Choosing the right business partner

Whether you’re starting your very first business or are a serial entrepreneur, choosing the right business partner is probably the most important decision you’ll make. Although you’ll never find perfection, it is important that you understand exactly how the relationship will work. Things rarely plan out the way you intend throughout the life-time of a company, however, considering some of these points should allow you to make a more informed decision.

1) Do you really need a partner?

Starting a business or organization can be a daunting prospect, especially for those who have not done it before. Much of the time we may consider a business partner as a support mechanism to talk through problems, challenges, ideas and strategies. This is a fundamental requirement for any partner in life, however; do you need a business partner or a mentor? It may be more suitable to have someone to correspond with on a weekly/monthly basis.

Know exactly what you need from your potential partner. As the old saying goes ‘If you don’t ask, you don’t get’. Be specific and explain how you see someone else working along side you, perhaps it’s for their experiences, skills, funding or marketing knowledge.

There’s nothing wrong with being at the helm alone, providing you have support in the way of a mentor or advisor.

2) Filling in the blanks

Identify your areas of strength and weakness, I would suggest writing these down on two pieces of paper. You need somebody who’s going to compensate for your weaknesses. For example, if your weakness is networking, sales, or face-to-face interaction, then you’d better partner up with someone who has those abilities. It’s fine to have some areas that are not compensated for but having the same strengths and weaknesses could mean you end up avoiding critical activities.

3) Vision, ethics and morals

Sharing the same vision is very important; does your potential partner see the purpose of your business as you do? Do you agree on where the business is headed and the culture you wish to create within the organisation?

Another important decision is your own ethics and morals. How do you stand on customer service, delivering promises and how suppliers are treated, for example?

4) Commitment

In my opinion, this is one of the most important aspects. Does this person have the same level of commitment that you do? Are they prepared to do everything it takes to make your business work? Excitement and good intentions will flow at the start of new relationships but be honest with each other. How much time can you commit? Do they have a family, other business interests, distractions or other issues? Whilst most people have other commitments in their lives, does your future business partner have the same work ethic and drive as you?

5) Financial situation

Most people set up their first business whilst still relying on an income from another source. This is sensible and allows anybody to make the transition between employee to business owner.

What’s your future partner’s financial situation? Are they heavily in debt or do they have savings? How much are you prepared to invest into the new business and will they match you? What’s their personal overhead each month and how much are you going to pay yourselves?

6) Get it in writing

It’s so important to have everything in writing, often when this is done it allows you to trash out any points which are unclear. There should be some caveats within the agreement, which allows you to part company further down the line things don’t work out. Not every relationship lasts but this needn’t destroy the business.

Think carefully about choosing a business partner, it’s a marriage of sorts. Can you rely on this person completely? Do you have ultimate trust? Think through you decision wisely and then jump in with joy and ambition!