5 checks to choose a business partner

Need - Most businesses or startups with big vision would require multiple partners to share the common vision, risks, toil and rewards.

Having seen successful partnership work for some businesses and having failed at it twice, below is my take on what to look for while selecting a partner for a business.

Shared vision and values – while this is the most important factor, it is the basic first criteria to even consider a partnership with someone. It is more of a hygiene factor to decide whether to think more about the idea. Your best friend may not necessarily be a good partner. S/he may remain a friend, philosopher and guide to bounce off ideas to, but not necessarily a business partner. I learned this the hard way in spite of cautionary words from family members.

Actions must match the Words! – watch if the actions of your potential partner match the words s/he says and commitments s/he makes in most cases. If there is a gap, you are better off finding someone else. The sooner you decide, the better it is. I wasted years in giving benefit of doubt when person’s stated intentions did not translate into actions. Someone once said … "the road to hell is full of good intentions!" :-)

Paperwork is required for successful business even between best friends – We had a verbal understanding with my partner for years till we finally decided to amicably part ways. So, it never really happened. In friendship, we tend to take paperwork lightly and that hurts later. Good paperwork can potentially strengthen the friendship, even if you agree to disagree.

Must come to work with you every alternate day if not daily – if your potential partner has another day job, and can only contribute when s/he is ‘free’, s/he can’t be a business partner. S/he may at best be a minority stakeholder. Your partner must come to work with you daily in the business full time. Period.

Must help you sell – your partner must contribute in bringing customers and orders for the company, some way or the other. For everything else, you can potentially hire professionals or contractors without diluting equity. I would offer free equity to a good sales person than to an investor with money!

Partner’s spouse is not the partner – sometimes your potential partner may say, since s/he can’t officially be a partner in another business, s/he will have her/his spouse as a partner in the business on paper, AVOID! Let’s accept, the spouse is a different individual with her/his own intellect, thoughts, ideas, feelings, preferences, styles, liking and everything humans have!

Your family must like her/him – though your family may or may not have a say in the business, they have a say in your life, as their lives are linked to yours. So, it is equally important that both your families also like you and the partner.

Also, you must contribute more than you expect to also keep your partner motivated to contribute.

These points may not guarantee a successful partnership but can certainly help avoid failures.

Thank you for reading. Shall highly appreciate your feedback.