Finding the Right Business Partner

A partnership is a long-term relationship between two or more people, so approach it like you would any other relationship.Your business is your creation and you will have to nurture it to help it grow. You need a partner that will approach your business with the same level of excitement and dedication that you have, but who also shares the same business philosophies. If you decide to give partnership a try, you will be able to share responsibility and commitment with that partner and benefit from his or her hard work, capital contribution, and unique skills that should compliment your own. There is no way to guarantee a potential partnership will work; however, there are a few steps you should take that will help you avoid having serious problems down the road.

Be Objective
When evaluating potential partners, disregard emotional ties or friendship. Create a set of criteria you are looking for and judge how well a potential partner measures up to it. Really think about the skills you need in a partner, the personality traits you can and cannot work with, and look for answers to those types of questions beforehand.

Don’t Clone Yourself
Your and your partner should share a sense of vision, entrepreneurial spirit, and values but not have overlapping skills. Big problem arise when two people who are very much alike go into business together. If you have great interpersonal skills but poor business finance skills, consider a partner who understands business accounting.

Be Patient, Take your Time
Don’t rush the process of finding a partner; it can take months to thoroughly understand and get to know a person. Look for someone who doesn’t have a lot of personal baggage, and choose someone who is financially stable. Starting your company a few months later than planned will be worth it if you are able to make a better choice of partner.

Share Financial Commitment
Do not go into a partnership with someone who will not put money, or something of equivalent financial value, into your deal. An equal capital commitment lessens the chances of your partner suddenly walking away from your business, leaving you with all of the responsibilities.

Institute Legal Safeguards
Whatever agreement you decide upon, put it in writing in a formal partnership agreement. An attorney can help you build information into this an agreement, such as how work will be divided, what happens if more start-up money is needed, and how decisions will be reached. Having noncompete agreements in place is another good safeguard. Look for a partner without a lot of personal baggage.

Do Background Checks
Require all potential partners to submit a background check that will reveal any past dishonesty, substance abuse problems, or criminal violations before you go into business together. Each should also provide a list of professional and personal references the you can talk to before entering into any agreement.

Assign Roles and Stick to Them
When choosing a business partner, clearly define your roles and the function each of you will fulfill in the company. Stick to what you know, and let your partners take charge of what they know and are good at.

Most importantly, choose someone who is as excited and driven as you are to make your business a success.

For more information, check out these links:
http://www.inc.com/guides/leadership_strat/23041.html
http://www.wbsonline.com/resources/how-to-choose-a-business-partner/