Successful Partners Complement Each Other
Author: Will Corrente
I recently received an email from a young entrepreneur requesting the criteria I would use in selecting a business partner. How to choose the right business partner is not an uncommon concern among aspiring entrepreneurs and is definitely one that should be considered very carefully before moving forward. Your choice of business partner could be the difference between success and failure.
Selecting the right business partner is a two step process:
- First, you the entrepreneur needs to complete a candid self-evaluation and skills inventory. Based on the results, you will have a clear vision of your capabilities and shortfalls, which in turn will give you the selection criteria for the appropriate partner.
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Second, you the entrepreneur will need to candidly evaluate your potential partner’s skills, capabilities and personality. Successful partner selection should be objectively based on the needs of the business and not on friendship, emotion, or exhaustion of the entrepreneur. The most successful partnerships are found on synergies and skills that meet both the current and future demands of the business.
The best partner will have skills complementary to your own, not the same skills as you. Several years ago a friend opened a deli and chose a close friend for his partner, both loved to cook and create in the kitchen. But neither enjoyed the front of the house, customer service, marketing or staff management responsibilities necessary to the business’s successful operation. They both quickly realized that the business did not need two chefs, no pun intended, and one of them would need to step beyond his comfort zone and take on a different role. Neither was willing nor effective in these critical areas, and because finances were tight and someone could not be hired to assume these duties, the business soon closed.
Especially in tough economic times and whenever a company is boot-strapping, it is essential that each partner complement each other in skills, personality, and access to resources to deliver real value. If one partner is in charge of operations, human resources and finances, then the other should complement him/her in the sales, marketing, and business development roles. In this way, there is synergy and value created for the business in both an intellectual and resource capacity.
When considering potential partners it helps to have a long term view. If you have aggressive growth planned for the business or are seeking venture capital in the future, consider asking yourself if you will be able to make a sound case for why you decided to go into business with this person. Thinking in the long term view from the very beginning will ensure you will be ready for that critical next step connection when the time comes.
Top 5 Qualities to Look For in a Potential Partner
1) Similar Values and Ethics Regarding How Business is Done- Making sure you and your partner are on the same page; from how to address customer satisfaction guarantees, to how to maintain your books, and file your taxes. Being ethically aligned is important regardless of partnership structure.
2) Complementary Skills, Education, and Experiences- The best partnerships allow the business to grow because each partner can create duties that serve the needs of the business. For instance, if you are strong at sales and marketing, then you would want a partner who is strong in the operational aspects of the business such as finance, accounting, management, etc.
3) Good Communications Skills- Partnerships are like a marriage, any couple will tell you if you do not have good communication you are not going to make it over the long haul. Good partners communicate with each other frequently about the little things and the big things. Assessing a partner’s communication skills is paramount to success.
4) Ability to Compromise- The best partners will clearly express their opinion, listen and try to understand your point of view, and in the end always be willing to compromise. Great partners put the needs of the business ahead of ego or self interest.
5) Clear Commitment to The Business- Partners can have different duties and responsibilities, but at the end of the day each must be equally committed to the business in order for it to succeed. Having an understanding of how committed and accessible your potential partner will be is essential for success.
John D Rockefeller once said : “I would rather have a friend based on business, than a business based on friendship.”
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