Finding the Right Business Partner

Working with within a business partnership, as with anything, has both its advantages and disadvantages. The decision to go into business with another person isn’t something that should be taken lightly, and a fair amount of time must be taken so that you can carefully consider every implication that a partnership entails, and to be sure that you are making the right decision.

Working with a business partner may or may not benefit your business. Caution, coupled with strategic thinking and understanding that impact that introducing another key figure will have on your business, needs to be thoroughly understood before you make your final decision. Because it is so important, we’ve compiled a list of pro’s and con’s, together with reasons as to why you should and should not opt for a business partner.

Advantages

A business partner can help to develop your business, whilst giving you a strong teammate. Here are some advantages to opting for a business partner:

Double the manpower
Working with a business partner allows you to get more work done. When starting something new, resources can be limited, so a business partner that you can trust can be of great assistance and give you a much needed helping hand.

A difference perspective
Outside perspective is a marvellous tool to have. Objectively evaluating a new idea can save both time and money and help you to avoid costly mistakes with runaway ideas, which at the time may seem fantastic. When two or more people are involved in making a decision, the entire process becomes much easier, plans become more realistic, and concerns can be aired.

More skills to contribute
Having a business partner on board means that you’ll have use of an entirely new skill set; skills that you may possible not possess. Tasks can be divided according to the strengths that you both have, which means less time doing the things that you’re not so hot at, and more time concentrating on what you’re good at.

Double checker

Having a business partner means that there’s a barrier between a new idea forming, and that new idea becoming a reality. That’s not necessarily a bad thing. Discussing ideas with a business partner can help you to realistically evaluate the idea, and help put it thoroughly through its paces.

No hiding from your mistakes
Business partners hold you accountable for the decisions that you make and can help you to stay motivated. Going it alone is tough; a business partner is there to keep you moving.

Disadvantages

Choosing the wrong business partner can lead to stress, frustration, and even bankruptcy. Here are a few disadvantages when working with a business partner:

Profit sharing
Splitting the profits is another factor that must be taken into consideration. The idea of a business partner is that they help you to grow the business whilst making more profits. Failure to do this could leave you asking why they are even there.

You’ll work differently
Working with someone who doesn’t share the same work ethic as you may cause problems. Not being fully committed and not following through on responsibilities can end up bankrupting a business. Make sure that you absolutely know the person that you are going into business with or it could be your reputation on the line.

Disagreements
Disputing about long-term goals may cause serious problems; if you’re not working together for the greater good, you may end up causing each other stress and wasting time. Make sure that your goals are the same and that you are both striving for the same results.

Lack of Experience
When working with a business partner, you need to be able to rely on your partner to deliver the results that your business needs. Failing to do this right could lead to disaster.

Your reputation at stake
Dishonesty and shady practices could leave your reputation in shatters. Your reputation is worth more than you may realise, and having a business partner that could negatively impact this, is not worth the trouble. Before deciding to take on a business partner, be certain that they add value to both you and the business.

Consider this Before Working with a Partner

Analyse the reasons why you want a business partner before making a decision. Below is a list of both good and bad reasons for selecting to work with a business partner. Make sure that you answer yes to the good list, and rethink your motives if you answer yes to any from the bad list.

The good

Create a business partnership for the right reasons. Good reasons for entering into a business partnership include:

1.      You need someone that possesses a different skill set to what you have

2.      There is more work for just one person

3.      You know of someone that can add value to your business and help it grow

4.      You work well within a team and will work much better in a team environment

The bad

Entering into a partnership for the wrong reasons can harm your business. Bad reasons for entering into a business partnership include:

1.      You want someone to agree with everything that you say

2.      You want to offload all of the responsibility

3.      This person is your friend

4.      You want someone just like you, who wants the same as you

What do you really want from a business partner?