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Alright, so you’re ready to take the plunge and start or expand your business. This is exciting, but before you jump in, you’re faced with one crucial decision that can make or break your venture: choosing the right business partner.
Trust me, I’ve seen it all. I have owned and sold several businesses, and I have been an entrepreneur for over 30 years. I once had a potential business partner who tried to catfish me, but I knew it was a scam all along. The right business partner can skyrocket you to success, while the wrong one … well, they’ll have you asking yourself how to hit the rewind button.
Here’s the deal, picking a business partner isn’t that different than choosing who you get married to — and sometimes, it even feels like a bigger commitment. You need trust, communication and a mutually shared vision. But you also want to avoid bringing someone on board who will drive you crazy within the first week, right? Don’t worry, you’ve got this. Here’s how you can zero in on Mr. or Ms. Business-Right instead of Business-Wrong!
Related: A Bad Business Partner Could Cost You Millions — Here’s How to Avoid a Toxic Partnership
1. Know your own strengths and weaknesses
Before you go looking for a business partner, take a good hard look in the mirror. What are your strengths and where do you fall a little short? For example, maybe you’re a creative genius, but public speaking terrifies you. Finding someone who balances out your weak spots can help create a dream team. A complementary skill set is foundational.
2. Align your values and vision
Here’s a major red flag to watch for: If you two aren’t on the same page when it comes to the big picture, you’re in for some turbulence.
I was working on an online magazine business deal with a potential partner a few years ago, and at the beginning, it sounded great. As time went on, I was researching their website, and the companies that advertised on their website were completely “off brand” with what we were used to in the luxury space. I had to have an honest chat about what success looked like for each of us and decided not to proceed with the partnership. My reputation is everything and when you take on a partner, their reputation can become yours.
3. Communication is key
Trust me, you will disagree with your partner at some point. Healthy debate is a sign of a good partnership. But if you can’t communicate openly and respectfully, things spiral fast. Pick someone who values honest conversations and won’t go silent when the going gets tough.
I have had business partners who overcommunicate as well. While transparency is essential, constant updates and excessive discussions can slow down decision-making and create unnecessary overwhelm. It’s a fine balance — you want a partner who keeps you in the loop, but also respects your time and trusts you to handle your role. Establishing boundaries and clear communication norms early on can prevent overcommunication from becoming an obstacle.
Money talks, and this is the most important discussion you will have and should have at the beginning stage. Several questions should be discussed upfront: Who is investing the money in your partnership? What will happen if the business fails or grows slowly? What will you do if managing money issues becomes a problem? Open and honest discussions with partners about expenses, future investments and potential cost-cutting measures are essential.
Related: Most Business Partnerships Fail — 5 Hacks to Make Sure Yours Stays Intact
4. Test the waters first
Before you sign any contracts, think about starting small. Work on a smaller project together or run a trial partnership. Think of it like dating before marriage. You get to see how well your workflows mesh without the pressure of a full-steam-ahead commitment. I had an attorney who gave me this advice with a potential partner before I fully signed the partnership contract and I wish I had taken her advice in the long run. It would have saved me a ton of time, money and emotional turmoil.
5. Legalities matter
I know, contracts can sound boring, but solid legal groundwork is a must. Draft up a partnership agreement that maps out roles, responsibilities, equity and exit strategies. No one wants to think about the “what ifs,” but doing this upfront saves a ton of heartache later. Think about long-term goals to add in. Are you building this business for rapid growth and selling in five years or is this your lifelong passion project? Get those visions aligned early.
6. Trust your gut
You know that little voice in your head? The one you’ve sometimes ignored to your detriment? Yeah, start listening to it. If something feels off — even if their resume is incredible — it’s worth pausing and reevaluating. Intuition is powerful when guided by reason. If their skills don’t quite align or they seem to be stretching the truth, trust your instincts and continue searching for a better fit.
7. Look beyond the resume
While skills and experience are important, they’re not everything. A candidate’s personality and work style can have a huge impact on team dynamics and performance. Don’t be afraid to ask behavioral questions or even bring in other team members to meet with potential candidates. And don’t discount cultural fit — someone who may have all the right qualifications but clashes with your company values could ultimately lead to more harm than good.
Related: Here’s What You Need to Consider Before Taking on a Business Partner
8. Bring some fun
Finally, pick someone you actually enjoy being around. You’ll spend long hours problem-solving and celebrating wins together. The energy should feel exciting, not draining. Surround yourself with people who get you, inspire you and remind you why you started.
And there you have it! Choosing a business partner is an adventure, but it’s also one of the most impactful decisions you’ll make. Take your time, do your homework and make sure the person you choose is someone you can laugh with along the way but realizes that business is still “serious business.”
Now it’s time for you to go out and build your dream team. Remember, this is just the beginning. As your business grows and evolves, you may need to re-evaluate your partnership or bring on additional partners. The key is to always communicate openly and honestly with each other, set clear expectations and boundaries and never be afraid to have difficult conversations when needed.
Alright, so you’re ready to take the plunge and start or expand your business. This is exciting, but before you jump in, you’re faced with one crucial decision that can make or break your venture: choosing the right business partner.
Trust me, I’ve seen it all. I have owned and sold several businesses, and I have been an entrepreneur for over 30 years. I once had a potential business partner who tried to catfish me, but I knew it was a scam all along. The right business partner can skyrocket you to success, while the wrong one … well, they’ll have you asking yourself how to hit the rewind button.
Here’s the deal, picking a business partner isn’t that different than choosing who you get married to — and sometimes, it even feels like a bigger commitment. You need trust, communication and a mutually shared vision. But you also want to avoid bringing someone on board who will drive you crazy within the first week, right? Don’t worry, you’ve got this. Here’s how you can zero in on Mr. or Ms. Business-Right instead of Business-Wrong!
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