8 Tips on Choosing the Right Business Partner
Dreams are what gives people the impetus to work harder and improve themselves.
Among most young people, the dreams involve starting a business or a venture that will provide some challenge as well as a result in financial rewards. However, due to their young age, they face major constraints regarding finances and personal experiences to make such breakthroughs possible on their own. One way that you can make up for the lack of funds and experience is to team up with another person interested in a similar business so that you can pool your resources. This solution, however, comes with a possibility of choosing a partner who can either help you grow your business or make it sink further. It is therefore very important to take steps aimed at ensuring that the person you choose as a business partner is the right person for that role.
Points to consider when choosing a partner:
It is important to have a vision before venturing into any business. The vision provides a roadmap of what you intend to do and where you expect your business to be after a specified period. It is through the vision that you can assess whether indeed you need a business partner. If indeed there is a need for a partner, then the vision makes it easier to attract people who are like ideas rather than lumping together people with differing plans on how to start and run a business.
The vision should be supported by clear, reasonable, and achievable goals. By having clear goals, it is easier to sort through the many individuals who are interested in partnering with you and get the people who are comfortable with the size of the goals and the duration set for achieving them.
Seek to understand the person you want to be your business partner more than the general knowledge on his or her area of expertise. Knowing what the person does well alone is not enough to decide they can be good partners because they may have a personality that is not compatible with the business you are setting up. Knowing their hobbies, fears, aspirations, and frustrations are important in forecasting how your partnership will fare.
Evaluate the value this partnership will add to the business. Choose somebody that compliments your strengths rather that one to discredit every contribution you make. It will promote stability in the business and improve productivity.
Partner or consultant?
Determine if the services of the prospective partner are needed part-time of full-time. If partnering full time will be very expensive for the business because you can’t hire the person, it is possible to have this person as a consultant whenever needed rather that incur the heavy costs of hiring them or partnering.
Find out if the potential partner is a team-player. It is easier if you have worked with the person before in a non-profit venture. However, you can find out by working with the person for some time is a different set up to help you decide how suitable the person is to work with in your business.
Roles and responsibilities
Define the roles and responsibilities of both parties to avoid confusion where one party encroaches on the roles of the other or does nothing at all. Confusion of roles and responsibilities will breed anger and frustration which will harm the business in the long-run.
It forms that backbone of every business. Agree on upfront on how the funds raised are to be used and the criteria for distributing the profits from the business.
It is essential to do all the above because a business can easily be destroyed by partnering with the wrong person. It is necessary to remain very objective when choosing a business partner because you will spend more time with him or her than with your spouse.