How to Choose a Business Partner
August 10, 2020 (Investorideas.com Newswire) Owning your own business will give you the freedom to do as you please, but it's not always possible to start a company without a partner. You may lack the financial resources or certain skills that a partner can offer or make up for. Maybe you just like the idea of working with another person every day and having someone to bounce ideas off of. If you're looking for a great business partner, make sure you consider the following criteria. The right partner will be extremely valuable, while the wrong person can make your life quite difficult.
Someone You Trust and Like
Ideally, you and your business partner will be spending a lot of your time together. When the company is just starting out, you'll need to spend hours creating your business plan, meeting with investors, and discussing future plans. During this time, you might end up seeing your business partner more than your romantic partner, so it's important that you find someone you trust and like. This doesn't mean you ask your buddy from college to go in on a business idea with you just because you think he's funny, but your friendship should be a factor in the decision. You need someone whom you trust with your professional and personal life since the choices you make as a team will affect your finances, time away from your family, and your reputation as a business owner. If you don't trust someone with your credit card to make an ice cream run, you shouldn't give them the keys to your business.
If you partner with someone who has the exact same background and skills as you do, he or she isn't bringing anything new to the business. Two people who are excellent with people but terrible with finances doesn't make a great partnership. Rather, look for someone who has the skills you're lacking. If you're great with verbal communication, find someone who excels at written communication. Having complementary skills will ensure a successful partnership and business. It also makes it easier to divide responsibilities. You'll both naturally gravitate toward your skills, so the partner who's great with money can handle the financials while the other takes care of connecting with potential clients and other business owners. Consider completing a skills inventory with potential partners to see if you're able to complement one another.
Similar Business Ideas and Values
While different backgrounds and skills will help you act as a well-rounded team, you'll still want to have some similar ideas. You can still debate the benefits of Instagram marketing, but the fundamentals of your company should be set in stone. Discuss your business's values and vision and make sure you both agree on the basics. Your partner should be willing to support the company no matter what and explain what you both stand for. You should have similar business ethics and ideas about what you hope to accomplish as a company.
You'll also want to agree on what benefits you'll offer employees, including yourselves. Decide what health insurance and life insurance you will offer. How much coverage you offer will incentive employees to stay with your company. You'll also want to decide for yourself what type of policy you'd like. As a small business owner, your life insurance needs may be greater than someone who does not own their own business. Your family may rely on this policy if something happens to you. Compare life insurance with iSelect and decide what policy will best suit your needs. When you and your partner agree on benefits for your team and yourselves, you show that you have similar values and goals.
Take your time when choosing the right business partner. He or she should be someone you trust and respect — and that's just the foundation. You can still disagree with an amazing partner, but make sure you agree on the basics and your partnership will last.
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