If you are interested in choosing a business partner then this article is going to be resourceful for you. You are going to learn about the benefits of a business partner as well as some downside. And You will learn how to choose a business partner.
Choosing a business partner is a critical phase that you should consider heavily before jumping into a partnership. Even if he may seem to be the perfect fit for your brand new enterprise. Believe me from personal experience, in the beginning, everything seems shiny.
Before we jump in I would like to note that everything I am going to share with you is the opinions that I have come too from real-life experience. With two business partners in the past.
I am going to reveal how I met with them, how we decided to team up and become business partners, and what occurred on our journey together that caused us struggles.
Why Would You Want to team with a Business Partner, to Begin with?
Business Partner Benefits
People go on a business venture along with a business partner for multiple reasons. It could be because it takes part of the pressure of your shoulders, less responsibility, and less start-up cost to begin with and many other reasons.
The reasons that I have stated above are not simple enough to go on a partnership with someone. Usually, when teaming up with a business partner is because you share the same vision and passion for your business opportunity. And the part that there is someone to share your dream is by itself motivating and makes you become more productive toward the new venture.
Of course, each and every person should decide for himself whether a business associate is something that he wants or not, you consider that having a partner has also flaws.
From my personal experience, I know that I am a person that needs a little push before he starts doing something, and I am way more productive while being on a team with someone. So I decided that having a partner with me could be very helpful for me.
It sure has been helpful, for many reasons. The first is the fact that I am still soldier – and that means that my time at home is very restricted, so having a partner that could function on the business while I am away is crucial.
The second reason I needed a business partner was that I just didn’t have enough money, not for the start-up cost. Nada. I could have pulled some strings and get my hands on a certain amount but it sure wasn’t enough for the business we wanted to start.
How to team with the right business partner?
Choosing the right business partner is quite a hard task. You’ve got to make sure that your future to be a business partner is sharing the same goals (even though it isn’t a deal-breaker).
So how do you choose the right business partner for you? It’s quite simple, you need to find someone who shares your interest, who knows a thing or two about the industry that you are stepping into (this one is a bonus), sit down with him and get to know him.
Finding the business partner is a different story, he might be someone that you already know (or someone you have in mind). He could be your one of your friends or even your own family (even though a lot of people say that it is not wise to mix business and family I disagree with this statement).
But if you don’t happen to know of someone who could be your potential future business partner? That is not a problem as well. I first recommend that you have your business idea prepare upfront so you’ll know where to look for (and how to choose). The business idea reflects on the industry you will be looking for your business partner. As I mentioned above, you should consider choosing a business partner with some experience in the field you are getting into.
For example, if you have an idea to start a gardening services business and you are looking for a partner that is what I would do. First of all, let’s consider that I have no prior knowledge or whatsoever regarding gardening services. So I would like to look for someone who has experience in this field (he does not have to be an expert, and that is even better if he is not an expert). I would look at advertisements on the local newspaper, flyers or at the yellow pages. If none of them helped me then I would check Facebook (I bet that you would find at least some of the local gardeners over their or someone in this field).
Then I would list the candidate and contact them in order to set up a meeting, try explaining briefly what is that meeting all about (don’t worry if some of them say no for a meeting). In order to test if the person that is sitting in front of you is fit for the job, you will need to interview them briefly about their experience, knowledge, and goals toward the future relationship. You should show your candidate the benefits of teaming up with you – it could be increased in the demand, other marketing channels, new equipment, etc.
How I Chose My First Business Partner
I am going to share briefly about my experience when I first teamed up with a business partner. In my case I didn’t have to go look for someone in the industry I was looking to go into, it was one of my oldest friends.
The business idea that we both came up with the idea to start a food truck business. We both had no prior knowledge about it at all. But we were thrilled enough to go look for answers from the internet, people we knew.
We decided to become business partners because we both shared the same vision toward this new venture, and both of us wanted to succeed for our own reasons. It really was the beginning of a new era in my life. The thrill of talking about it and the excitement from planning it over and over again has made our idea strong and full of life. But it wasn’t enough as I would further explain in the future.
Things to settle before making the agreement
Every partnership has to have an agreement, written in the form of a contract. You could write it yourself, or use the help of a lawyer who specializes in this field for a fee. Both of sides must agree and sign the contract before any step to start the establishment is taken.
Both parties should accept the terms of the agreement (contract), and if one side is opposing one of the terms then he should speak up before the critical moment of signing.
You must remember that your agreement should be fair to both of you. And must reflect the revenue distribution between the partners in a way that each side is getting what he supposed to get. Whether it be 50/50 or 30/70 the amount of percentage you get should match your contribution to this enterprise.
Another thing that you must agree on is what is expected from each of the sides toward the new venture. It might seem irrelevant at first but trust me you have to do that. Person A must know that he is in charge of 1, 2 and 3. In addition, Person B is in charge of 4,5 and 6. That way everybody knows what they should do and focus on. And in case of some failure, you could know where the responsibility is falling at, and who is to take care of the problem.
In light of what I wrote above, I think that having a business partner is definitely not for everyone and should not be considered as a must, because there are a lot of disadvantages for a partner that is not doing his job. Everyone should consider for themselves whether a partner is useful or not.
When it comes to choosing a partner, you should always keep in mind that your partner’s vision and goals should be well aligned with yours. Make sure that he is a contributor rather than a freeloader. Also keep in mind that if he already has prior knowledge in the industry you are about to go in is a big BONUS!
That’s it for today, I would like to thank you for reading my content. If you found it useful please consider leaving your feedback in the comment or sharing it so other people could enjoy it too.