Choosing the Right Business Partner(s)

Starting a business with a partner is a lot like marriage.  You both go into it with a lot of passion and optimism, however without commitment and a strong understanding of each other, it will eventually fall apart.  Like marriage, a partnership is never fully equal and it takes the right kind of attitude and effort to maintain.  There are a lot of benefits to starting a business with one or more partners, but there are also a lot of things that can potentially go wrong. Unnecessary complications can arise when a business relationship goes sour, the only way to mitigate the risk is by making sure you good chemistry. When looking for a business partner there are a few key qualities that increase the likelihood of the venture being a success.

Trust

You need a business partner you can trust completely. This stretches further than just trusting them with handling cash. It means you need to be able to trust them to always act with the business's interests in mind. It means they are true to their word and will follow through on what they say. You don’t want someone who is carefree with expenses or doesn’t want to commit the time and hours of hard work to making the venture a success. The characteristic you should look for is integrity, both in work and in life. This way you'll know that your business is safe with your partner(s).

A Shared Vision

Having the same aim and goals relating to the business direction is another important issue to determine before entering into an agreement. Do you both have the same vision for the direction of the company?  This answer is essential because if down the line there is a dispute, different missions can cause turbulence and slow down the growth. At all times you all need to be focusing on how to get to where you want to go, and while disagreements about how to get there are fine, but the partners' views about the business's goals must be aligned. 

Added Value

Ask yourself, what is this other person bringing to the table? If it is only cash then there may be a problem, they will be occupied with wanting to see a return which may mean compromising on decisions you want to make. The best way for a partner to add value is through the knowledge and expertise they have. A strong track record indicates increased likelihood of success and adds value to the relationship of working together. Additionally, if they have a strong contact network, you can see value being added in potentially new clients or distribution channels being opened up.  Most people’s main reason for entering into an agreement with a business partner is for capital, but if that is the only thing they are offering you, you should be careful and continue to look for a more complete package.

While there are many different factors that should be considered when looking for a business partner, the value they can add and the extra person putting the work in can really boost growth. However, the business relationships that do turn sour will often negatively affect the business. Therefore it is critical to understand the issues that could arise beforehand and choose your business partner(s) carefully.