It can be pretty tricky to find a suitable business partner. Issues of trust always come into the equation. But they must also have specific qualities and skills that meet your requirements.
Knowledge of Your Industry
There’s no point in partnering with someone who has no knowledge of your industry. It’s highly likely they won’t be able to reconcile decisions with data, which will make it challenging to run your business. Some knowledge helps. But it’s best to couple with experts. For example, suppose you own a low-income housing development business. In that case, when partnering with a construction insurance company, you can rest easy knowing they are knowledgeable about your sector. Then, the chances of miscommunication or disputes are kept to a minimum.
Easily Available Information
Business partners come in all shapes and sizes. You can partner with a single investor, a trust or specific commercial entities, such as insurance companies. Yet no matter what you choose, you must ensure you do your due diligence to ensure everything is above board. There are numerous reasons for this. At the very least, to protect your assets. But also to ensure you don’t inadvertently become part of a criminal conspiracy. Fortunately, any reputable partner will have an online presence with readily available information and will allow access to financial records.
A Suitable Business Partner is Always Available
A telltale sign that there is something wrong with a new business partner is their availability. It’s a common characteristic of shady individuals or companies to distance themselves from you if they are engaged in criminal activity. A good business partner will always be available like so:
- Easy to access via phone and text and always responds promptly.
- Has no issue coming into the office for in person or remote meetings and briefings.
- Doesn’t shy away from collaborating on documents and financial projections.
If your business partner is ducking your calls, especially if there is some irregularity, then it’s likely they are doing something they shouldn’t. Further, project briefings should be no issue for a legitimate entity or individual, and they will typically be open to all necessary financial scrutiny.
A Hands-On Approach
A business partner can be more of an investor in the background or part of the core team. Yet investors will usually make it clear they are only providing money. A genuine business partner will want your company to do well and offer a hands-on approach. As such, they will regularly request access to reports, offer guidance and show up at your office to provide assistance on projects. After all, it’s their business too. Further, if you partner with another entity, there will be constant communication if they are a legitimate enterprise.
Compliments Your Personality
One thing that is often overlooked when making decisions about partnering is the dynamic that will occur between all parties involved. One study has found that 4 out of 5 business partnerships don’t work out well. Therefore, it’s vital you carefully consider any entity or individual you wish to partner with. You need a partner that compliments your personality, sticking to the old adage that opposites attract. So, if you are more reserved, you might consider a partner who has no issue speaking up on your behalf and has your best interests at heart.
Finding a suitable business partner is more challenging than you might think. They will need knowledge of your sector, high availability, and compatibility with your personality.