Are you looking for a business partner? Check these tips
When you start your business, you pursue a great idea and you are deeply committed to its success. However, no matter how broad your skill set is, chances are you won’t be an expert in every aspect of running a business.
This is very important if you plan to scale your company because there are only 24 hours in a day and fulfilling all the roles will be almost impossible for you. For that reason, finding a partner can be key to boosting your business.
How to choose business partners?
Maybe you want to follow the stories of successful businesses that started as a venture between two or more partners and you’re thinking of doing business with your brother, an old roommate, a friend, a former co-worker, or a brilliant guy you just met. But first, you should think about: what makes a good business partner? What should you look for in that person?
Selecting a business partner is a very important decision because you are trusting someone else with your financial investments, goals, time, and future. This implies that choosing a partner goes beyond finding a person who has earned your trust. It is important to select someone who can stay in the long-term following the objectives, but who is also a loyal person and shares the vision with which you started the venture.
What types of partners are there?
Commonly, businessmen look for a capitalist partner or an expert partner. Both profiles contribute to the business differently:
– Equity partner: A capitalist partner joins the company as a person who provides the resources the business needs to grow. Most commonly, this type of partner provides cash, to have an economic return as an investment.
Companies may know the growth path, but without the necessary capital, they cannot grow. That is why they require this type of partner. Not all capitalist partners need to contribute cash, since they can participate with other types of assets such as a piece of land or some type of machinery.
– Expert partners: These are those who collaborate by providing knowledge on specific topics since they have extensive experience in a sector or industry and can even help close new deals with some key contacts. Sometimes, having this type of partner makes a company take off since there are industries so closed that they only admit certain people based on their careers and positions.
6 things to consider when choosing business partners:
Before starting, decide on a formula to determine the value of the company. So that if a partner decides to leave, you can avoid disagreements by clearly establishing the value that corresponds to him. After that consider:
1. Find a partner who shares your values, entrepreneurial spirit, and vision. Of all the things to look for in a partner, this is probably the most important. You must be able to communicate with them effectively since it is required that together you make good decisions, and establish objectives. Or if they need to make a decision, be sure that it is for the best of the company. If you include in your business someone with whom you cannot reach agreements, success will be more difficult.
2. Look for someone who offers resources and credibility to your business. It’s great to have a business partner offering financial resources, but there are other contributions a partner can make to the business that can be just as valuable. Consider the value of bringing on a partner who has built a business network, has key industry connections or a list of good clients or even has specific credentials and experience. It is common to overlook these advantages that can also increase the growth of your business and improve the chances of success.
3. Choose a partner who practices good personal and business ethics. It is recommended to only establish partnerships with someone you can trust. Look for partners who practice ethics in their lives and value honesty.
A bad partner can put your company at risk, take your ideas or take your clients to start their own business, and can even engage in dishonest practices and break laws that could cause legal problems.
So don’t hesitate to check the background of your potential partner. You can go all the way to background check services, or you can do some research yourself. Nuwber would be useful for the latter.
4. Choose your friends or family well. If the person you choose as your partner is a good friend or family member, make sure their goals, values, and responsibilities align with your own.
Don’t assume that because you get along with this friend or have a lot of love and respect for your family they will be a good partner. Take a look at your personal life and how stable it is, as personal problems are difficult and can easily complicate your professional life. If you have any doubts, don’t do it.
5. Look for them to complement you in knowledge: You always have to look for someone who has skills that you lack. In this way, where your expertise is not enough, your partner will fill that need.
6. Balanced responsibilities. Both parties must agree in advance on what their responsibilities in the company are and how to fulfill them. If one person keeps trying to do everything or ends up contributing too little, then the company is not well balanced and problems could arise. Be open with each other and discuss all the key points right from the start so that there’s nothing unexpected.
These are just some aspects to take into account when choosing the ideal partner for your company. Along the way you can add more tools that help you make a choice among the candidates.
Just as a company can grow greatly with a partner, it can also be severely damaged by a poor choice and never reach its full potential. When you do your due diligence, put emotions aside and make sure everything aligns and is in sync, then your business will grow.
Are you looking for a business partner? Check these tips