How to Find the Right Business Partner

Finding the right business partner can feel a little like dating. In the beginning, there’s excitement, anticipation and sometimes disappointment when you don’t quite click. A business relationship is one of the most significant connections in your life, so getting the right partner makes a material difference to your best business outcomes.

There are a few boxes to tick on any potential business partner to ensure your professional relationship is a long and successful one. We’ve put together 5 things to look for in your ideal business partner.

HAVE A SHARED VISION

Making sure you’re on the same page is critical for the success of any business structure. You want to have a shared vision for how you see your business today, tomorrow, and into the future. Beyond sharing a vision, a solid business relationship is based on four main pillars. Firstly it’s about having aligned values and sharing the same ethics. By sharing similar values as partners you are more likely to consistently agree on decisions, which makes business a little easier.

Next, is your commitment to work - do you have the same understanding of the work involved and the same determination to put in the hard yards? Thirdly is trust. Trust in your business partner, trust in one another, and trust in the systems and processes you establish for your business. Once you have the shared vision, aligned values, commitment to work, and trust, all that is left is to have the right documentation in place.

HAVE A PLAN B (IN WRITING)

Things in business as in life don’t always go to plan. As business partners, you need to have a backup plan in case things change. This includes having a written agreement in place if one of the partners decided to depart the business or sell their shares.

At the outset of your relationship be sure to set up a plan for what would happen if the partnership, company, or business changes or dissolves. This could be outlined in your agreement which should include the respective rights and responsibilities of each partner as well as items like business practices, who has authority over what, and agreements on sharing of profits or losses.

Any business agreement should also include a dispute resolution process (and help to prevent disputes) and legal steps in the event of the death of one partner or even the addition of a new partner to the business.

HAVE A STRONG CONNECTION

It goes without saying that you will need to know any potential business partners well before taking the plunge into a new venture. This is potentially the person or persons you will spend most working hours with, so having a strong rapport is important.

You should also have a clear understanding of each partner's role and responsibilities, but also what an ideal workday entails, and how to best work together. You also don’t want any surprises down the track -so knowing as much as you can about your prospective partner, director or shareholder early on gives you the best chance of business relationship success.

TREAT IT LIKE A MARRIAGE

A business relationship is really the financial equivalent of a marriage -a legally binding commitment to another person or persons. Once entered into a business relationship can be really hard to get out of, so don’t rush to partner up. There’s no such thing as a business annulment!

Like a marriage, each party needs to have clearly defined roles in the relationship. No one wants to be in a business relationship feeling that they’re carrying the entire business. Be clear on the priorities and goals for your business and use clear role descriptions to keep each other firmly on track.

Looking for further advice on business partner arrangements? Book a free consultation with us.