How to Select a Business Partner

When developing a business idea, many new entrepreneurs struggle to support all aspects of business growth and development. It is worth the time to consider adding a business partner to your matrix. A successful partner shares the vision of your business as well as provide complementary skills to yours. Here are some tips to help you select the best partner.

Determine Your Needs

Even if you are just looking for a partner to help finance the business, odds are, they may ask for a certain amount of management of the business. While it is tempting to recruit people with skills that are the same as yours, you should consider a person whose skills complement your skills. This allows you both to focus on your talents appropriately.

Create a Business Plan

A strong business plan is integral to all aspects of your business. It helps you identify your business’ vision statement, financial goals, and marketing strategies. Have this information prepared before you start the partner search. Every prospective partner should ask to see your business plan as they consider the opportunity you are presenting.

Ask Your Network

Your professional network or mentor are resources to help you vet potential candidates. They may know of a prospective business partner and can provide references for you. Your network provides support and suggestions as you walk through the partnership process.

Consider Their Finances

Do a thorough background search on your final list of applicants. The more financially secure they are, the better they will work for the success of your business. A partner with financial or personal issues can get distracted from the business.

Try To Get Along

Even if the applicant is perfect on paper, make sure your interpersonal skills match. Communication is the key to a successful partnership. If it is difficult to communicate with an applicant, it can make working with them challenging.

Agree on Goals

Make sure that your partner understands and supports your business’ vision and goals. You and your partner should be able to set goals and propel your business toward growth.

Write an Agreement

When you make an offer to a suitable partner, hire an attorney to write your partnership agreement. They will protect you and your business’ interests. This legally binding document covers such issues as:

  • Compensation and benefits
  • Responsibilities
  • Dispute negotiation
  • Partnership termination

Selecting a business partner is a detailed process. It is worth the time and effort to choose the best-qualified partner. The success of your business depends on the ownership team you put in place.