What To Look For In A Business Partner

Finding a good business partner can be a very strategic move for your company. If you don't currently have a business partner, there may come a time when you have to look for one to share financial and administrative responsibilities. Of course, you also would have to share profits. Regardless, a business partnership that generates some revenue is better than a sole proprietorship that generates none at all.

Forbes Magazine recently outlined the following 5 things to look for in a business partner:

1) Complementary Skills
Having a lot in common with your business partner may feel right, but you don't want a clone of yourself. Partners with the same backgrounds and expertise may not bring anything new to the equation. Instead, look to fill gaps. If you're a nits-and-grits operations type, find someone who can sell ice to an Eskimo.

2) Ability To Listen, Strength To Disagree
A good business partner understands the importance of compromise--without being too compromising. Walking that fine line begins with developing mutual respect. The best partners also have the courage to address tough financial issues, and even personal matters that might impact the company. Try to establish that rapport up front. As Rhonda Abrams, president of the small-business-book publisher The Planning Shop in Palo Alto, Calif., puts it: "Date before you marry a business partner."

3) Clean Track Record
The last thing you want is a deadbeat for a business partner. Banks and other lending institutions will balk at funding your venture if one or both partners are in hock with creditors, so make sure you look under your partner's hood. Think of it this way: You wouldn't invest in a company without perusing its financial statements, right?

4) Solid Contacts
"People buy from who they know and trust," says Robert Moment, a small-business consultant in Arlington, Va. With that in mind, beef up your marketing muscle by snagging a partner who has solid contacts in your field and in the community--be it through local Parent-Teacher Associations or community planning boards.

5)Common Goals
Partners should be on the same page about where they see the company going. One side can't be girding for the long haul while the other courts strategic buyers in search of quick riches. Likewise, make sure your partner has a similar work ethic: If you're a believer in 16-hour work days but your partner expects to be home for dinner promptly at 6 p.m., prepare for some friction.

To read the full article, visit:
www.forbes.com/entrepreneursmanagement