The business world is as much built on partnerships as it is on finances.

Most entrepreneurs will need networks, connections, and partnerships to help turn their vision into a reality. As an entrepreneur and businessman, I know first-hand the value the right partnership can bring to a business. Whether raising capital or sharing skillsets/knowledge, there are many reasons why business people decide to go into a partnership.

 

With mergers and acquisitions a vital part of my growth strategy, establishing productive partnerships with business leaders and fellow entrepreneurs has always been important to me. Most recently, my professional relationship with IT Works’ Ryan Cleater resulted in the merger of our two Isle of Man-based IT companies.

Finding the right business partner isn’t always easy; it’s a big decision choosing to go into business with someone. To ensure you have all the information you need to make the best decision for your business, here are 10 things you should consider when looking for a business partner.

 

10 Things You Should Consider When Looking for the Right Business Partner

When looking for a business partner, you’ll definitely want to strike a nice balance between differences and similarities. It’s essential you agree on some core things but you should also never underestimate the value of having different skills, experiences, and personality traits.

Let’s take a closer look at some of the points you should consider:

 

1.A Similar Entrepreneurial Drive

When looking for a business partner, you’ll no doubt want to find someone that has a similar entrepreneurial drive to you. There’s no one way to be a successful entrepreneur or businessperson.  But the way you approach business may be different to your potential partner.

Finding someone with a similar entrepreneurial drive is key to forming a successful partnership. This will ensure that you have a similar mindset/approach to running a business and could avoid potential disagreements in the future.

 

2.A Different Skillset to Yourself

Whilst a similar entrepreneurial drive will help you operate as a cohesive team, finding a partner with a unique skill set can bring immense value to your partnership and ultimately your business.

If you have experience or practical skills in certain areas of business but lack experience elsewhere, choosing a partner with a different skillset helps to fill in these knowledge gaps. This will ultimately bring added value to your business venture and ensure you have all the skills you need to run a successful business.

 

3.Experience in Your Industry

Whether you’re already in a certain industry or looking to branch out, choosing a partner with experience in that sector can be a recipe for success. You can draw on their industry-specific experience and knowledge to help build a strong and successful business.

This is especially useful if you’re setting up a business in a brand-new industry. You may have transferable skills and experience that apply to any business but lack the more nuanced industry insight that can make or break a business. Finding a partner with industry-specific experience can help steer your business to success.

 

4.Similar Values and Ethics to You

When you’re looking for a partner, it’s beneficial to consider if they have similar values and ethics to you. Whilst you don’t have to agree on everything, it certainly helps to agree on how you’ll approach environmental and employee considerations across your business.

Being on the same page about these things could help to avoid awkward conversations and disagreements further down the line, and ensure that you won’t have to compromise on the values that are important to you and the way you do business.

 

5.A Shared Vision for Future Business

Before you enter into an official partnership, it’s advisable to discuss the vision you have for your business venture. Whilst collaboration and compromise are part of any partnership, it can be beneficial if you and your partner have a shared vision for the future.

Finding a partner who is on the same page as you can ensure you’re both working towards a common goal from the start. That’s not to say that you need to agree on everything but seeing eye to eye on the bigger picture can make your partnership a lot more productive.

 

6.A Reliable and Committed Personality

Building a successful business isn’t easy. It can also represent a risk if you’re investing your time and money. Succeeding in the business world requires hard work, dedication and commitment. These should therefore be the qualities you also look for in your business partner.

You want to go into business with someone who you know you can rely on. They should be as committed to your venture as you are. If not, you could end up working doubly hard to ensure your business is successful, which can lead to tension and stress in your partnership.

 

7.Resources, Capital, and Networks

Whilst this isn’t the be-all and end-all of your hunt for the right partner, it doesn’t hurt to consider the more material aspect of your partnership, such as resources and investment capital.

This shouldn’t be all you consider, however. You’re looking for a partner, not an investor after all. But if they can bring additional resources or funding to your business, it’s never a bad thing. You should also consider less tangible assets such as their network. They could know people that will help you get your business off the ground.

 

8.Your strengths and weaknesses

As we’ve already mentioned, you’ll want a partner who has complementary characteristics to your own. This starts with assessing your own strengths and weaknesses. If you’ve been in the business world for a while, you’ll no doubt already be aware of the things you’re good at and the things you need to work on.

Whilst you should never stop trying to improve yourself, there’s no shame in seeking out a partner who already has the traits and behaviours you might lack.  Together, you’ll make a complete team and can exchange knowledge, skills, and perspectives while you build a successful business together.

 

9.Do you want an Active or Silent Partner?

When looking for a partner, it’s worth thinking about what you actually want and need from the partnership. Most of the points above apply to those looking for an active partner. This kind of partner will be involved in the day to day running of your business. If you’d prefer to manage things solo, maybe a silent partner would be a better fit for you.

This type of partner will contribute financially to your business and maybe get involved with the overall direction/strategy. Most will be happy to let you crack on with the smaller, daily operation of your business.

 

10.How You’ll Tackle the Legal Stuff

Legally speaking, there are three types of partnerships:

• General Business Partnerships
• Limited Liability Partnerships
• Limited Partnership

All of these will bring different legal requirements, as well as benefits and drawbacks. Once you’ve decided on the right person, you’ll need to discuss which of these options is the best for you and your partner. Do your research. The UK Government website has some helpful information on this topic.

 

If you’re in the process of looking for a business partner, I hope that these points will give you some food for thought! Good luck!

 

Matt Newing is a self-made entrepreneur, investor, and philanthropist who’s always on the lookout for the latest and greatest business opportunities. If you have a business that needs to be taken to the next level, get in touch with Matt today.