Business partnerships: The facts

What is a partnership and what to look for in a potential partner? You may be concentrating so much on the business itself and in securing funds that you neglected these aspects. Are you in a partnership simply for the money? All the more reason to check out the 3 things to look for in a partnership, in this article.

Do you know your partner well?

Key players When you work on a business project, a communication glitch is the last thing you need, especially with your business partner. You are both key players to the proper running of your business, because both of you lead the business. The whole business, which may be made up of operation and the staff, depends on its leaders, unless it is well established. When the vision goes, the business can't hold for long. Partnership simply for the money is not good enough for a business that isn't established. When partners are at odds, the business is at risk, regardless of the money.

Do you complement each other?

Complement each other It is great if you both know the subject matter well in addition to knowing how to run the business. Otherwise, you should at least complement each other. In a bakery business for example, your partner may be knowledgeable in baking while you know how to run the business. Each of you should be strong in your own area and of course, you are both in agreement - for the most part at least. Otherwise, the learning curve is going to be tougher and you may eventually need to find a business partner who has the missing expertise, if you can find that person.

Can you trust this person?

Look for someone who you can trust
Starting a business is hard enough, you certainly don't want to have a partner whom you can't trust, for example, in cases where one partner runs off with the money. It happens in cases where the other partner least expects it, and usually when the business is starting to make money. Compromise
Many cases of mistrust are of a less serious nature though. It may be that the partner is irresponsible and leaves you to tidy up the odd ends for instance. If so, let your partner know it in ways that he can understand. More often than not, you can do this without hurting his feelings.