5 tips on finding the right business partner

Going into business with someone can be triumphant or disastrous, and like any relationship, finding the right business ‘significant other’ can make or break your business. A business partner can add incredible value, filling in skills and knowledge gaps you may not have and offer that often needed second opinion.

However, finding someone you can trust, who you can share goals with, is equally passionate about your business and you truly enjoy being around, is the tough part. Here are the things to consider when seeking a partner:

1. Communication

The ability to have open and honest communication with your business partner will be the ultimate success factor in your new business relationship.

Before diving into working with someone, set time to discuss things like what you aspire to achieve, how your roles will be split up, who will be responsible for what and where you see the business going in the future. In a small business, decisions need to be made quickly, so having clarity around the roles and responsibilities helps with decision making. And clearing up any discrepancies in your ideas, goals and visions, makes for a smoother ride from the get go.

2. 50/50 split

Nobody likes a colleague who works less and takes all the credit, and a business partner is no different.

Making sure you find someone who is willing to split everything evenly between partners, this will make for a more peaceful work environment. This also applies to evenly contributing financially to the business, if possible. Sharing the time and effort for setup, daily tasks, financial, legal and business growth responsibilities will decrease the risk of creating a hostile work relationship. So you want to know your new partner is on board with sharing all tasks before it’s too late. And if you think there are still vital skills missing, or are thinking of having more than one partner, that is ok too. Companies like Airbnb, Uber, Pinterest, of course SEEK, and many more have had three founders.

3. Share morals and ethics

You want to find a business partner who aligns with your personal morals and ethics.

Starting a vegetarian café wouldn’t work if your business partner decides they want to start selling meat products a few months later. Make sure you know who you are going into business with and what they value in life. Try working together or even travelling together to understand all the little quirks you may not have otherwise known about your business partner, especially if this person is a close friend.

4. Skill set

Having skills, knowledge and networks in common is great for business, however if the skill sets complement each other, it is even better.

One person may be great with sales and networking, while the other is excellent with numbers and accounting. This will increase your small businesses success in all areas rather than just one or two. Variety of skills also helps in hiring the right staff further down the track. Consider reviewing each other’s resumes and identify any skill gaps you may need to fill before starting your new venture.

5. Co-founder agreements

Once you have found your ideal business buddy, don’t get caught out without a legal agreement. Chances are you and your business partner will disagree on something down the track. A co-founder agreement will help ease these troubles and ensure both you and your business partner get exactly what you are entitled to financially. And if things don’t go as smoothly as you have hoped, the exit options are much less painful if there is an agreement in place.