitigate any potential future issues.
Here are the 10 essential elements recommended by business leaders from [Young Entrepreneur Council](https://yec.co/) that should be included in your partnership contract:
## 1. Voting Rights Structure
– Clearly define the voting rights structure for management decisions to avoid conflict.
– Establish responsibilities and decision-making authority for each partner.
## 2. Clear Roles, Responsibilities, and Contributions
– Outline each partner’s roles, responsibilities, and contributions to prevent miscommunication and conflicts.
## 3. Dispute Resolution Clause
– Specify a dispute resolution mechanism to save time and prevent costly legal proceedings.
## 4. Crisis Management Plan
– Include a crisis management plan in the contract to prepare for unforeseen challenges and crises.
## 5. Profits Distribution
– Clearly state how profits will be split, whether proportional to revenue contribution or evenly distributed.
## 6. List of Shared Resources
– Agree on a list of shared resources to avoid confusion and potential conflicts.
## 7. Non-Compete Clause
– Protect your business by including a non-compete clause to prevent partners from using company secrets for competitive endeavors.
## 8. Metrics for Goal Measurement
– Define expected goals and metrics to measure performance and ensure mutual understanding.
## 9. Succession Plan
– Address who will take over in case of unexpected scenarios, ensuring clarity in the partnership.
## 10. Exit Strategy
– Establish an exit strategy to handle assets and debts in the event of partnership dissolution.
Including these key elements in your business partnership contract provides a strong foundation for a successful and harmonious partnership. Planning ahead and establishing clear terms will help mitigate potential conflicts and ensure a smooth working relationship.
