This chapter might have been taught to many of us in our commerce class. But like it’s always said, a theory is different from practicality. The real world has several variables. Variables that cannot be put in theory, but nevertheless, they exist. One such decision where you need to take into account all these variables is deciding a business partner. Appointing someone as your business partner means not only sharing profits but also sharing, ownership, risks, time, responsibilities, success and so on. For a businessperson, their business is their life and having a business partner is like giving them a part of life. Not an easy decision to make. Therefore, here are some tips to make a more informed and confident choice:
It is best to choose someone with whom you already have a working experience and is probably from the same industry. Before, choosing someone from the inner circle, you need to primarily observe that person. Their strategies, their creativity, amicability at a workplace and their social circle. The first thing that must be observed is their reliability.
Once you have one or two people in mind, speak to them. If possible do you directly offer them the partnership. Speak to them about stuff other than business and look for cues that can be potentially red flag the person. So, have an open and healthy chat. Tell them what you are offering and what the benefits and risks they may face. Do not try to influence them, let them decide.
3. Keep Away from Sycophants
You will also find people within your circle where some sycophants who try to win your favour by buttering you each and every day. Only remember that you are running a business, and it’s really necessary for you to stay stoic and unbiased in your judgement. Choosing a partner on the grounds that they are nice to you, can only end you up in muddy waters.
4. Separate Your Personal from Professional
Choosing someone as your partner just because they are your childhood friend, colleague or family member will prove disastrous. What former relationship they have with you is completely irrelevant. Remember that you are running a business and not a joint family business. Choosing someone for something other than their integrity and talent can sooner or later throw you into troubled waters. Divide your personal life from your career. You have various other opportunities to help them out in some other way, but giving partnership directly would seem irrational.
5. Strategic Mind and Dexterity Must be Considered
A partner should be and symbol of efficiency. They must complement you and even supplement you when needed. They must have the mindset for quick decision making and strategy formulation.
6. Look for Goodwill
Other criteria to look when you are partnering with a person is their goodwill. The amount or gravity of the goodwill they carry along holds a really tough competition in the business sector, because, that person holding the goodwill is a boon to the firm, and much better than hiring someone with intelligence but a notorious reputation.
The above principles will help you chose a partner irrespective of your industry and sector. Whether you are a startup or a new venture with strong backing or a law firm or consultancy. Always keep the above principles in mind.