How to Identify Good Business Partners
December 16, 2014
We continue our on-going discussion regarding “business partnerships”. Last time, we talked about how to identify a potentially bad business partner. This week, our focus is “How to identify GOOD business partners”.
As I mentioned previously, there are two types of business partners. Those there to make the business succeed and those who are there to make themselves succeed. Obviously, your goal should be to find the former! I have partnered with several people in the past. I’d rather you learn from my mistakes then make your own and learn the hard way! Below, I’m going to list several positive attributes that you should look for in a potential business partner.
The Positive:
1. A business partner that’s willing to take a pay cut or no pay when the company is first started. Unlike the “bad” partner to avoid, this partner is willing to make significant fiscal risks in order to grow and evolve your business. After all, most people who partner in business are doing it to both grow the company and the bottom line. More often than not, new partnerships require that all partners make some sort of financial sacrifice. If a potential partner is willing to make tough personal financial sacrifice from the get-go, you likely have a “keeper”!
2. A potential business partner who is willing to invest their own personal monies to grow the business. Or at least help with increased costs. One former partner of mine would demand a large portion of profits. Yet he never put one penny of his own money into company coffers! Avoid profit leaches! If you have a potential partner that has no qualms investing their own money into the company, ensure that they’re on your “shortlist”!
3. A potential business partner that doesn’t require or at a minimum doesn’t stake their partnership on your hiring of their family, friend or spouse. Most small companies employ friends, family or spouses. If a potential partner brings this up right-away or their decision hinges on whether or not you’ll hire their friend, family, or spouse, then they probably don’t have the best intentions in-mind. A good partner is interested solely in growing the business and the bottom line. Not employing those closest to them.
4. A potential business partner who is humble! Trust me, avoid the narcissistic peacocks! They will destroy your reputation and will likely distract potential clients with their selfish focus. There is nothing more satisfying than someone who is great at their job. Yet you never hear them promoting or slapping themselves on the back. Humble people are better learners and make far better partners!
5. A potential business partner who is emotionally and mentally stable. I swear, one of my old partners was literally off his rocker and needed professional help and medication. Find a potential partner who is stable and has control of their temper. You do not want your potential partner to be one who may end up losing business. Also one who may end up hurting someone physically because they’re “a few bricks shy of a full load”! You want a partner, not an extra child or family pet!
Hopefully, you’re taking these recommendations to heart! Join me next time when we continue our Business Partnership journey!
