How To Find A Business Partner Who Will Boost Your Profits

Table of Contents

1. How can a business partner help a business?

2. What are the advantages of having a business partner?

3. What are the signs of a good business partner?

4. Where do you find a business partner?

5. Are trial periods a good idea?

6. What should be in a partnership agreement?

7. How do you get rid of a business partner?

How can a business partner help a business?

It can be hard to begin and grow a business on your own. Having a business partner to shoulder some of the burden can make the journey easier. That said, it isn’t easy to find a business partner. You may wonder how to narrow down dozens, if not hundreds of potential candidates. What qualities should you look for? Where do you even find a business partner? This article will provide answers to those questions.

This writing is informed by our business partnership attorneys representing thousands of business owners; additionally, the best data comes from my first-hand conversations with business owners and their leadership team. By the end of this post, you should have a good idea of how to find a business partner to set your company on the path to success.

But before we dive in, let’s think about the ways in which a business partner can help a business. After all, plenty of entrepreneurs run their own companies without partners. Are you one of these jacks-of-all-trades? Perhaps. But consider these questions:

Are you taking on too many responsibilities?
Are you unfamiliar with your product or industry?
Are you running short of capital?
Do you need more networking?
Do you need strategic advice?

Of course, a partner is not always the right answer to a problem. If there is a specific task you are having trouble with, you may be better off hiring a contractor or freelancer. If you only need advice, you can always find a friend or mentor to provide guidance. Having a partner means giving them a share in your company, something you should take very seriously.

Learn more: What is a business partnership?

What are the advantages of having a business partner?

The right partner can help you take your business to new heights. But the wrong one can send it into a nosedive. To improve your odds, think about the reasons you want to find a business partner. You may need someone to take on some of the many tasks involved in starting or running a business. It could also be that you want someone with whom you can talk about strategy. A business partner can take the pressure off making decisions all on your own. With tasks equally divided, the business can grow faster. When you find a business partner, you also get access to their connections. There is also the benefit of a partner’s capital; it’s not just your wallet at risk.

What are the signs of a good business partner?

So, you want a business partner. Great! But how do you know if you’ve found the right one? This is an important decision. A partner is not just a colleague; they will be like family to you. Therefore, you want to find a business partner with whom you get along. You also want to find a business partner who offers much-needed skills and is a self-starter.

Below are seven of the biggest traits a business partner should have.

They have goals for the company.

Your ideal partner’s goals should align with yours. You may want to find a business partner who is in for the long term and will stay with the company for years. Alternatively, you may want to find a business partner who can help out for a limited time before bowing out. Whatever the case, you should find a business partner whose vision matches yours.

How do you determine this? Ask them about where they envision the company in a year. What about five? Ten? Ask them what they consider success. Maybe it’s breaking even. Maybe they want to be a national brand.

You don’t need to find a business partner who thinks the sky is the limit. The point is to find someone who thinks the way you do. If you want a small but successful company limited to your city, find someone with the same goal.

They have the same way of communicating.

Let’s say you are a person who dreads talking on the phone. Your new business partner loves calling at dinnertime and chatting for hours. That’s not a good match, is it?

You want to find a business partner who has a communication style compatible with yours. If you like someone who is direct and to the point, don’t settle for someone who skirts the issue or holds their tongue in stressful situations.

They have the right experience.

Another factor to consider is a partner’s track record. Have they had previous businesses? How did they fare? Partners can have varying levels of experience – perhaps you strike gold and get Mark Cuban interested in your company. But, in general, you may prefer someone with a similar level of experience in running a business.

To find a business partner for your company, be honest about your past experience. Both parties should feel comfortable with one another.

They have the right mix of talents.

You should find a business partner with a mix of talents that complement your own. You don’t need a carbon copy of yourself. What would be the point of that? Your business partner should fill gaps in talent.

Let’s say you run a company that develops video games. You have a great team of artists and developers, but you have no idea how to market your games. In this case, you might need to find a business partner who is a marketing whiz. This can help balance the business.

They have a good personality.

