When starting a business, a lot of people make the same mistake; they don’t realize that figuring out their finances should be just as high on their priority lists as choosing the right business partner. This is an error particularly characteristic of women who tend to partner with pals or family members without thought to whether the relationship can withstand the heightened responsibilities and accountability essential to every successful business partnership. However because women are such natural connectors, when business partnerships forged between females are well-thought out, they are often the epitome of what a partnership should be.
Truth be told, there are benefits to running a business by yourself. You’re in charge, giving you complete authority to take the company in whatever direction you like. You also don’t have to share your profits. But choosing a partner, while creating a need for consensus, nonetheless takes some of the responsibility off your shoulders. You’ll not only have help, you’ll be able to capitalize on another person’s skills.
Here are some essential points to consider when choosing a business partner:
Don’t Be Emotional: While it may sound cold – be calculating. If you’re considering partnering with a friend, it is essential that you scrutinize her skills without being swayed by the fond memories you share. A partner must be as excited, driven and dedicated as you are.
Take Your Time: This can be tough. You’re anxious to get started. But even if you’ve got financing and business cards, getting to know your business partner cannot be rushed. In the long run, launching when you can practically finish each other’s sentences is well worth the wait.
Choose Someone Complimentary, Not A Carbon Copy: Resist the temptation to choose a business partner who is exactly like you. Your vision for the company and your core values should mesh, but other than that a good partnership involves two people who bring different areas of expertise to the mix. If you are both wildly creative but unorganized, who’s going to balance the books?
Write a Partnership Agreement: If you’ve chosen a partner you trust and respect, be careful about complacency. You still need a formal partnership agreement dictating everything from how you’ll raise money to how you’ll divide responsibilities. A non-compete agreement is wise as is a buy-sell agreement. Partners, especially women, sometimes skip these necessities for fear of hurting each other’s feelings. Do not get tripped up by your emotions. A partnership is above all else a business deal.
Be Clear About Responsibilities: The importance of clarity when it comes to roles and responsibilities cannot be over-stated when choosing a business partner. Decide how best to capitalize on each person’s talents then assign responsibilities accordingly. Be crystal clear or you run the risk of misunderstandings and resentment down the road.
