7 Tips to Choose the Right Business Partner
A lot of entrepreneurs say that a business partnership is like a marriage. And they are right. If you choose the wrong person to work with, the startup will eventually turn into a lifetime of failures, losses, and regrets. The truth is that starting a business with a former co-worker, a close friend, your significant other, or your family member is not going to be a walk in the park.
You have to choose the best partner if you wish to start a profitable business that will grow over time. Here is how you can choose the right business partner.
1. Choose Someone who has the Skills and Experience for the Business
You really don’t have all the skills to run a successful business on your own. For example, if you’re a good business planner with insufficient marketing skills, you may have to find someone with exponential marketing experience and interpersonal skills. So, if you’ve identified a partner who has experience and skills that compliment yours, he or she is the best person to work with. By choosing a partner who has the best skills, you will be able to plan, start, and grow your business.
2. Define the Roles and Responsibilities of Each Partner
The number one reason why many partnerships don’t go too far is the failure to optimize interests, roles, and responsibilities. When partners come together, they almost always have different interests despite their skill and levels of experiences. So, unless you clearly define the goal of each partner in the business, they may not be willing to consider aligning your interests with theirs, and that results in a poor business.
3. Remember, Verbal Agreements are Obsolete
Obviously, you are more likely to start a business with someone you’ve known for a long time. But that doesn’t mean you should make business agreements in spoken words. The thing you have to do is find a partner that will be more than willing to sign a partnership agreement with you. The agreement should outline the structure of the startup, capital contribution, decision-making strategies, conflict resolutions, and partnership dissolution. A written agreement will also make it easy for you to deal with difficulties that might arise along the way.
4. Find a Partner who Shares the same Interests as You
A partner who complements you is the best individual to do business with, especially because they have interests that are similar to yours. Of course, it might take some time to figure out the best person. At the end of the day, though, your efforts should pay off.
5. Both of You Must be willing to speak the same Language
One of the most challenging yet interesting aspects of the partnership is the language the duo speak. If you are going to sign a startup pact with someone, make sure that both of you are willing to speak the same language. It is best to make sure that you and your partner can speak the same language and remain on the same page throughout the partnership period.
6. Talk about Investments and Returns
Everyone must contribute money in a partnership business. But it is important to know exactly how much. Again, how much each partner is likely to reap from the enterprise is a key factor to consider. As such, talk to your partner, agree on the terms, table your business issues, and see if you can start doing business together.
7. Find Someone who Values Communication
Communication is an important aspect of any and every business. Look for a partner who is open and honest about everything. Because communication is the key ingredient for a thriving business, make it your very first priority when looking for a partner.
