When you’re starting a business, one of the most important decisions you’ll make is choosing your business partner. This person will be instrumental in helping your business grow, so it’s crucial to find someone who is compatible with your goals and vision. In this guide, you’ll discover the key things you need to look for when choosing a business partner. You’ll also gain some useful tips on how to make the partnership work well for both of you. So whether you’re just getting started or are looking for a new partner, read on for helpful advice!
Running your own business is a dream for many people. But depending on the type of business you want to run, you’ll often realize it will work even better if you have a business partner. This might be because the business needs some additional skills that you don’t have. Or it could be that the workload is too much for one person. In any case, finding the right business partner is essential to your success.
When it comes to finding the right business partner, there are a few key things you should look for.
Trust
The first and most important is trust. You need to be able to trust that your business partner will do their part, and also trust their decisions. If you don’t have faith in them, then it’s unlikely that the business will be successful. So how do you know whether you can trust a prospective business partner before you bring them on board? Start by getting to know them and their track record. Have a few conversations, do some research and try to get an understanding of who they are and how they work. Get references from a number of different people they have previously worked with or for. Many people hire a private investigator to check everything adds up with the individual too – just look for a private investigator near me for that extra peace of mind.
Complementary skills
The second thing to look for is complementary skills. It’s important that your business partner has different skills and experiences than you, so that you can both bring something different to the table. This is especially true if your business needs certain skillsets to be successful. For example, if you’re setting up a web design business, make sure your partner has experience with coding and digital marketing. Having different skillsets will help you cover all the bases when it comes to running the business. You’ll also need to look out for someone with leadership qualities if you’re bringing them in at partner level. You might employ staff and teams of people in the future, or you might need someone who is excellent at client relationships or closing business deals.
Experience
The next thing to look for is experience. You’ll want someone who knows the industry inside out, as well as being experienced in business. Having a partner who has some years of experience under their belt can be invaluable. They should also have experience in the type of business you’re setting up, so that they understand the challenges and opportunities that come with it. If you’re a young start-up and willing to think outside the box a little, you don’t necessarily need someone who has years of experience. But you do need to find someone who can demonstrate their potential. Perhaps they’ve been instrumental in exciting projects through their studies or in a different field.
Compatibility
You’ll also need to make sure that the two of you are compatible. You need to be able to work together and find ways in which you can complement each other. This means having similar goals, values, and of course the same vision for the business. If you don’t think you could get along in the long-term, then it’s probably not a good idea to team up. Try and have a few conversations before you make any decisions, and if possible a few meetings in person to make sure the two of you are a good fit. It’s difficult to know if you complement each other without actually getting down to work together. You could consider bringing the individual on to work on a project together that relates to one aspect of the business. If that goes well, it’s a good sign you’ll be able to work together longer term.
Financial Synergy
You’ll need to look out for the financials. Make sure that both of you are on the same page when it comes to potential investments and returns. You need to be confident that you can both afford the investment and that it will be beneficial for the business in the long run. Do make sure that the financial investment is proportional – it’s not fair to bring someone on board as a business partner if they’re investing much less than you. Make sure you both have a clear understanding of the financials, and that everything is transparent. You’ll also want to be sure that the individual has access to the funds they say they can invest. Or if you’re going down the loan or angel investor route, you’ll need to both agree on the kind of debt and deals you’re willing to take on.
Legal Robustness
Finally, make sure to check with a legal expert and ensure that everything is set up and agreed upon legally. You’ll need to create a partnership agreement that outlines the ways in which you’re working together and any other points of agreement. This should include clauses about decision-making, roles and responsibilities, profit sharing, etc. It’s essential that you both understand the terms of the agreement and are in agreement. It’s also important to ensure that you have the correct insurance policies in place, as well as any licenses and permits you need to operate the business legally.