Whether you are just starting up your new business or you have reached the point of expansion, you may want to take on a business partner. But before you ask your ask your best friend or sister-in-law to take on that role, consider what traits are most desirable in a business partner.
While there is nothing inherently wrong with choosing a good friend, relative or in-law, those people may not be the best choices. Below are some tips for choosing a good business partner.
They’re reliable — and trustworthy
You think you know someone really well, and then they go and do something that goes against all that you stand for. While there is no way to protect yourself completely against a dishonest business partner, consider any past incidents that might have seemed minor — cheating at a friendly poker game, filling out fake rebates — anything that would indicate they are less than 100% honest.
You have different but compatible skills
If you’re the gregarious type who could sell ice in a snowstorm, you might want to consider a partner who is content to be in the background balancing the books and paying the taxes on time.
They’re financially sound
Choosing someone who is fiscally responsible and not overloaded with debt removes any temptation for them to dip into the till. It also shows that their money management skills are sufficient to run the financial aspects of your company.
You share a vision and passion
Both of you should share a similar vision for the business and have the passion (and time) to see it through to fruition. You don’t need to be in lockstep on all aspects, as it can be good to bounce different ideas off one another. But you should both be inspired and excited to promote your new company.
Learn all you can before you begin
When you decide to take on a business partner, it’s always prudent to gather all the information you need before making any decisions.