How to Pick a Business Partner

Pick a Winning Business Partner

Finding the right business partner can add value to your growing enterprise. The wrong business partner, however, can destroy your vision of wealth before it even starts. If you want to pick the right business partner to join your new business, follow these steps and choose the right person carefully and wisely.

Instructions

1. Pick a business partner with strong opposing skills. Make a list of your strengths and weaknesses, first. Then select a collaborator who is strong in areas where you are weak. If you are a creative innovator, select a partner who is a master of execution. Picking a business associate with complimentary skills will prevent friction when necessary tasks outside of your skill set require expert implementation.

2. Identify similar goals in life and business. The business is an extension of your personal desires and life purpose. Select a business partner that shares your bright vision of the future. Pick a business partner with similar financial, family and revenue goals. Before you enter the business partnership, ask each partner to create a list of their short term and long term goals to assess your work, ambition and lifestyle compatibility.

3. Decide how to disagree respectfully. Disagreements will arise, and how you decide to handle them will determine the length of the partnership. Before beginning any talks of business collaboration, discuss the multiple ways you will handle future arguments and disagreements. Failure to devise a proper “Agree to Disagree Strategy” could result in hurt feelings and a premature ending of the business partnership.

4. Determine your partner’s relevant experience and breadth of valuable business contacts. Before you begin the business partnership, have a lengthy discussion to determine the best ways to use your mutual contacts and business experience to grow the company. A valuable business partner will have a rolodex filled with established relationships to support the business entity. A solid and stable work history is a requirement for any successful business partnership. A permanent collaborator should have similar years of experience in your industry, as well.

5. Check references. Skeletons hiding in the closet of any future business partner could harm your personal and business reputations. Assess the opinions of business leaders and work colleagues first, before entering a business partnership with someone new. Eliminate any business partner with high instances of workplace drama and no proven record of success in your particular business or industry.

Tips & Warnings

• Determine revenue goals and profit splits immediately.

• Have two separate attorneys review your partnership agreements before you sign any contracts.

• Ethics matter. Choose a business partner that you can trust without hesitation.

• Take your time. Choosing the wrong business partner can damage a successful business’ reputation immediately.