Building a Successful Business Partnership: 8 Essential Tips
Startups only succeed with the right management. You might want to bring somebody else in to help with this. However, signing a business contract between partners is a big step. Here’s a guide to establishing a business partnership that fits your new company.
Finding a Business Partner
If you’re setting up a new firm, it always helps to find a great partner. Local networking events in your sector are a great way to link with possible candidates. Platforms such as LinkedIn will also make it easier to find people with specific skills.
In the computerized age, quite a bit of our systems administration happens on the web. However, business cards remain a significant device for making enduring prints and facilitating significant associations.
But it isn’t as simple as searching for local experts. Before committing to someone, you’ll have a lot of questions about their work style and more. The answers you receive may be what secures your startup’s future success.
Eight Tips for Choosing a Startup Partner
The wrong business partner could crater your whole idea. Healthy debate can help a company thrive, but actual conflict is something to worry about. Ensuring a solid business partnership is crucial for long-term success. Here are eight tips for finding a partner you can trust.
1. Find Common Ground
You and your partner need an aligned vision. You two should have the same priorities and even core values. They can’t just be a helping hand; they must have passion for your ideas.
This will help them enforce your company goals, even when you aren’t in the room. They might even give you a vital reminder of the company’s direction if your focus drifts.
2. Compare Skill Sets
You don’t want someone exactly like you. It’s best to have somebody whose skills balance your own. If you’re more of a developer, find a partner who can handle the day-to-day management.
Their experience should fit what you lack. Ask yourself what you’ll want help with. This needs to be a key priority when searching for skills. Use your partner to fill key operational gaps.
3. Check Compatibility
Healthy debate helps any company thrive. But you need to get along with your partner. This isn’t a shallow boundary to have. If you don’t like each other, the partnership (and startup) will suffer.
You must also have similar expectations about the company. This includes an understanding of the firm’s long-term development plans. Do they have a work style that could clash with this?
4. Resumes Aren’t Everything
Your partner’s success at another business won’t guarantee success with yours. You shouldn’t assume they’ll be perfect. You’ll still need to check their work and make sure they fit the bill.
Someone who looks perfect on paper could still be a bad fit. Do they have specific experience in your industry? This is often a lot more important than a partner’s raw business acumen.
5. Avoid Professional Partners
Similarly, you shouldn’t hire somebody who specializes in being a partner. This splits their focus across several firms. It also means you won’t get a partner who treats your startup as their own.
They can also offer little value beyond broad management skills. Will they challenge your ideas, for example? Or will they act more like a silent investor and leave you with all the work?
6. Compare Communication Styles
Everyone communicates in their way. Their way of doing this must fit your own. This might mean choosing someone who keeps you in the loop about every move they make.
Alternatively, you may want someone relatively hands-off or independent. This will help you stay focused on your duties. Effective communication is vital for a successful business partnership. If possible, find ways to meet their communication style halfway.
7. Discuss Finance Arrangements
How are you and your partner splitting the fees? What factors go into this split? You must make sure you and your partner agree on this long before signing a partnership agreement.
If it means a better partner, consider paying more. Your priority here cannot be your own bottom line. You have to focus on what’s best for the business and its long-term success.
8. Check Their Background
Go deeper than simply looking up your choices’ credentials. Carry out a full check, if possible. It’s worth knowing if they have skeletons in their closets or if there are any controversies about their name.
For example, you might learn their last startup dissolved. If this is the case, could you trust them to manage your own company?
Why You Need an Airtight Business Partnership Contract
Even when you want to launch the startup right away, you need legally binding paperwork. This is your only way to guarantee a stable partnership. Make sure you use a pre-made online template. This comes with every necessary field, such as exit agreements and ownership rights.
Ultimately, you can only sign this when you’re sure about your new partner. This isn’t an easy decision. Even with all the tips in the world, you’re still taking a risk. However, doing your research and avoiding common red flags is always a step in the right direction.