For years now, you have been dreaming of going into business for yourself. Acting as your own boss certainly has its advantages, and you can actually pursue a field that you love.
However, doing all of this by yourself can be tricky and, for some, a financially impossible undertaking.
Working with a business partner means that both of you can apply for necessary loans to start the business. You are sharing the benefits, but you are also both taking the risk. Additionally, having two people as the owners means double the ideas and double the creativity.
When problematic issues arise or new products or services must be developed, you and your partner will address the issues together.
5 Tips For Choose a Perfect Business Partner for Your Business
Of course, picking the right business partner is crucial, and these tips can help you to select the right individual.
1. Start Narrowing Down The List
In a world filled with billions of people, how can you possibly select the one person who will act as an appropriate business partner?
Start with the people who you know.
Trust is a major quality that you need to have in the business partner, and it takes awhile to build that with strangers.
If you currently work in a particular industry, but would like to take it in your own direction, you can start considering people with whom you have been working for several years.
Of course, whether you opt to select a person from a pool of co-workers or a group of family members, this individual needs to share your interests. When the individual has no personal investment in the business, it is sure to flounder.
2. Discussing Your Goals and Strategies
If goals and strategies are not a part of the interview process, you could end up with some major issues later on.
You both must have the same goal.
Ask prospective partners to outline their goals for you. When they match yours, you might have found a business partner.
Before you sign any papers or make any agreements to each other, however, you must discuss the strategy you intend to employ.
For example, let’s say that you wanted to start a tutoring center with a friend. You firmly believe in a Socratic method where students learn to become their own educators; however, your friend believes in a strict series of lectures.
These are two entirely different pedagogical approaches, and you would likely wind up clashing as business partners.
3. The Person’s Financial Track Record
While prying into someone else’s finances might seem a little bit uncomfortable, these are questions that you have to ask.
Taking out a business loan is often a part of getting started.
Let’s say that the other person has terrible credit scores or is in a state of bankruptcy. This person is probably not going to get approved for any sort of loan.
On top of that, you would be taking a major risk. You absolutely do not want to work with a partner who takes his or her own risks with money on a regular basis. This individual could end up causing financial ruin for the company.
Whoever you ask to work with you must have financial goals that are aligned with yours.
4. General Work Ethic
Determining a person’s work ethic can be a little bit difficult, unless you actually work with the individual.
This is one of the reasons why picking a business partner from your job is a great idea. You already know how the individual works and whether he or she is one of the top employees at the job.
Above all else, you must look for trust and reliability.
If you do not trust the person with even the simplest of issues, you definitely cannot leave an entire business in his or her hands. Business partners who you select also must be reliable.
You need to know that this person is going to show up for the job every day and handle a fair share of the responsibilities. Some people jump at the prospect of a new business transaction.
They want to enjoy the benefits, but they do not want to put in any of the work to make those benefits actually come into fruition.
5. Long-Term Relationships
Right now, you might have great business chemistry with someone who recently started working at your company.
You think this person might be the right one to ask to be your business partner.
Unless you have extremely strong intuition and are generally able to judge someone’s true character in a short period of time, you would be better-off waiting for awhile.
When you are first getting to know someone, you might focus on that person’s positive qualities much more so than the negative ones. You also really do not know a lot about the person at this point and what his or her motivations might be.
Working with someone who you have known for quite some time now is really the smarter idea. Otherwise, you could be setting your business up for failure. The other person might try to take advantage of you or leave the business before you are even able to really get started.
Not only would this potentially crush your dreams, but it could leave you in a financial mess.
As you are going through all of the options for business partners, you definitely need to be smart and careful about your selections.
If anything sounds suspicious to you, do not ask that person to be your partner.
For example, a candidate might want to keep his or her name off the business loan.
This is a major red flag.
If a problem happens with a loan in the future, then you would be stuck paying for all of it.
Although you must take caution, you should not be afraid of every possible business partner that comes your way. When you open yourself up to the possibilities,