How to pick a reliable Business Partner
One of the biggest reasons that businesses fail in the first few years is a disagreement between the founders of the business. Here are some tips on picking a business partner that are inspired from a question that was asked to Larry Weintraub at Digital Threads.
Do not ignore the red flags of your partner
Often times entrepreneurs are so excited to get their start up off the ground that they look over the flaws in their partner. They will overlook major personality faults that could cause the company to fail in the long run because they are currently worrying about the present. This mindset will lead you to failure; do not get caught up in this idea that your partner will be perfect. You will need to take time and reflect on your decision of a business partner and if you have doubts then do not go into business with them. You can find a partner who will help with your start up eventually, so do not settle for the first one that comes to mind.
Do not do business with family
While at first it might sound like a great idea to go into business with your brother or cousin, you should defiantly reconsider before doing so. While there will be an established trust between you and your family member, there are also deeper issues. Siblings may not be able to let go of rivalries they have had for many years or the oldest may feel like they have to be in charge because that is how its been in the family structure.
Another reason is that the constant contact that comes with family will cause issues that aren’t business related to gain traction in the work place. This is a classic case of the Seinfeld “Worlds Collide” Theory. As a entrepreneur you have to keep your work and your home life separate and cannot let one affect your interactions with another. This is impossible if you are working with a member of your family.
“My business partner was not my best friend.”
This statement made by Mr. Weintraub can not be stressed enough. The qualifications that make someone your friend do not equate to a good business partner. Once again you will need to step out of the flurry of emotions you are having about your start up picking up off the ground, and think about why you are making this decision. Once again, picking your best friend can cause a set of dramatic problems that have no place being in your start up. The last thing you need while balancing this company is worrying about if your decisions will challenge your friendship.
“You are going to get burned once or twice, but go for it”
Even if you listen to all of this advice your business partner may not work out. They may try to take over your idea and push you out, or they may betray you and steal the company out from under you. Things like this happen to everyone and you cannot let a single bad occurrence ruin the rest of your life. Things like this are the inherit risk you have as an entrepreneur and as someone who is putting trust in another human.
If this does happen to you do not quit, but learn from it. See what caused this negative situation and learn how to make sure it never happens again. This is similar to the mantra of skateboarders that “The skater who never falls never learns new tricks”. Think of this experience as a loss of naivety and learn that people are not inherently good. Its better that you learn this in college then have your career destroyed later in life because you put too much trust in someone who “would never harm you”.
Hopefully this article will give you some insight into what it takes to find a great business partner. If you have a story of a successful partnership or one where it failed I would love to hear about it in the comments, or feel free to contact me.
