Partner picking paralysis in my small business!

What’s your strategy for picking a business partner?

Your Rant: My small business has gotten too big for me to run on my own so I’m thinking about bringing in a partner. What should I look for in a potential partner? 

911 Repair
Lucas Sibanda was walking to work when a huge python slithered in his path. The snake quickly tangled itself around him and began to constrict. Lucas decided that the only way to save himself would be to bite the snake as hard as he could. So he chomped down just beneath its head. Sure enough, after a lot of punching and kicking, he managed to free himself and kill the snake.

A bad business partner is a lot like that python. He’ll constrict around you and eventually squeeze the life out of your business. So pick carefully! The tips below should help. For more, check out Azriella Jaffe’s book, “Let’s Go To Business Together” (Career Press, 2001).

Has he been sued? Does he have a criminal record? Your potential partner may seem like the most trustworthy guy in the world, but your business-and your own financial and emotional well-being-are dependent on his honesty. Don’t assume; INVESTIGATE! At the municipal courthouse in his city you can find out about any liens, suits, restraining orders, back taxes owed, delinquent child support, and other public records.

Does she provide what you don’t? A partner should bring something to the table that you don’t: skills, experience, cash, connections, and/or the ability and willingness to do things YOU don’t want to do. But again, don’t take her word for it. INVESTIGATE. Contact her former employers, employees, partners, creditors, customers, even competitors to be sure she’s representing herself accurately.

Does his management style fit your business? Observe your potential partner with his spouse, customers and employees. Magnify his negative traits a bit (since he’ll be on best behavior while being observed). Can you and your employees work with this person day in, day out? Don’t rationalize bad behavior no matter what strengths he brings to the business.

Does she rage about a former partner? When she talks about former partners, substitute your name into her statements. Do you like what you hear? Assume that past problems are likely to recur, and that it could be you she’s speaking about next.

Does he have a bad credit history? One more time: INVESTIGATE. Contact the three largest national credit agencies, Equifax, TransUnion and Experian. Or contact a local credit bureau. Avoid people who have already proven they can’t manage cash.

Does she want to do everything on a handshake? Memories are holier than Swiss cheese, so get all key agreements in writing. No, this isn’t the lawyer relief act. It’s a tactic for saving time, money and hassle later.

Has he lied about anything? Lying is a habit. Consider it a blessing if you discover he’s a liar sooner rather than later.

Hopefully these tips will help you distinguish a great partner from just another snake in the grass.

Workplace 911 Pulse:

What is your strategy for picking a great partner?

• It’s all about how they add value, 20%
• The key is if your personalities click, 21.3%
• Do lots of digging into their past, 27.3%
• Don’t, 33.3%

User Generated

When you take on someone to be your partner because they provide you with something you don’t feel you can provide yourself, you are opening yourself and your business to nothing but headaches. I was the most non-numbers person ever seen in my high school. As a matter of fact, the head of the accounting department where I signed up told me to go home. And I have to admit that it was hard, generally non-intuitive, and gave me headaches. But I completed an MBA in accounting and finance. If I can survive P&L, Balance Sheets and Assets = Liabilities + owners equity, so can anyone. Then, you and your partner can stand shoulder to shoulder, rather than someone having to carry the other person and then finding out later that they’ve been paying their grocery and cell phone bills out of your account.