Incorporating a new business is like giving birth to a baby.
Like you nurture and help your child grow, the same is the case with your business. You help it evolve and grow to new heights.
The most important role during this entire process is the role of your partner. It would help if you had someone with the same vision and enthusiasm you have for your business. To help your business reach new heights, the support of your business partner is the most crucial
In case you are wondering why one needs to research so much while picking up a person, then let me help you by comprehending the importance of the right business partner. Trust me when I say this, choosing a life partner is easier than choosing a business partner. Just like a marriage which starts with all things romance, fantasies, and dreams, the same is with the case of a business which can quickly turn into heartbreak, bankruptcy, fraud and more.
Always remember that partnerships are legal bonds; if they go wrong, the “breakup” can also go bad. No doubt, the introduction of a new business partner adds new dynamics. As now you have two people making top decisions regarding financial matters and business activities.
The real reason to have a business partner is to leverage oneself and de-risk the business. There’s no surety of anything in this world, but prevention is always better than cure, right? So let us analyse a few options while choosing the right business partner.
Known or Unknown
It is crucial to make up your mind regarding the idea of whether you are okay working with a known person or an unknown person. While both come with their pros and cons, working with a friend or a family member can sometimes be daunting. Whereas working with a stranger can be risky as your about to share your firm with an unknown stranger. Thus you need to calculate as to what kind of person you are comfortable working with.
Often time’s people invest their trust in someone with whom they share the same set of vision and think they are working to grow the company quickly and extract profit. In this entire process, they skip the most crucial step in doing background research. One should try to connect with his partner the old fashion way by meeting him, get up close and personal with him, share your story and learn about theirs. One can also search their company financials, intellectual property and legal cases running against them from online due diligence platforms. Then only you can able to trust that person with your business.
Communication is the key to every relationship. Be it personal or professional; one needs to communicate and share their opinions. Lack of communication will only give roots to misunderstandings. Thus it is crucial for you to be able to speak to your partner and talk to him about the working of the company or regarding any financial matter. Sometimes technical excellence comes at a price, often in the shape of interpersonal skills.
You can never be in a partnership with someone you don’t respect. Partnership in itself means equality; your partner holds the same role that you have in a company. The primary purpose of looking out for a partner is to form a successful team. If you don’t see your team partner as equal, your employees will also not give him the same respect he deserves. So it’s essential for you to treat your partner with utmost respect and equality.
As an entrepreneur, one can understand the importance of experience. Books and the internet can provide you with adequate knowledge, but practical knowledge can teach you a lot more. Try to look for a partner who has some kind of experience in the field of your business. Interview as many people you can to find that perfect candidate who is a complete balance of the skills, experience, creativity and vision you admire. After all, you are handing over your business to that person; make sure it is going in the right hands.
Make sure that after finding a partner, you are clear with him regarding your vision and your goals. Aq very sensible and mature decision you can go for is making a partnership deed with your partner a.k.a be sure to get all business agreements in writing. Misunderstandings over money and entrepreneurial vision can ruin even the best of friendships and other personal relationships.
Shanker Rungta is a Data-Driven Marketing and Automation expert.