When you have decided to enter into a business relationship there are several things that need to be considered when selecting a business partner. It is important to you, as well as your business that you can be confident in the decision and can trust the other person. If you do not consider the various factors that can potentially go wrong in a business relationship you may find the situation goes sour quickly. To mitigate the risk, you need to ensure both parties share the same vision and viewpoint as well as feel comfortable with working together.
Trust
A suitable business partner needs to be someone that can be trusted completely. This means more than being able to be trusted to handle cash and not to steal. It means the other party can always be trusted to act with the business interests in mind at all times. You don’t want a partner who sees the company credit card as an addition to their personal wallet, or someone who does not want to commit the time and hours of work that will need to be taken for the company to be successful. A business partner should be someone who has integrity; a strong moral compass allowing your business to be in a pair of safe hands.
Sharing the Same Vision and Goals
Furthermore, a business partner should share the same set of goals relating to the business as you do. This is essential when selecting a business partner, as disputes often arise when either party disagree with the direction the company is heading in. Both parties should always be working towards the companies goals. Whilst disagreements about how to best achieve those goals are fine, you don’t want to be led off the track to a place where serious issues arise.
Added Value
Before entering into a business partnership, ask yourself, “what does this other party bring to the table?” If cash is the only item, then they may not be the most ideal person for you to partner with. Often partners after investing money into the company want to see a fast return, which often means compromising on the long term goal to achieve this return faster. However, the best qualities that will add value to the relationship are experience and knowledge. A strong track record indicates a more likely chance of long term success. Also if this person has a strong contact network, you can see value being added in potential new clients or distribution channels. Most people look for a business partner as they want much needed capital, but if that is the only thing you are getting out of the relationship you should potentially look for a better-rounded candidate.
Overall a lot of different circumstances should be taken into account when selecting your business partner. The most important thing is the value they are adding. With an extra professional putting in the work you should see growth much faster, but you should always be careful to ensure both parties are in it for the right reasons before entering into an agreement.
