A partnership is a contractual arrangement between two or more people or companies to manage and operate a business. Business partners invest their money into the industry they would like to work in, in order to share in any profits and pay a portion of any losses.
You won’t know if starting a business venture with a partner is a good idea unless you force it on yourself. If you’re looking for a new business partnership, read this first to make sure you have enough information to make an informed selection.
How do I find a potential business partner?
It is a good idea to search for a potential business partner or organization that has good characteristics for your business partnership and brand. Here are some additional resources for finding a business partner:
Look around you
You don’t have to go far in order to find the ideal partner. Now you simply must take advantage of the resources available to you. Some of the resources you can utilize to find a business partner are listed below:
A. Former co-workers
Former coworkers can be a great location to find a business partner because you already know their work ethic and there is less danger that the potential business will fail. The key to a successful partnership is to determine former coworkers who have experience, abilities, expertise, and desire from inexperienced or demonstrated poor work in the past.
B. Online platforms
Your existing contacts may be unable to assist you if you wish to start a business in another city or country. If that’s the certainty, you should consider to spend some time online looking for a business partner. Some of the most popular websites for building potential business relationships and collaborations are listed below.
- CoFoundersLab: This matchmaking-style website allows you to establish a profile and use their AI system to deal with a business partner, co-founder, or team member.
- Stealth: Stealth works by connecting like-minded entrepreneurs together and allowing them to discover co-founders, discuss ideas, obtain startup tools, and more.
- Cofoundme: Many small business entrepreneurs create a profile and get success matched with possible partners through Cofoundme. You can also post business ideas, search for startups, and post job openings.
- LinkedIn: LinkedIn is created for business networking, and while it may take a little time and effort, it’s a valuable resource to use when looking for a potential business partner online.
If you’re seeking partners on the internet, be sure you’re both working for the same goal before making it official. Also, before putting your partnership on paper, meet your potential partner in person.
C. Former clients
Your former clients can be a prospect for a business partnership as long as the previous relationship ended well. Perhaps, keep in mind that if your company competes directly with the company where your former client works, they may have signed a non-compete agreement with their previous job which prevents them from working with you.
D. Family or friends
Several business owners avoid forming partnerships with their family or friends. However, if your work styles are compatible and the thought of seeing your business partner both in and out of work does not hinder you from forming a partnership, a family member or other person that is close to you can be reliable partners. Just make sure you know exactly what position each of you will play in the firm right from the start and create an exit strategy to avoid harming the personal relationship if the business fails.
Find some common ground
You will need some common ground as you develop a successful relationship with one person. You may begin by examining their values. Do you think you’re on the same page as each other? If not a single matter can be found, your partnership might be unstable.
Choose a partner you can trust
Finding a solid partner boils down to finding someone you can trust, which isn’t always simple. You may ask questions and have a casual job interview type of conversation to know if you can trust that them or not. If are unsure about your possible partner’s integrity and skill do not disregard them. Instead, use those thoughts to think deeper if your possible partnership will last in the long run.
Pick a partner who is hungry to succeed
You want a partner that has a great deal to the business as you are, so look for people who have the same entrepreneurial spirit as you. Look for someone who is active in their skill set outside of business hours. Managing a business is a difficult task it requires a deep understanding and interest in the industry as well as patience. As a result, make sure that you discover a potential business partner that is hungry to succeed before signing on the dotted line.
What makes a good business partner?
The potential business partner you choose should share great focus for your company. If your partner is unwilling to put hard work into reaching the vision and goals you establish, your business venture may not survive. It is pointless to have a professional relationship with one partner who is not willing to put effort and commitment into making the company successful.
Innovators are the most successful entrepreneur, having someone who can continuously come up with creative and fresh idea/s would be a fantastic business associate. You will need to locate someone to assist you in marketing the brand with a distinctive image and values to distinguish your business from the competitors.
Another trait to look for in a colleague is the ability to have an open mind. Collaborating with someone who cannot point out opinions or ideas might be challenging. In the worst case, it may hinder your company reaches its full potential.
Has the ability to listen and resolve conflicts
You should expect that you and your business associate will not always agree on everything. When you work long hours with the same person, conflicts are certain to rise. That is why both of you should have the ability to listen in able to resolve conflicts. Also, someone who keeps a record of wrong or holds grudges can become a burden rather than an asset.
Shares the same goal and values
You should expect that a business has a lot of bumpy roads to take before it becomes financially stable. When looking for a business associate make sure that you consider those who have the great skills to achieve the same goal as you.
Do you really need a business partner?
This is one of the tough questions to ask. But many investors decide to start up their businesses alone, instead of spending their time and money on partnering. As a result, the business plan, financial operations and the process are all decided by the owner.
Contrary to that, some small business takes focus on having a potential business partner for financial assistance and advice. This can be applicable to you too especially if you breaking into the venture with nothing more than limited capital, skill or experience. In these challenges, having a co-business owner can be the best way to deal with the process.
What do I need from a business partner?
There are tons of benefits from having a partner that can lead to good business development. What you need to do is to figure out the right skills and characteristics that you want your potential partner to have.
You do not want a partner who leaps and skips without notice. You do not need to spend the same amount of time at work, however, it is beneficial to be aware of each other’s expected time commitments. In line with that, make sure that both of you work on the shared vision and are committed enough in able to overcome all the challenges and stressful situations in the business.
Working with a partner with different personalities can be challenging. It is important that you observe their background and their professional level in handling challenging situations. Take note that the behavioral characteristics of the business owners affect the employees and even the customers.
A business partner with good market contacts can aid in marketing or business development and leveraging your business with prospective clients and investors.
What do you offer a potential partner?
When you look for a business partner, make sure that you have something to return. It is a common thing that what you look for is what you should offer. If you require the things mentioned above, you shall also learn how to give them back.
A partnership is not a one-way relationship. Both of you need to put the same amount of effort to keep the business going. Before you begin looking for a suitable partner, make sure you are well prepared to discover the proper partner to assist you in achieving your objectives.