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How to pick an effective business partner

On Behalf of | Apr 2, 2024 | Business law |

There are billions of potential business partners out there. While you are unlikely to get the choice of that many, you still have ample options.

So, how do you narrow down your search and find the right one?  Here are some tips to help you choose:

Do you really need their help?

Is it their contacts, their money or their knowledge of a particular topic that attracts you to them? Whatever it is, consider whether you could replicate those things yourself. For example, could you ask a bank for a loan rather than taking on a partner to invest? Could you upskill yourself via evening classes to learn the coding skills you need? Or could you just make an effort to network more and make the business contacts they have?

Are you happy to give things up to have them onboard?

Any business partner will want something in exchange for joining you. It might be a share of the company, which would also mean a share in decision-making and profits. Or it might be the ability to use your skills and knowledge to promote their own products through the business. Whatever it is, you need to be sure you are willing to accept it. Going from running things on your own to having to consult with someone can be a big change, and it’s not one everyone enjoys.

What will happen if things do not go as planned

Business partnerships often fail, so you should assume yours may, too. Hopefully, it won’t, but by putting plans in place in case it does, you reduce the chance the breakup becomes a disaster for you and your business.

If you think you have found someone to join you, be sure to get legal help to document things appropriately.