Is your business missing something? You don’t seem to have all the pieces? The answer is simple…get a business partner.
Partners can bring skin to the game that you would not get otherwise. You are one person with a finite number of skills, capital and resources.
Business partners can fill some voids, add value and maybe even bring some working capital to the business.
Here are 5 reasons a business partner will help launch a company and the things to look for:
1. A partner brings added value to the business.
– A second set of eyes and ideas can widen your perspective on building and growing strategies. (It can be difficult to see things from different angles as a solo-preneuar.)
2. A partner can bring needed capital to the business.
– Finding capital can be difficult. A partner that shares like values and can contribute monetarily is a viable strategy. (Be sure to hammer out the legal particulars, expectations and percent of ownership BEFORE any deals are struck or money changes hands.)
3. Partners can help create an exit strategy.
– An exit strategy for all partners should be discussed. It might seem like putting the cart before the horse. But it can provide for opportunities as well as prompt discussions on what to do with the business longer term. (This conversation can also provide insight to prospective partners’ intentions.)
4. Partners have additional talents/skills you may not have.
– You probably aren’t good at everything. Having a partner with complementary skills can push your business in directions you may not have been able to do alone. (Don’t acquire a partner solely based on the skills you feel they have that you do not.)
5. Supportive partners keep you energized and challenged.
– The right partner can be a source of support that can make or break a business. Find someone that challenges you to do better. The business will benefit. (Court a partner for a while before offering them a piece of the pie. Get to know their strengths and weaknesses and how they deal with tough situations.)
For as many benefits as there are for having a partner, you should do the required leg-work before cementing any deals. Partners should be considered permanent. It’s far easier to go INTO business than it is to get OUT of business, with a co-owner.
Get to know them on as many levels as possible. What makes them get up in the morning? Why do they want to be a part of your company? What have they succeeded at or failed at in the past? Are they financially able to support a business?
I once heard the suggestion to watch how someone treats a waiter or other service type employee. It might be one small way to see into how they might act in other situations.
Check out my next post “5 Reasons You Should NEVER Have a Partner”
Bottom Line: Get legal counsel on how to draw up the agreement (money and responsibility-wise). It will be cash well spent!