How to bring in a Business Partner for your biz?

Who could be your best business partner?

Much has been written about the benefits of having a proactive partner in your business. The benefits of having a synergic partner on board can act as catalyst to take business to the next level. While there is no denying the positives of having a good business partner, the opposite could be detrimental and could possibly ruin all the good work of previous years.

Let us take a look at some of the traits that one needs to look at before bringing a partner on board.

Get the Timing Right: While it may be right for startups to have a business partner on board even in the planning phase, it may not be too late any time for existing business. Most business organizations feel the need of a proactive partner while expanding business beyond their geographic areas into new territories or brainstorming potential joint venture proposals. It is imperative for business organizations to get the right partner on board at the right time.

Finding the Right Partner: Start up workshops can be a very good starting point to search for their potential partners. A lot of workshops bring on board a host of experienced individuals from various industrial sectors, providing a perfect background to interact and getting a close view on the thought process and past business experiences. There are online sites also, where one could shortlist partnership opportunities.

Have a Personalized Interactive Session:  After shortlisting potential partners, business owners must focus an interactive session. Keeping in view the current market strategies of the organization, business owners need to clearly define roles for each partner that could lead to a good working environment with mutual respect and trust.

Qualities to Look in a Business Partner:

Synergic Alliance: Synergic alliance between a business owner and his or her business partner is one of the most significant factors. A partner just like marriage works on mutual trust and respect.  Any lack of mutual trust between the partners can negate all the good work of the company and can harm its reputation. Communication holds the key to keep in check any misunderstanding making sure that all partners are on the same page while taking small or big decisions.

Focus on Partner’s Skill and Experience: If the company or business entity is lacking in certain aspects like sales or marketing, it is essential to bring on board a partner with strong skills to add value to the lacking sectors. There can be however a common sub set of skills between partners, but dedicated skill set and experience in troubleshooting those challenges allows to company to cover all challenges across the spectrum.

Good Business Ethics: It is imperative to choose a business partner with good business ethics and positive attitude. In this day and age of cut throat competition, a lot of business owners adopt unethical shortcut to maximize their profitability or gain an upper hand compared to their competitors. Having a good business practice flows from the top and if the owner and potential business partner is compromising his or her ethics, it could hurt the inner health of the company and the business structure.

Financial Commitment: Having a clearly defined financial commitment is necessary before bringing any partner on board. Having a financially sound business partner could help the company ride over the financial crunch situations as and when they appear. Having a partner with no financial commitments or monetary support in hard times could make it hard for the company and business to survive.

Mutual Respect and Clearly Defined Roles:  Having pre- defined roles is one of the best ways to avoid any conflict of egos or interest in the company setup. The roles must be clearly drafted and defined with mutual consent to allow freedom to work around the problem in difficult situations.  

Legal Obligations: Inking all legal obligations and paper work is a very important step. It is recommended to hire the services of a professional business attorney to formulate the paper work. Partnership firm is required to be registered under section 58 and 59 of the Partnership Act and under section 184 and 185 of the Income Tax Act, 1961.

Some business establishments including startups have spouses as potential business partners. Having a spouse as a partner can work only if there is clear demarked line between personal and professional relationships.

Have you ever worked with a business partner? Please share your experience with us.