Questions You Need to Ask Yourself Before Moving to Pick a Business Partner
| 3 minutes read
You might enjoy hanging out with your potential business partner, would they really make the best co-founder? We are going to find out the answer & questions to ask before partnering in a business this article. Stay tuned.
Well! First of all, congratulations on being an entrepreneur, we know a lot of exciting things happening around you. Launching a business is one of the toughest but leaves you with the most rewarding experiences.
It has been observed that many entrepreneurs join forces with a partner to defray costs, build creativity, and keep financial stability. Starting a business with a partner is like stepping into the commitment with a never give up attitude.
Before starting a business there are few thoughts and questions that revolve around your mind, we are going to answer some of your questions, that might help to give you clarity. Also, kindly read the full blog until the end to understand partner compatibility, core values, and ethics.
Questions to ask before partnering in a business
Do you want or need a business partner?
Starting a business alone is risky. Taking the plunge alone can seem impossible. But before you snag yourself to another person, explore the option of starting a business on your own. You may be astonished at how prepared you are to be an entrepreneur.
Do you and your business partner share common values, goals, and work ethic?
A common goal and sharing the same work ethics assure a long partnership commitment. It may seem like a no-brainer, but it’s essential to consider core values before jumping into a partnership. Make sure you are on the same page when it comes to strong business values like brand identity, workplace policies, and long-term growth strategies. Likewise, you both must treat others — from your team members and contractors to customers and the media — with the same level of respect.
Does your partner’s skill set to clash with or complement your skills?
Sharing an equal workload is one of the best reasons to partner up. But if your skills overlay, it becomes tough to compete with each other, or worse, you’ll have a skills gap, and your startup could be in trouble. In the most preferred situation, you and your partner will meet your business’s leadership needs in different but complementary ways. For example, if you are the charismatic type who understands how to close a deal, you may want to partner with a more intellectual personality who is more comfortable with the strategy. On the other side, if you and your partner don’t match then, it affects the overall business operations which could let to disaster. Compatibility with your partner is the first step to move towards success.
How Profit ratio is distributed?
Fairness plays a vital role to decide how you will split up ownership of your new startup. Remember to have a lawyer, who reviews any operating agreements to ensure that profits are distributed accordingly and that you are comfortable with any tie-breaker clauses should you and your business partner disagree.
After self-questioning, we are going to highlight some qualities you and your potential partner should have.
- You must feel trustworthy and loyal
Trust is something that can not be earned on the spot, and it takes time to understand the person. When you decided to go with the person, you should not feel insecure, because doubts, lack of understanding, and common goals could ruin your relationship with your partner. And overall, it will affect the entire operations of your startup.
- Similar Mission and Vision
When there are two or more partners in a startup, to carry forward operations, it becomes important to work and execute in the same direction as per plan. Every partner should have a proper clarification about how to switch the power button and boost the performance of the company and proceed towards the set target. Performance coo-ordination is what is required.
- Each of you must fit the missing pieces to complete a puzzle
This simply means filling the partner gap with your talent, and the same process applied to others. No person is perfect; everyone has some limits and restrictions. Therefore it is important to combine into a joint force by fulfilling each other’s gap and extending limitations.
The final take-away from this article should be that you need to have these discussions and that finally, you need to assume that marvelous changes WILL happen. Changes will even occur to what you think is important or what you think is your “mission”.
The truth is that your partnership is made between two humans or more. And being a human, you cannot always escape the chaos in your lives. Partnerships that fail to accept – and plan for – these truths are delicate. They crash under the first sign of all-too-human chaos.
Questions to ask before partnering in a business by answering these questions and by preparing for your answers to unavoidably change in ways you can’t imagine, your partnership adds the supple strength of litheness.
Consider having clear agreements, incentives that align, and accountability. You should have you and your partner pinned down, on paper, as engines of value-creation within the business you’ve joined on.
It’s your partner humanity, after all, that makes them worth partnering with.