The question of “how to find a business partner” is what any serious business owner just starting and those already established need to ask.
And this is so for several reasons.
Business is not easy to operate alone.
Also, how big you want your business to grow sometimes requires you to bring in like-minded individuals as partners in the business.
When you do so, the business no longer becomes a burden on you alone.
Interestingly, business partners can be hard to find.
More so, a wrong business partnership can be the end of your business.
Therefore, in this blog post, we’ll explore several ways to identify and find the right business partner:
Let’s get right to it.
We’ll consider the things to do before, when, and after you find a business partner.
Things to do Before You Find A Business Partner
Ask Yourself If You Truly Need A Business Partner
This is the moment of truth that comes before going all out to find a business partner because you shouldn’t be seeking a business partner for the fun of it.
Instead, it should be a carefully thought out decision that you make for business growth.
Therefore, you need to ask yourself if you need a business partner.
One thing that indicates you need a partner is when the business becomes too tedious to handle alone.
Also, when you’re finding it difficult to keep the business afloat and maintain steady operations, you need to partner up with someone with the finances to save your business.
In addition to this, you need to consider timing.
Therefore, ask yourself, is this the right time for me.
This can be quite subjective as it depends on the type of business you run and the situation of things in the business.
Nonetheless, you can bring in a partner if your company requires additional resources, expert knowledge, or managerial skills.
Ask Yourself hat Role is the New Partner Coming to Fulfill?
When thinking of how to find partners in the business, it helps to define the roles.
This is to avoid misunderstanding and conflict when you eventually form the partnership.
Hence, what role is the new partner going to fulfill in the business?
Is it an investor role, board of directors, expert, etc.?
Therefore, ask yourself this and come up with a clear answer.
Ask What Does My Business Need?
Asking this question will shed more light on the question above.
By identifying your business needs, you’ll be clear on what roles you want potential partners to occupy in your business.
Can the Partner Complement your Business?
One of the reasons why you need a business partner for your business is for the business partner to add more value to you in all areas of your business.
He or she should be able to help you in expanding services to your customer by adding to your existing product.
For instance, if you produce bread, he or she should produce butter to complement your business.
In all, you need a business partner with a valuable product to offer you in return, which will be useful for both of you profitably.
Ask Yourself Am I Willing To Let Go of Some Control In My Business?
Often, we’ve seen entrepreneurs clamor for business partners.
However, when they eventually form the desired business partnership, what is supposed to be a beneficial business relationship turns into a power tussle.
Conflict arises due to conflict of interest and the desire to control.
Given this, you need to ask yourself sincerely am I willing to let go of some control in my business.
If Yes, then ask what level of control am I willing to let go of?
If you can’t answer these questions genuinely, then you should consider running your business as a lone entrepreneur until you’re ready to partner up.
After answering these questions, you should be sure if, and what you need from your partner, then you’re all set up to find a business partner.
Hence, follow these simple steps.
Simple Steps to Finding a Business Partner
Look for People with Similar Interest – How to Find a Business Partner
Before getting involved in any form of partnership, check to see if the person has the same interest as you.
The first thing to look out for is their belief system.
Do they have the same belief as you do?
If your beliefs and values aren’t the same, the partnership won’t stand.
Also, find out if your potential partner targets the same audience as you?
If the answer to all these questions is yes, it means there’s a solid foundation for a flourishing business partnership and success.
Consider Existing Business Connections – How to Find a Business Partner
Since we know how hard it is to get a good business partner or establish new connections, building on your already existing ones is advisable.
Go through the list of likable connections you have.
Also, look at the areas where your business needs help and then pick someone from your contacts that could fit your business.
Above all, rather than spend more time searching for a new business partner, take advantage of existing business connections that will most likely help your business grow.
This is even more beneficial because you already know this potential business partner like the back of your hands.
Consider Close Options (Friends or Family) – How to Find a Business Partner
This is another way to find a business partner.
Sometimes, you might be afraid of making a friend your business partner.
Surprisingly, they might be the type of business partner your business needs.
They will help your business grow through partnership.
In addition to that, you already know a few things about this person.
Therefore, trusting him/her will be a lot easier than when you bring someone totally unfamiliar to you on board.
However, losing friendship might be your greatest fear.
But in other ways, with good character and respect built over the years, the partnership business can be successful.
That is why you should be sure of what you want in a business partner.
Also, there should be a clear vision for the business partnership.
This would help curtail overfamiliarity and unseriousness in the business.
Get Some Recommendations – How to Find Business Partner
You could also ask to be recommended for a business partnership with other big businesses and investors.
