How To Choose A Business Partner You Won’t Regret
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Oct 20, 2023,08:00am EDT
Kevin Markarian is the cofounder of Roopler, an AI-driven lead generation platform built for the real estate industry.
Working as a solo entrepreneur can be a challenging, risky and, at times, lonely endeavor. After all, when you attempt to launch and scale a business independently, you have to rely solely on your skills, networks, personal stamina and resources. For this reason, I often, but not always, recommend collaborating with one or more business partners.
However, choosing the right business partners is easier said than done. Here’s my advice on how to choose business partners you’ll never regret and why the best choice isn’t always obvious.
Five Strategies For Finding A Great Business Partner
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1. Recognize that past success is only one criterion.
A person’s past success doesn’t guarantee that they’ll be successful again in the future. It also doesn’t mean they are necessarily the right business partner for you.
While a past record of successfully launching, scaling or leading a business may be one factor to consider, avoid relying on a potential business partner’s past track record as your only or primary deciding factor. After all, not everyone can repeatedly replicate success, and even if they can, they may not be the right business partner for you because they aren’t compatible, don’t share your values or don’t bring anything to your business that you don’t already possess.
2. Assess for compatibility.
Even if you’re the type of person who loves to hit the ground running, slow down! Execution is critical, but when choosing business partners, it is also important to avoid moving too quickly. Ensure your potential business partner is compatible.
Can you tolerate their behaviors? If they are remarkably different from you, are the differences likely to be an asset or potential source of friction and conflict?
3. Avoid redundancy.
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Like it or not, many people suffer from similarity bias. Put simply, we tend to be attracted to and even trust people more easily when we already share more, rather than less, in common. When choosing a business partner, this can put us at a disadvantage.
To avoid simply replicating yourself, actively seek out a business partner who isn’t your doppelganger. Among other questions, ask yourself what they bring to the table that you don’t. Also, understand why these skills, networks, resources or insights are critical to your future business venture’s success.
4. Be attentive to value alignment.
When choosing a business partner, don’t underestimate the importance of value alignment. How do they treat people? How do they respond to difficult situations?
I believe the best way to read someone’s character is to watch how they treat people from whom they can’t gain anything (e.g., their employees or even a passing stranger). Do you feel confident that they will be able to represent you and your company’s brand when you’re not present?
Of course, to find a business partner with aligned values, you first need to have a clear sense of your own values and the values you want to instill in your business and brand.
5. Avoid partnering with “professional partners.”
If you’ve spent time in the business world, you’ve likely met your share of “professional partners.” These are people who have an interest in multiple companies but often seem to have little interest in any specific company.
While there are times when it can be incredibly strategic to partner with someone in this category (e.g., if you are looking for an investor, strategist or someone with an established reputation in a specific industry), it is important to understand they won’t treat your business like their baby. This also means that they are unlikely to support you in the daily grind.
What matters most is recognizing the difference between going into business with a “professional partner” and someone who is willing to go all in and share all the grind and the glory.
Stronger Together
Whether you’re a first-time entrepreneur or an experienced business owner, when you choose the right partner or partners, collaborative endeavors are nearly always strategic. Among other benefits, I’ve found starting a business with a partner nearly always comes with at least four key advantages.
• Reduces risk: In business partnerships, you share the risk with other stakeholders.
• Facilitates expansion: If you already own one or more businesses, a business partnership can also be a great way to scale a new business while keeping an eye on your established companies.
• Quickly build credibility in a new industry: If, for example, you’ve always worked in retail or real estate and now want to launch a customer relationship management or lead generation platform, bringing in a partner with a background in technology is an easy way to help quickly gain credibility in a new industry.
• Reach new markets: If you’ve always been regionally based, a business partner with a strong reputation in a different area of the country or globally can also be a great way to gain a foothold beyond your established territory.
Whatever your business goals, if you choose the right business partner for the right reasons, you will likely be stronger together and better positioned to launch and scale your next business venture.
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