August 19, 2021

4 things to consider when looking for a business partner

Imagine you are looking for a partner in life. You’re not just looking to marry, but you want someone who will be your best friend and partner in crime for the rest of your days. Wouldn’t it make sense then that when searching for a business partner, you would want the same? Unfortunately, this is not always the case. Many companies search blindly or settle on partners they don’t fully understand because they lack information about how to find a good match for their needs.

A business partnership, like marriage, is not something to rush or enter without consideration. A good partnership requires:

  • A shared vision and goal
  • Mutual hard work
  • Open communication
  • Mutual respect
  • A balance of power
  • Effective conflict resolution

When looking for a new business partner, it’s important to know what some of the key aspects are of what makes a good business partner in order to avoid disappointment.

Critical Skills & Experience

Many entrepreneurs have a specific set of skills that they excel at, but in order to be successful running their business and planning for the future, those are not always enough. Investing time into finding someone with complementary skill sets can lead to greater success on all fronts: starting your new venture is easier when you don’t need an expert or advisor from day one; fundraising becomes more streamlined; scaling up will happen quicker because there’s no waiting around while other people do things that you’re better suited at doing yourself.

No matter how good you are at customer relations, eventually someone needs to be able to take care of the operational aspects. It’s easy for one person or company in a partnership relationship to specialise in their skill set while letting other areas fall by the wayside and cause harm down the road. A business partner with complimentary skill sets can help make sure that doesn’t happen and provide more opportunities for growth as well.

Business partners should offer to bring more than just their money and risk. They should provide your business with the resources and credibility needed to succeed. Individuals who have industry connections, client lists or credentials that can add value are good choices for business partners.

Values, Entrepreneurial Spirit & Business Vision

Partnerships are a two-way street. While it is true that your partner will have an important say in where you end up, the success of any partnership should be mutually beneficial. A strong foundation for communication and values alignment can increase a business’s long term viability by ensuring both partners stay motivated to accomplish mutual goals with minimal hindrance on either side.

Minimise The Personal Intruding On The Professional

It’s true that people may face challenges in their lives, but your business partner should be able to offer focus and energy. If they are not up for the challenge of running a small business then it is better if you find somebody else who can devote themselves 100%. Finding someone with these qualities will ensure success.

Personal & Business Ethics

A partnership should be a mutual and trusting relationship. A good partner is someone who values honesty, practices personal ethics that align with your business code of conduct, and does not get you involved in legal matters that could besmirch both the individual’s reputation as well as yours for being associated.

If partners cannot respect one another or themselves on professional levels, it can cause problems when working together to achieve goals no matter how small they may seem at first glance. It will also reflect poorly upon clients if their abilities to work collaboratively are hindered by internal disputes within team memberships such as partnerships due to lack of professionalism among personnel

When it comes to partnerships, there can be a lot of legal factors at play. Especially if you and your partner are not on the same page about what is agreed upon for that partnership or any agreements made before dissolving said agreement. Forming a partnership is easy but getting out can be tricky. Joint assets, joint client base and joint finances should be regulated from the start. Having evidence, as well as being prepared in advance with advice from an expert will help make breaking up easier when necessary – removing all potential risks involved with such a situation beforehand may save some grief down the line.

If you’re looking to get into a partnership, speak with us today for business advice.

Filed Under: Business Advisory, Management and Strategy

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