The following is a guest post by Brian Stumbaugh, Digital Marketing Manager at The Startup Garage.
Few things are more important to your business than the people you
work with. This couldn’t be truer than when teaming up with a business partner
or partners. As you’re evaluating this critical decision, here’s what to
consider before choosing a business partner -- and what red flags to avoid.
What to Look For:
Talents Different Than Yours
The Yin and Yang concept fits well here. Your strengths are
powerful and why you’re in this position, there’s no need to double-up on
something that’s working. If you’re a dreamer with endless ideas, someone
focused on the present business and technical workings may be a good partner.
If you’re shy, a people person with an outgoing personality might be just right
for you. Evaluate your talents and find a partner who is a compliment to what
you’re bringing to the table.
Time Commitment
You and your partner don’t need to spend the same amount of time
on the business to be successful. Yet you do need to come to a mutually agreed
understanding on what those time commitments will like. Have that conversation
early. How many hours do they expect to spend on the business per day? Will it
be more or less than your expectations and are they alright with that?
Commitment to the Business
It doesn’t matter what industry you’re in, your partner’s
commitment to the business must match yours. They should have the energy and
the desire to see the business grow, and it is only commitment and dedication
that will get it to the level of success you’re looking for. Like anything new
with potential, in the beginning their excitement over the possibilities may
make it seem like they are as committed to the business you are. But after time
passes and the day-in, day-out drudge of running it can squash any kind of
enthusiasm.
What to Avoid:
Distracted with Home or Family Life
These can be touchy questions to ask, but they are critical. Find
out if they are dealing with significant life changes or family issues before
going into business with a partner. Situations like taking care of an elderly
parent or plans to have children soon, they could be distracted and lack the
time and availability originally intended. Have conversations with their family
- while the partner may say their spouse is 100% behind the business endeavor,
this may not be entirely true. Find out from the source and don’t be afraid of
getting brutally honest.
Negative or Lacking References
How is your potential partner perceived in the community says a
lot about how they will behave down the road. Find out how former colleagues,
employees or superiors feel about the person. Did they enjoy working with or
for this individual? If the potential partner says they have a lot of
connections, find out how real those connections are, and if they are more than
just a pat on the back and nod of acknowledgement.
Unwilling To Put It In Writing
A handshake is fine in some situations, but not this one. You may
have known this person since childhood and trust them wholeheartedly, but money
and business has a special way of changing people and situations. Set
expectations and agree to them. What are the consequences when said
expectations aren’t met? If they aren’t willing to go through this critical
step with you, that’s a clear dealbreaker.
Getting started in a new business is an exciting adventure, and can
be even better when going in with a partner. Your gut feeling on the person
will only get you so far. Find out if the person you are considering is truly
the right fit, which will help position your business for success.
Brian Stumbaugh is the Digital Marketing Manager
at The Startup Garage, a startup business consulting agency located in Encinitas, CA. The views expressed do not necessarily reflect the views of VentureDeal.