Who Is Your Ideal Business Partner?
A question perhaps not asked enough. You may not even put a lot of thought into this question. You should. I've talked with lawyers and seasoned entrepreneurs and the business breakup horror stories always link back to a bad partnership. So, it holds true, that cliche saying that I mention from time to time. Business is People. The Club E Network understands this and thats why we ask it in your profile. But how do you go about finding this "ideal" business partner?
I came across a blog by a fellow named David Alison who has a blog on blogger.com. He came up with a pretty good list of the Do's and Don'ts of finding a business partner. The summarized version is below... For the full version click here
"The Do's and Don'ts List
Here is my list of the things you will want to do, and not do, when picking a partner to start a business with:
DO: Choose someone that compliments your skills.
DON'T: Choose a partner because you really like them.
DO: Choose a partner that has connections.
DON'T: Choose someone that has different goals.
DO: Define how you resolve disagreement up front.DON'T: Worry about offending a potential partner.
DO: Check references.
DON'T: Compromise on the issue of ethics."
I've expereince many of these first hand. I luckily fell into great business partnerships with both my businesses. The logic David Alsion offers it correct. But I felt there was still something missing. So here are a few more Do's and Don'ts to add to the list.
DO: Communicate all the time about everything.
Be sure your parter is someone you can talk to about everything and that you both communicate well with one another. This may intersect with "Define how you resolve disagreement up front" and that is the point. Especially in a start-up, covering issues twice is never a bad thing. The worst thing that could happen is that both you and your partner forget something, even the smallest detail. Then you get sideswiped with a problem that takes you away from the big picture and current operations.
DON'T: Forget about the past.
During your first "interview" with your potential partner make sure you know what they've been doing up to that point. It's only fair that you know their history and work ethic from past business relationships. You, of course, need to pony up the skeleton's too.
DO: Just hang out with your partner.
A business partner is not just for business. They're people too and you need to make sure you can connect with them on that level. Take some time to kick back and relax with your potential business partner. When you're working together, the daily grind can sometimes put a lot of tension on your relationship. It's always healthy and fun to grab a beer and "dream" together on the big picture away from the office. So, make sure your potential partner is someone you can do that with.
DON'T: Leave structure to build itself.
Once you decide to work together, be sure you and your partner map out exactly all the process you need to work together. That includes, decision making, disagreement resolutions, and fiscal responsibilities. A very detailed operating agreement will cover all the in's and out's of your working relationship. It's a dirty job, but get it out of the way in the beginning and make sure you both agree to it whole heartedly.
Some may say they don't need or want a business partner. I say you can't do everything by yourself. These Do's and Don'ts apply even if you are working with a strategic partner who has no equity in your busines. All your relationships with business people, at any level, can cause your business to fail. Work with people you like and trust and you know will be there to see you succeed.
Merlin U Ward, young social entrepreneur and co-founder of the Club E Network .
DO: Communicate all the time about everything.
Be sure your parter is someone you can talk to about everything and that you both communicate well with one another. This may intersect with "Define how you resolve disagreement up front" and that is the point. Especially in a start-up, covering issues twice is never a bad thing. The worst thing that could happen is that both you and your partner forget something, even the smallest detail. Then you get sideswiped with a problem that takes you away from the big picture and current operations.
DON'T: Forget about the past.
During your first "interview" with your potential partner make sure you know what they've been doing up to that point. It's only fair that you know their history and work ethic from past business relationships. You, of course, need to pony up the skeleton's too.
DO: Just hang out with your partner.
A business partner is not just for business. They're people too and you need to make sure you can connect with them on that level. Take some time to kick back and relax with your potential business partner. When you're working together, the daily grind can sometimes put a lot of tension on your relationship. It's always healthy and fun to grab a beer and "dream" together on the big picture away from the office. So, make sure your potential partner is someone you can do that with.
DON'T: Leave structure to build itself.
Once you decide to work together, be sure you and your partner map out exactly all the process you need to work together. That includes, decision making, disagreement resolutions, and fiscal responsibilities. A very detailed operating agreement will cover all the in's and out's of your working relationship. It's a dirty job, but get it out of the way in the beginning and make sure you both agree to it whole heartedly.
Some may say they don't need or want a business partner. I say you can't do everything by yourself. These Do's and Don'ts apply even if you are working with a strategic partner who has no equity in your busines. All your relationships with business people, at any level, can cause your business to fail. Work with people you like and trust and you know will be there to see you succeed.
Merlin U Ward, young social entrepreneur and co-founder of the Club E Network .
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