If you have friends connected with entrepreneurs or business owners, you could ask them for recommendations.
This could help you find serious people interested in your business and form a partnership with them.
Put Yourself/Your Business Out Online
Going online is another great way to get a business partner.
The best approach for this is to promote your business online using various online platforms.
This will give potential business partners the access to learn about your business and give it the attention it needs to attract potential investors and partners.
Another way you can achieve online visibility is by putting up a website.
Create a website with your business name, business logo, contact address, location, and what your business offers.
The website should showcase what your business offers to determine the kind of business partner to reach out to you.
Overall, putting your business online gives you the rare opportunity to attract potential business partners and build meaningful partnerships.
Now, these are some of the ways to find a business partner.
However, finding a business partner is one thing, and building the partnership is a different ball game.
Therefore, let’s discover the thing you should do after you find a business partner.
What to do After You Find A Business Partner
Find out More About them – How to Find a Business Partner
Before getting into partnership business, always do a background check on your business partner.
Run a background check on their reputation and their past dealings with business partners other than you.
How do they treat their past and existing customers?
This matters a lot in getting customers.
Dig deep to know if any fraudulent transactions or criminal cases are associated with their business.
We are sure you don’t want that for your business.
Likewise, you can research your potential business partners via their social platforms such as Facebook, Linked In, websites, etc.
These will greatly help you to know how the world sees and acknowledge them online.
Start with a Trial Period/Project
It’s good thinking to put your potential partnership to the test.
This will allow you to confirm all the information you have gathered about the partner and understand how the partnership experience will be.
Hence, test them concerning how they will handle certain issues when the partnership is established.
Set a Date to Meet – How to Find a Business Partner
It’s also good to have a business meeting with your potential partner.
This allows you to know your potential business partners personally before entering into any business transaction.
This meeting is meant for you and your business partners to know each other.
Hence there should be transparency and honesty.
Also, this is the best time to explore each other’s business principles, goals, and ideas.
If your business partner’s beliefs are the same as yours, then partnering with him or she will prove beneficial in the long run.
However, if not, then issues and disagreements may come up as the business goes on.
Come Into an Agreement
After all, has been said and done, it’s time to finalize partnership agreements and make them official.
You and your new partner will need to sign a partnership agreement.
Therefore, you should draft a partnership agreement deed, otherwise known as a partnership act.
What should be in this agreement are as follow:
- Business plans and objectives
- Salary and benefits
- Duties and roles
- Even breakdown
- Goodwill benefit
- Working out plans
To back up this agreement legally and put everything in place, you will have to reach out to an attorney in business to help in sealing the agreement.
What’s Next After the Partnership Agreement?
Put in Equal Work and Share the Profit Equally
Do things in all fairness is the right way to go.
Partnership business thrives well when commitment to a business is equal to the gain shared.
In this way, no one is crying foul play as the case may be.
Make sure that, even if the commitment and resources are not shared on a fifty-fifty basis, getting what you put in should equal what your share will be at the end of any successful business transaction.
It is important to apply this in the partnership act, and it should be legal and agreed on by both partners.
Nothing ends a partnership business faster than cheating from one partner.
It brings about hostility from one partner to the other partner.
If not properly checked and settled, it brings about division and disagreements.
Note that different business partners have different roles in a business; this is also applicable in profit sharing.
Therefore, there should be an agreement at the beginning of the partnership business to avoid confusion.
Before you go, let’s educate you on some of the benefits of having business partners.
Benefits of Business Partnerships
Although partnerships have their downsides, such as causing conflict, making you lose ownership of the business.
Also, you may have to struggle with difficult partners who can seem to align themselves with your business goals.
However, with the right partnership agreement in place, these downsides can be minimized, leaving you to enjoy the bountiful rewards of a thriving business partnership.
Therefore, let’s take a moment to look at the many benefits of a good business partnership.
- It creates an avenue for the availability of needed resources (human and non-human) to run your business smoothly.
- Also, it reduces your workload and stress, thereby promoting work-life balance and increasing productivity.
- It also creates opportunities for growth and expansion in the business.
- Having partners also improves the decision-making process in the business
- It fosters innovation and creativity due to the combination of different perspectives in the business.
- It also reduces the cost of operation and helps you save more as there are multiple income streams to pull from.
- Lastly, partners can give each other moral support to keep thriving in the business.
Conclusions on How to Find a Business Partner
Getting a good business partner that will add more value to your business is a great idea.
A good business partner will help you grow your business to the level you desire.
With this in mind, the guidelines we have shared so far will help you get a business partner.