As you run your small business, think about all the different people that come into your life on a regular basis. You have employees, vendors, customers, those pitching their products, and many others.
With that in mind, how do you know if all these people have your best interests at heart One of the ways to go about learning more on someone is by background checks.
No, you do not need to spend time on a background check with everyone entering your life.
That said doing some research on those who will matter to you is not a bad idea.
What Should You Look for in a Background Check?
If you move forward with background checks, what exactly should you be looking for Well, the answer to that depends on how these individuals will incorporate into your life.
Here are a few examples:
- Vendors – Hiring the right vendors to assist your small business can be a tricky proposal at times. While you may very well be on a limited budget, you still want quality products for your business. The best thing to know about vendors is if they’ve had any run-ins with the Better Business Bureau (BBB) and others. Always know who is supplying you with the products you need to run your company.
- Customers – Often, you’re not going to delve into your customer’s backgrounds. Sure, you want to know what their spending habits are etc. but that is often going to be about it. On the flip side, if you’re a gun shop owner, you want to do background checks on those purchasing weapons. If you spot any red flags, make them know so the wrong individuals do not end up with weapons.
- Partners – It is not uncommon for small businesses to look for partners. That is even more the case when financial times get tough. That said a background check of a potential partner is but one of the things you want to do. Even when you find out about their background, you must decide if working with them would be the right call.
Among the factors to consider:
- Who will have primary control of the business or will it be 50-50?’]
- Can you see yourself having joint ownership with one or more individuals? For some owners, sharing the fruits of their labor with others is something they’d rather not think about.
- Will working with another manager or managers be an issue? Some individuals will find over time that their managerial styles will clash. Always iron out ahead of time what your expectations are and understand their goals too. By knowing all you can about how they’ve run their companies, you will be better prepared.
By doing a background check when you deem it to be appropriate, you are much more likely to find out what you need to know.
In some cases, that information can prevent you from making a bad business decision.
To set your brand apart from competitors, knowing those you are working with is worth your time.
About the Author: Dave Thomas covers business topics on the web.