Guidelines for Choosing a Business Partner
A business partner can help you bring your small business to new heights, but it is essential to choose the right person. Considering the following will help you avoid mistakes that could negatively impact your long-term business plans.
Consider the Skills You Lack
Your partner should provide skills that complement those you offer. Think about your strengths and weaknesses and consider candidates who can fill roles you find challenging. For example, if you consider yourself a visionary but struggle with accounting, you may want to partner with someone who has a solid financial background.
Consider Your Values
Business partners should share the same values to prevent conflicts that can cause a business to fail. For example, it is necessary to agree about hiring and treating employees, resolving customer problems, spending money, and other essential issues to run a successful business.
Consider the Resources You Need
You may have a profitable business idea but lack the financial resources to move ahead with it. Therefore, you may want to choose a partner willing to offer the financing you need to pursue your goals. You may also want to consider whether your financing partner will have a role in running the business or only have an equity stake.
Consider Your Temperament
Ideally, your partner’s personality will be compatible with yours to ensure your business benefits from the appropriate checks and balances. For example, suppose you enjoy the limelight and have an extroverted personality. In that case, you may want a partner who prefers to work behind the scenes and handle more mundane daily issues.
Consider Your Goals
Before choosing a business partner, it is essential to find candidates who agree with your business goals. Matters partners must agree on include spending money, distributing profits, focusing marketing efforts, and whether or not to expand.
Also, partners must agree on the steps they would take to dissolve or sell the business or choose successors.
Consider Personal Life
It is essential to know that your personal life will not conflict with the demands of starting a business. Likewise, you will want to consider potential partners’ private lives. Individuals who are not distracted by time-consuming personal challenges will ensure that your business gets the attention it deserves and may prevent an antagonistic working relationship that could cause your business to fail.
The decision to take on a business partner involves careful consideration to choose the appropriate person to support your vision and goals.