Research shows that over 543,000 businesses are started each year around the world as of 2019. This number is expected to further increase in the coming years. However, the same research shows that over 50% of these businesses do not make it to their fifth year. There quite a number of reasons that cause this and one of them is poor business management. That’s why it is important to learn how to run a business and also choose those you intend to partner with wisely. Running a new business alone is quite challenging especially with a lot of tasks that need to be done during the first 6 to 12 months. That’s why most people opt to partner with someone in order to reduce the burden on their shoulders
But before you partner with someone it is important to note that not everyone you know is fit to be a business partner. You need to do your homework well in order to choose a person that will help you drive the business in the right direction. In today’s article, I will share with you 7 factors to consider while choosing a business partner.
- Should believe in your vision for the business
One of the first things you have to look at is your potential partner’s reaction when you share with them the vision you have for the business. Remember the vision should not be just about money but what you want to accomplish or the impact you want to create. Your partner should be able to believe in your vision and willing to work hand in hand with you to achieve it.
- Don’t choose them because they are your friend
This is one of the biggest mistakes that people make while choosing business partners. They assume that someone being their friend will automatically make them great business partners. Friendship and business are two different things. It is more fun having a friend as your business partner, but if they don’t have a business mindset, this partnership may end up even ruining your friendship. So be careful while choosing your friends as business partners.
This is one of the most important consideration you need to make. A business is just like a marriage, if the two don’t trust each other, it will not last for long. However much it’s not good to choose a partner just because they are your friend, it’s also not advisable to partner with a total stranger whose track record you don’t have. It’s important to have some prior knowledge about the level of honesty and integrity of person you are about to do business with
- Your partner should have a business mindset
Business requires taking some calculated risks and having a partner who doesn’t understand this will not help you grow the business. People who are afraid of taking risks will always want to do safe business and in most cases, this will keep the business in one position or even fail it. So, a partner with the right mindset is the one you should go for.
- Good work ethic
Your business partner should be someone who is ready to work and will always do their best each day they show up for work. No matter how you dream and set goal, your business will go nowhere if you don’t put in the work. It’s better to do the business alone than doing it with a lazy person.
- Communication and openness
Communication is key for any relationship to be successful and this is not any different in business. You and your partner should be able to have those tough conversations openly without feeling any insecurities. A partner who doesn’t put issues on the table will not be an easy one to deal with especially in the tough times. Get someone who is willing to share almost everything about what they think about a particular topic you are discussing.
- Different skills
Choosing a partner with the same skills and strengths as you is not bad, but it’s better to choose one with different skills and strength. For instance, if you are great at marketing and communication, you could choose someone that’s good in accounting and doing the technical stuff in the business. A business will gain more if various skills are brought together to pursue the same cause
Like any other relationship, you may not find a partner that is 100% perfect, but at least they should fulfil most of the traits I have just shared above. That’s why it is important to choose someone that you have some knowledge about. It could be your former coworker or someone you worked on a particular project with so that you know whether this person meets the criteria of being your business partner. And as you share with someone your opinion of having them as your business partner, it is important not to be so persuasive. This is because someone who’s interested in doing business and following your vision will always click a few moments after you’ve shared with them what you intend to do. You also need to give them time to make up their mind about whether they are ready to partner with you or not.
All the best as you choose your next partner in business