Business Partners: Things to Consider Before Choosing your Next Partner
Getting into a business partnership is almost like a marriage. You will be working closely with this person for quite a long time, hopefully. Trusting this person with your finances, your hopes and your future. Breaking a contact with your business partners can be quite costly. You have to ask yourself and your partner some tough questions.
What are your expectations out of a business partner?
Find someone who balances your personality. If you’re shy, you may want a partner who is more extroverted. If you’re detail-oriented, you may want someone with creativity.
What are your partner’s expectations?
How much time will they be able to commit to the business? Are they seeking a business opportunity that they can sell in a couple of years? You and any potential business partners should be on the same page.
Is your business partner going to be as committed as you are?
Many partnerships start off very casually, with fun and excitement. Building a business isn’t always fun. The day-to-day routine can weigh you down. Will your partnership withstand the hard times?
What is the person’s financial situation?
Financial commitments often shape decisions, even when it’s subconsciously. You should know your business partner’s financial status and situation.
What about secondary commitments?
If a person is taking care of an elderly parent or has a new child, those commitments can often distract them from a business venture. Be honest about potential issues that may take time away from the business partnership.
- How has your potential business partner managed business when times got tough?
Look at their past decisions on making payroll or paying taxes. How they’ve managed stress in the past is a good indication of how they’ll manage it in the future.
Is your potential partner asking you the same type of tough questions?
If you can’t be honest up front and discuss expectations before a contact is signed, then it could mean that they aren’t interested, their expectations are too high or they just don’t have a clue about being in business.
Find lending opportunities at Artemis Commercial Capital when you contact one of our team. If you’re not ready for a business partner, but need working capital, let us help.