Important Factors to Consider When Choosing a business Partner

Factors to Consider When choosing a business partner

The success of a business depends largely on its management. Therefore, every step towards employing or hiring a staff or any other member of the organization should be properly examined. Having a partner whose vision and mission do not align with that of your organization can be a “disaster” to your business.

So many factors can necessitate the need to have a business partner. The need to have a business partner, an assistant or auxiliary cannot be overemphasized. Before you select a business partner, you should first of all ask yourself this question; Why do you need a business partner?

A business partner is a person whom you have a common agreement either written or verbal to do business together with the common motive of making profit. Here, we will be discussing important factors to consider when selecting a business partner. You have your aim of opening a business, therefore, you should select a partner who will help in achieving such a goal or objective. Choosing the wrong business partner may make you loose your goals or even lead to the end of your business.

Important Factors to Consider When Choosing a business Partner

Here are some criteria that you need to consider when choosing that business partner;

1. A partner who is experienced

The nature of the business that you are into or want to venture into will give you an insight on the type of partner that you need. Partnering with someone who is experienced in such a business will be a bonus. This is because such a person will come with his own ideas and initiatives which can be adopted if you are comfortable with it. If you are not experienced in your line of business, I will advice you go for a partner who has great experience in such a business.

2. His vision and mission should align with that of the business

He should have strategic focus on the mission and vision of the business. Knowing fully well you are going to work together, the partner should be willing at anytime to be a carrier of the mission and vision of the business, protect and pursue the strategic objectives of the business as stated in the mission and vision statement.

2. The type of partnership that you want

Some business owners wants a partner that will help them to run the day to day affairs of the business. Some want someone who will invest their money into the business only while others still want a partner they will use only his name to run the business. Thus, partnership can be categorized into; active, dormant and Quasi-partner. All these partnership types has to be tailored in selecting a business.

In all, a selected partner must be willing to contribute his quota. This is applicable irrespective of the type of partnership to be contracted. For instance;

A. A partner to be involved in the day to day running of the business; The Partner should be coming on board with all his effort, time and initiative necessary for the operation of the business. In running the business, he must be willing to defend, uphold and at all time use his initiative to manage the business.

B. A partner contributing his resources; These resources may include but not limited to land and money. This Partner must be willing to meet the term of reference of resource contribution needed in the running of the business. This contribution quota will inturn depend on the amount agreed in the partnership deal.

C. A partner contributing his name; He must be a willing Partner who is ready to submit all that concerns his name in the course of running business. He must be willing to use his name to represent the business when the need arises.

3. The partners past records

In selecting a partner, necessary due diligence should be carried out. This is where the antecedent of the potential partners are examined. Their business acumen and their management initiative aligning with the business objective of the business to see if the partner will be a fit for the business. He should be good in managing the business for growth and also contribute additional fund when needed. Things that should be checked for includes;

Trustworthiness; It is good to partner with someone whom you can trust at all times. This is because a partner with a questionable trust level or past record of betrayal can equally betray you.

Proper Management Skills; If such a partner have been involved in a business before whether his own or in an organization, you should try to know why he left such an area. Having a record of past failed business or loopholes in the management of a role in an organization can be a red flag.

Compatibility; You should choose a partner who will be willing to not only cooperate with you but also others. If his level of compatibility is low, know that it may likely affect your business in a negative way.

You should always study your business partner very well. Even when such a partner doesn’t meet your expectations, you can always know where to draw the line. You shouldn’t let your business suffer long because of your choice of partner, this is because your business may not survive it.

Also Read; What is Partnership in Business? Meaning, Advantages and Disadvantages

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