3 Insights: How to Find a Business Partner
Traci DeForge, business strategist, shares valuable insights on how to find the perfect business partner to improve your business and your life.
I am an entrepreneur. I’ve started, run, operated and consulted hundreds of businesses some solo, some with some successful partnerships. There are many advantages to having a business partner vs being a solo entrepreneur. One of the most valuable in my experience is having a built in accountability partner. The commitment it takes in time, resources and energy to run a business is not for the faint of heart. There are days when the possible seems impossible. The reality of being accountable to someone else on these days might literally be the one thing keeping you from throwing in the towel. This is where having a business partner can make you a better business owner.
Where do most people find a business partner? Successful duos like Jennifer Hyman and Jennifer Fleiss, co-founders of Rent the Runway and Katie Rodan and Kathy Fields, co-founders of Proactiv and Rodan & Fields met when they were in post graduate school. Carly Zakin and Danielle Weisberg, Co-Founders of theSkimm met while they were working at NBC. They all have one thing in common. They identified a niche it the market and had already established enough trust in each other to take a leap into a legal partnership.
What happens if you don’t know the person but you find common ground in someone you feel would make a great partnership?
I believe in finding the person that is the “Ying to your Yang” and optimizing each other’s strengths to form powerful professional bonds which can lead to lifelong friendships and lucrative business success. John D. Rockefeller’s reflects this theory in his famous words: “A friendship founded on business is a good deal better than a business founded on friendship.” I started one company where the success of it was contingent on me being a creative paint instructor. I don’t paint. I met an artist whose talents were the exact opposite but dovetailed perfectly with mine and we built a business together. This partnership was successful because we entered into it with our eyes wide open. We created clearly defined roles and respected those roles without exception.
My most recent entrepreneurial endeavor, Produce Your Podcast would’ve required me to edit and produce broadcast quality audio. It’s safe to say that’s not on my resume either. I was able to launch and grow this business by relying on a strong professional relationship turned friendship which spans over 25 years. Our key to success is to keep the friendship the valued commodity We both understood if the friendship gets compromised they forecast of the business dims considerably.
I’ve walked through many variations of business relationships. Here are my top tips for maintaining the personal and profitable side of a partnership.
- Pay attention to pink flags. There will be signs from the beginning if the relationship is not right for you. We often ignore these signs and think situations will change or get better. Things often end like the way they begin. If things start off feeling sketchy, imbalanced or unethical it is likely that will come to light in the partnership in a way that is not beneficial for you.
- Equity vs Equitable If you enter into an agreement for sweat equity and things don’t work out…be advised…when you stop sweating so will the equity. Start out on an equal playing field from the beginning or be compensated for the work you are doing and then enter into a partnership when each partner is equally invested.
- Date before you get married. It can be easier to get married then divorced. Consider this same mentality when entering into a legal business partnership. Treat the agreement like you would a pre-nup. Establish the exit strategy when things are going well. If you are not ready for that level of a legal commitment then try different options. I’ve worked successfully with collaborators on a revenue share agreement. Both parties have skin in the game but can leave the sandbox at any time legally unscathed.
You can’t do it alone. It takes a village. Ask for help. All three are common pieces of advice dispensed when you’re starting a company. Bringing in someone whose strengths fill gaps in areas where you’re weak can accelerate the growth of your new business. It is also provides an alternate perspective at times when being a solo-preneur can be limiting due to working in isolation and yes, just plain stubbornness.
About the author
Traci DeForge, Business Development Strategist, has a proven track record of success in launching new businesses and directing operations for successful businesses throughout North America. Her consulting expertise generates National awards for her clients. She works with leaders and intact teams at companies such as Hilton, Marriott, British Airways and Google. Clients include Microsoft and Weight Watchers International. Traci facilitates workshops and classes in cities all across the country including Stanford University, has been featured on CNN and is a contributor for Inc.com. Traci recently expanded her entrepreneurial portfolio with the launch of Produce Your Podcast, a full service company which produces broadcast quality podcasts. Her passion for creativity shows up by producing and hosting her Journey to There podcast. The show provides inspiration and tactile tips on how to navigate the intersection between personal and business growth.
