You have a great idea for a new business, but you know you need to balance passion with wisdom. A wise idea is to choose a business partner who has the experience that you lack.
How do you find the right person to be your business partner? Here is a guide you can use:
- Find someone with the same value system. Your partnership won’t go far if you have wildly different values and beliefs. A jointly held vision of the future — and your new company’s place in it — is essential for success.
- Make sure that you have different strengths. You want a partner whose skills complement your own. That way, you can more easily create something that transcends both of your individual abilities.
- Talk honestly and openly about your vision and your distinct roles. It can be really tempting to table the hard conversations until you’ve worked together longer, but that can set a terrible precedent. Plus, you want to know that the person you chose as partner is capable of having mature discussions about boundaries.
- Find out if the other party is financially stable. You may be hesitant to throw stones, especially if you’re opening your doors on a shoestring budget. However, not all financial risks are alike. If your prospective partner has creditors calling or stalking their doorstep, that could negatively affect your business.
- Be willing to put everything in writing. If your business partner doesn’t want a formal agreement regarding your roles, rights and obligations, that’s generally a bad sign.
Once you’ve found the partner who can help you make your dream a reality, find out how an experienced attorney can help you set up your partnership agreement and find the right business structure for your needs.