It is said that business partnerships are great and would do wonders to propel your business forward, as long as the partners are able to work together. Many small business owners think about taking on a business partners when they feel the need for some help to carry out their businesses goals. Before you look for a partner for your business, you need to answer these questions.
- Do I really need a business partner at this point?
- What would he/she contribute to the business?
- What business tactics, networking or strategies is he/she bringing to the table that will benefit the business?
- Would I partner with him/her if I had more than sufficient liquid funds?
- What is his/her best attribute and do they have operational integrity and ethics?
- How will he/she react to the partnership/shareholder agreement?
- If he/she has characteristics that I don’t like, will I still tolerate him/her for the sake of the business expansion?
Add more to your list and ponder over them. If you can answer them truthfully, then partnering will work wonders and will be a successful.
5 Characteristics of a Good Business Partner
It is a thought provoking process and a challenging task when you decide to make your business a partnership venture. Getting the right person as your partner is the key to success. Let’s take a look at the basic qualities of a good business partner.
- Credibility – The credibility of your partner plays a vital role in the success of the business. This element should be an inherent factor of your partner and they should deliver what they promise. This is a factor that cannot be measured by their qualifications, therefore do a good background check before taking them on as your partner.
- Must establish good working rapport – For a partnership business to work, it is not necessary to know the personal likes and dislikes of a person. He/she should be comfortable with you at the professional front. The vision and mission of the two of you should match.
- Must be capable of making the right decision at right time – Remember, in a partnership business, you should allow the person with expertise in the particular area to make the decision, if ever a need arises in that area. Your ego should not play a part in making the decision. Your partner should be a good and quick decision maker in case a need arises.
- Education and background matters – Remember that it is always better to have a partner who is educated, willing update his knowledge and understands the ways of doing the business. It is a fact that you cannot judge a partner on the basis of his degrees. However, if he comes from a business background and has a passion to learn about your business, then they may be a good fit. In business, what matters is the basic common sense to understand things and practical knowledge.
- Look out for a person who is open to changes – Your business partner should keep himself updated about current issues of your industry. He/she should be willing to implement new measures that will help in the advancement of business in this competitive market.
How to Choose Your Business Partner
Remember that business partnership is a long-term agreement between two or more people with a common vision, values, entrepreneurial qualities and should share the same philosophies. Here is a list which will help you choose your business partner.
- Lookout for someone who can bring skills and experience to your business– Understand that you are not a master of all things. So seek a partner who has the skill sets to support and complement your own.
- Choose a partner who can offer resources and credibility to your business – Here we are not talking about a partner with more than an ample amount of cash. There are other resources such as business network, client list, industry connections, expertise and his credentials that can increase the value of your business. His credibility can also help in achieving long-term success.
- Your partner should lack personal baggage – One of the reasons that you decided to go into partnership is because you wanted someone to shoulder 50% of the business responsibility. It is an unhidden fact that running a small business requires focus, time and loads of energy. If your partner is facing a personal crisis, understand that you will be carrying the weight of your business.
- He/She should be financially stable- Money and time management skills are critical to all small business owners. When choosing your business partner, ensure that you select one who knows how to manage their personal and business finances. It would be wise to avoid anyone who is in the midst of a financial crisis.
- Respectful Partner– Partner with someone whom you respect. The aim of a partnership is to work as a team to achieve success. Therefore, choose someone whom you respect and whose opinions you consider to be valuable.
When you decided to take in a partner to take your business to great heights, seek a partner who is versatile, creative, dependable, and skillful. Whether he will contribute financially to the business is less important. What matters is whether he is understandable and shares your passion for the business.