Opinions expressed by Entrepreneur contributors are their own.
Key things
- The right business partner will multiply your strengths; the wrong one multiplies your risk.
- Do a thorough character, values and behavior check before partnering – ignorance is the biggest liability.
Steve Jobs had Steve Wozniak. Warren Buffett had Charlie Munger. Larry Page had Sergey Brin. Some of the most successful people in the world owe their success to the partnerships they formed along the way.
Finding the perfect business partner is one of those fast tracks to success that I like to talk about. In the case of a perfect business partnership, 1 + 1 = 3. This equation tries to say that when two people join forces, the potential success of that partnership can be significantly greater than the individual achievements of each partner.
But while partnership is one of the fast tracks to success and wealth, it is also one of the fast tracks to failure or bankruptcy. Choosing the wrong partner can wreak havoc on your financial and personal life. Bad partnerships lose money, end up in lawsuits, and destroy marriages.
Questions you should ask yourself to help you find the perfect business partner
So how do you go about finding the right business partner? Below are some questions to help you identify potentially good business partners:
- Is your potential partner honest?
- Is your potential partner humble?
- Does your potential partner have skills that you lack?
- Does your potential partner have control over their emotions?
- Is your potential partner financially sound?
- Does your potential partner have good relationships with their family members? Family includes immediate family as well as parents and siblings.
- Does your potential partner treat his family members well?
- Does your potential partner have a hard job?
- Does your potential partner follow the rules?
- Have you worked with this potential partner before?
- Do you know this potential partner very well?
- Is your potential partner positive, upbeat and upbeat?
- Does your potential partner have a good reputation?
- Does your potential partner have integrity?
- If your potential partner has a husband or lover, do you know them well?
- Is your potential partner a good listener?
- Does your potential partner have a reputation for keeping their word?
- Is your potential partner a good student?
If the answers to these questions are yes, then you have the perfect partner candidate. If you don’t know the answers to any of these questions, don’t work with a potential partner until you do.
Here are some questions to help you identify potentially bad business partners:
- Does your potential partner have a reputation for being a liar? Have you caught them even in small lies?
- Is your potential partner arrogant? Quick to anger?
- Is your potential partner cheating on their taxes?
- Does your potential partner have any outstanding tax issues or deficiencies?
- Has your potential partner ever sued anyone? Has he been sued by anyone?
- Is your potential partner cheating on their spouse?
- Do you and your potential partner have similar skills?
- Does your potential partner have financial problems?
- Does your potential partner treat his family members badly?
- Has your potential partner ever had a failed partnership before?
- Has your potential partner ever broken any laws – do they break the rules?
- Has your potential partner ever filed for bankruptcy?
- Does your potential partner have any outstanding debts that they stand behind?
- Is your potential partner gossiping?
- Is your potential partner negative, down and pessimistic?
- Does your potential partner have a bad reputation? Lacking integrity?
- Has your potential partner ever made bad investments in the past?
- Does your potential partner have any problems with his or her partner?
- Does your potential partner exaggerate or have trouble keeping their promises?
- Has your potential partner ever broken any promises to you or someone you know?
- Has your potential partner ever broken any promises to any of their past business partners?
If the answer to any of these questions is yes, this may not be the right partner for you. If you don’t know the answer to all of these questions, don’t work with a potential partner until you do.
Tests of potential partners
Some other points I would like to make about potential partners:
- Find three or more individuals who have worked with this potential business partner and ask them the questions above. This includes former partners and vendors.
- Ask your potential partner’s family members these questions?
- Who does your potential partner surround themselves with?
- Are their friends stand-up people or not?
- Would you hang out with their friends?
- Never work with someone who surrounds himself with fools or people who lack integrity.
You will never know everything you need to know about a potential partner, but asking the above questions is good due diligence and will help you better screen potential partners. Knowing as much information as possible about future business partners significantly reduces your risk.
The more you know, the lower your risk. Not knowing as much as possible about potential business partners greatly increases your risk. The less you know, the greater your risk.
Key things
- The right business partner will multiply your strengths; the wrong one multiplies your risk.
- Do a thorough character, values and behavior check before partnering – ignorance is the biggest liability.
Steve Jobs had Steve Wozniak. Warren Buffett had Charlie Munger. Larry Page had Sergey Brin. Some of the most successful people in the world owe their success to the partnerships they formed along the way.
Finding the perfect business partner is one of those fast tracks to success that I like to talk about. In the case of a perfect business partnership, 1 + 1 = 3. This equation tries to say that when two people join forces, the potential success of that partnership can be significantly greater than the individual achievements of each partner.