As your business grows, there may come a point when you need to consider the possibility of getting a business partner. Having a business partner can be very beneficial to your company, as he or she can provide additional funding, expertise and experience, as well as ease the burden of decision-making. However, if you select an unsuitable business partner, you may experience serious problems that can jeopardize your business.
Here are some useful tips on how to choose the right business partner….
Define Long-Term Goals
While your prospective business partner may be interested in the type of business you own, he or she may not share the same vision and values as you.
For instance, if you own a restaurant and wish to turn it into a 100-percent organic restaurant in the future, you may not be able to realize your vision if your partner is not supportive of it.
As such, you have to compare your potential partner’s vision and values with your own before you agree to the partnership.
It is essential that you do a background check to find out whether or not your potential business partner is financially and legally trustworthy.
If he or she had trouble with the law or serious financial problems in the past, it is best that you do not pick him or her. A person who has been proven to be incompetent in managing finances may undermine your company’s ability to stay afloat during tough times.
Before you enter into agreement with a prospective business partner, ask him or her to provide a list of references that you can contact.
Evaluate Qualifications and Skill Sets
The best thing to do is to choose a business partner who has extensive knowledge and experience in your industry. Such a partner will be able to offer valuable ideas and advice, and help you make better informed decisions.
Try to get a business partner who has skills that complement your own, so that he or she can handle tasks that you are not particularly adept in. By doing so, you can build a stronger and more well-rounded team.
An example of such a partnership is mentioned in an article entitled “Picking the Right Partners: LessAccounting“. According to the article, WePay chose LessAccounting as its first invoicing and accounting software partner several years ago to assist with its financial tasks.
Conduct a Trial Run
Even if a candidate seems like the perfect business partner after thorough evaluation, you will not know whether or not he or she is a good match until the two of you start working together.
Ask your potential partner to work with you on an existing or new project, so that you can determine if the two of you can work harmoniously and productively together.
Getting a business partner is an important decision that can have a big impact on the future of your company.
As such, you have to make an extra effort to ensure that you get the perfect partner.
About the Author: John McMalcolm is a freelance writer who writes on a wide range of subjects, from social media marketing to Cloud computing.
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