If you are interested in developing a business partnership, it’s important that you know what to look for in a good partner. A business partner is invaluable if they’re the right person for the job, so choosing the right person does matter.
Business partners are people who co-own a business with you. This is essentially a person who will share the role of being a CEO and owner at the company, so you want to be sure that they are someone you can trust and rely on.
Building a quality business relationship
Since a business partnership is a legal relationship, you need to be sure that you understand your role and that they understand theirs. You should have a contract that both of you agree on.
Both partners should have their own roles in the business, too. For example, you may be great at marketing and bringing in new clients, but your partner may excel at financial aspects of the business. Understanding what you both bring to the table will help you stay on the right track and avoid conflicts over who is supposed to do what.
A good business partner invests as much as you do
A business partnership is a two-way street. Co-owners should be investing the same amount of time or money into the business. If they cannot invest the same amount of money up front, then it is smart to have the ownership adjusted in the contract. For example, for 70% of the startup costs, owner 1 receives 70% of the business.
What are the benefits of a good business partner?
A good business partner helps in many ways. Some of the reasons it’s beneficial to have a business partner include:
- Having greater business opportunities because of sharing your networks
- Having a partner to help with the initial workload of starting up the business
- Sharing your skills and education
- Getting a new perspective on problems and potential solutions
Getting the right business partner may require you to collaborate with friends, past or present colleagues or to look for someone to work with at an industry event. Make sure whoever you find to work with has skills that complement yours and that you both work together well. If you decide to work together, look into a solid contract to protect your interests.
