Guide To Choose The Right Business Partner
The business owners, who establish their own business with a motive of getting their investment multiplied after a certain specified amount of time, are always in search of joint ventures. Hence they seek out to find the kind of business partner who is willing to work, invest and grow together as they themselves do. But the business partner that you choose for investment and profit sharing purpose should be done with utmost care and patience. It is seen that the business partner is always responsible for making the management decisions in your company owing to the investment that he subjects your business with. In this article, we shall discuss the key considerations that we need to make when choosing our business partners.
The business owners have to pick up business partners for many reasons. They resort to help, support and some encouragement from their very own business partners which is lacking when they run the business alone. It?s like having a partner for a work out. You do not want to work out by yourself but would love to work out in case someone else accompanies you and motivates you to do the same. Here, the business is not very different. You are able to lift more weight when someone is at your back to keep a watch on you and motivate you deeply to work out and try a little harder.
It is an interesting and fascinating challenge to pick up a business partner. This is felt a lot when you just step into doing a business. We all know that finding a right kind of life partner and getting married is stressful. Imagine what the case in the situation like this is. This is because you have to spend nearly double the time working with your business partner than you can ever spend with your partner in life. It should be noted that this isn?t a lot of quality time that is spent effectively.
In the section that follows, we shall discuss on various dos and don?ts that should be followed in general life while choosing a business partner. Here is the list of the things you will want to do, and not want to do, when making a decision as important as choosing a business partner:
Business partners? skills
Choose a business partner who has skills that compliment to that of yours. In order to make a business successful, you need to have a true businessman sense and a lot of skills that a regular business man has and those which come with an experience of owning and managing a business is to be needed to be developed. No matter how expert you are in a certain field and you might have all the relevant skills, but it is bitter but good to accept that the skills that you have are too less compared to what you don?t have in the market of today?s world. You might be a bright person and have an ability to learn very quickly and without any efforts.
If we analyze any form of business, it has two critical areas of expertise and management. They are sales or marketing and goods or products or services sectors. Someone is bound to sell the product for which you might have demand today or tomorrow. And someone is in the business of providing the right kind of service as you desire. You can lend your focus on one or more areas but generally, these are the two biggest areas which cause reluctance for the new and emerging entrepreneurs to invest huge chunks of money and thus start a new business.
Partner of your liking
Do not choose a business partner because you really like him and fond off him. It is a very wrong decision to make to choose friends to choose a business from. It is not that you are picking friends, but it for the survival of your life that you have established your business. It is not that a person if great and happening and is someone to be around with you, you are not obliged to choose him as a business partner. It is not at all going to help your business to be successful. You should set up a task of shortlisting people to tie up with. It is very essential that the business partner that you are going to choose will add some value to your business. Only then it is sensible for you to go with him. It is the experience of many people firsthand to encounter a major failure in business; perhaps the one from which you cannot recover if the choice of the business partner is not appropriate. This is because a wrong choice can lead to a major complication in the end.
Partner with connections
Choose a partner with contacts, networking is a great tool and perhaps a power in business. If you can find a business partner who can do you good by fetching more customers for you and thereby increasing your sales, then you might consider choosing that particular partner. Same is applicable when your business partner can fetch you goods and services for you on credit basis. Maybe your new business partner has a sense of recruiting right kind of employees for you. Here, as you can see, your new partner is doing much more than actually working with you. What is being done here is expansion and growth to your business. In addition to this, now you have an entire network at your disposal to be dealt with.
Partners with different goals
It is very important that you choose partners such that they have the same goals as you do to expand your business and make profit to lead a comfortable life in the future. This is quite obvious. But a mistake like this is not very uncommon. He owners who own the business get very excited in the beginning to start off their new business. This excitement comes in the way of their future growth. It is very important that you choose a business partner who shoots in the same direction and target as you do. You will avoid the tension that is supposed to come between you and your partner due to some disagreement in the future.
Resolution of disagreements
You have to define as to how be you and your partner going to resolve the conflicts that arise between you and him. This decision should be made upfront. This is the step in business that is to be taken even before you finalize being partners. There is bound to be disagreement and conflict between you and your business partners due to various factors like experience, ambitions etc. This is unavoidable by both the parties. If you are arriving at a decision as to how you are going to resolve your conflicts in the future, then you both should mutually agree to it. Everything is to be done in writing. If you want to make a partnership which is equal from the point of view of the revenue or the income of cash into your company, please make the share ratio 50.5/49.5 splitting. Someone is to be upfront in resolving the conflicts between the two parties.
Offending your partner
You should not pay too much unnecessary heed towards offending you partner. It is the excitement of starting a new business that makes you walk in a way that is gingerly around things. These are the things that you are concerned with being with a potential partner. Do not get scared of your business partner or hide your real personality to be brought in front of your business partner. This will make you repent in the future. Stop doing all that and get your real personality out in the open. Explore something that you see in a partner?s history that might adversely affect your business. It is a problem that the partners are not the employees. If the employees do something that is not good for your business, then you can right away fire them. The same case isn?t with the partners because of the investments they make and the rights they have in your company legally.
When someone offers you hand in business to have a joint venture and do the business together, it is very important that you check out the references of that person. Ask for and call like five persons that have worked with this person under consideration and ask about the character to that person whom you are speaking with. References can be taken from college professors and teachers in case you and your partners are young and without that much experience.
Do not compromise on the issues like when it comes to ethics. Do not overlook ethics if someone has a pleasant personality, skill set and a good set of references.
Thus, in this article, we have discussed the various aspects of partnerships to be formed between the two individuals and provided you with a guide to choosing your business partner.
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