They say two heads are better than one, and for many entrepreneurs, bringing in a capable partner is a tremendous way to advance their small business. However, finding a great business partner isn’t always easy; and making a mistake in this regard could end up setting your company back significantly. Given those facts, today we’re going to examine how professionals can identify a talented partner who will help their business grow:
Share Your Vision
Contrary to popular belief, business partners don’t have to be best friends to form a working relationship. Yet, they should agree on some basic, elemental factors about their company and its long-term goals. It’s one thing to have an occasional squabble about a minor issue; it’s quite another to hold fundamentally different views about the nature of your industry or business.
Follow the Money
Business partners, by definition, need to both have a financial stake in their company. While you may know certain professionals who you respect or even admire, if they don’t have the capital required to advance your company, then they probably aren’t a great fit as a business partner.
Keep It Out of the Family
Tempting though it might be to go into business with one of your best friends or close relatives, this is almost always a bad idea. Once you begin to mix familial and business relationships, it’s very easy for nerves to fray and for tensions to rise.
Look for a Complementary Character
Rather than seeking out a complimentary partner (i.e. a sycophant), look for a professional with complementary traits to your own. Perhaps you have years of experience working with an industry, but lack some cutting-edge knowledge about new technology or marketing techniques. In this situation, it may be wise to enlist a business partner who understands how to use social media to promote the business. Teaming up with a partner who has the exact same skill set as you do can leave your business exposed if a new challenge presents itself.
Keep it Legal
It should go without saying, but any business partnership you decide to form needs legal backing. As such, make it a point to complete all necessary legal documents to make a partnership official in the eyes of the law. Note, each state has unique specifications for cementing a business partnership. For instance, professionals in Illinois need to fill out form IL 1065 to forge a business partnership.
The Bottom Line
Choosing to bring a business partner on board is a massive decision that could have far-reaching consequences for your company. So make sure that you take care to team up with someone you can trust!
Share
Contributors