Business does not always stay in the office, however much we might prefer it did. The reality is that you and your partner will be spending a lot of time together working on the business. You should find a business partner who you can get along with. You don’t have to be BFFs, but it is best you enjoy the other’s company.

Picking a business partner is not like dating in the outside world. The ideal partner does not need to share your love of sushi or prefer cats over dogs. Rather, they should share your ideas about how to handle business problems, how to manage risk, and how to balance business with one’s personal life.

Finding a business partner is also different than interviewing a typical employee. You are a bit freer to ask difficult questions.

They agree on equity.

When you decide how you are going to divide responsibilities, you also need to talk about splitting equity. Will it be split evenly? If one partner is taking on more, then they may deserve more ownership. It is best to talk about finances right at the start so that it doesn’t become an argument down the road.

They aren’t hiding anything.

Everyone has parts of their past they wish didn’t happen. However, the key is to be honest about them. You don’t want to find a business partner who tries to hide uncomfortable truths until they blow up in everyone’s face. While it may feel awkward asking someone about their past, it is an important element in forming a business relationship. You should ask a potential partner the following tough questions:

Have you been arrested?
Have you ever dealt with bankruptcy?
Do you have a good reputation?
Do you switch jobs often?
What do previous employers say about you?

Write down a list of desirable traits and check them off when you interview candidates. Simply scanning profiles on LinkedIn is not going to be enough to find a business partner. It will be necessary to sit down and talk with them about their personalities and goals. You want to get to know them well before committing to a partnership.

Where do you find a business partner?

Luckily, we are no longer living in the days where you have to ask Uncle Jeff if he knows ‘a guy’ who can be your business partner. Now, you can simply turn to the Internet.

Social media

Finding a partner can be as simple as posting on Facebook or LinkedIn. It could be that your college coursemate or friend from an old job is interested in your business. Social media lets you get in touch with your entire network in one click. Instead of going to them one by one, they can come to you.

Business networks

You might be able to find partners in communities for entrepreneurs. There are sites like CoFoundersLab and FoundersNation that offer matchmaking services. These sites are a great way of connecting with potential partners and freelancers.

And, of course, it is never a bad idea to check groups on LinkedIn. You never know who you might find.

Coworkers

What about that one friend from your previous job who was a genius at marketing? It’s never a bad idea to get in touch with old coworkers who you worked well with in the past. They could be highly qualified and interested in your proposal. Even if they are not a good fit, they may know other people who are. Even old managers may be open to being your partner. One benefit is that you already know how these individuals work, so you’re already one step ahead.

Friends

You don’t always have to keep your personal life separate. Sometimes friends can make great business partners. However, just because Dan was cool in college does not mean he will be a great business partner. Choose someone based on their qualifications, not just their personality.

It could be that old high school classmates are now business owners too, and they may be interested in your project. LinkedIn and Facebook are great ways to check in on old friends and see what they’re up to.

Mentors

If you want to find a business owner who knows their stuff, consider asking one of your mentors if they are interested. Mentors may also know qualified candidates for the position. Or, if you have a potential partner in mind, run it by your mentor for their perspective. Maybe they’ll catch a blind spot, something you haven’t seen.

Are trial periods a good idea?

A trial period for a business partner is often a good idea. You can have a lawyer draw up a partnership agreement that makes a trial period part of the deal. If the relationship isn’t working out after two months or so, they can both pull out of the deal with some of the capital they invested. A trial period takes a lot of the pressure out of a new partnership. You can both see if the partnership is working without feeling as though you are forcing it.

What should be in a partnership agreement?

Like companies, every partnership agreement is unique. However, every partnership agreement should contain information related to duties, salaries, goals, ownership percentages, intellectual property, equipment, and exit strategies.

How do you get rid of a business partner?

Let’s say you find a business partner, and everything is going great for a month. However, you begin to notice he isn’t quite the perfect match you had hoped for. It turns out he doesn’t perform well under pressure. While it will be a hard conversation, you owe him an honest explanation of why it isn’t going to work out. It should be a more comprehensive reason than simply “I don’t really like you.” Ideally, you will have mapped out an exit strategy in your partnership agreement, which will make parting ways easier.

Learn more: How to get rid of a business partner?

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