3 Things to Consider Before Your Perfect Business Partner Becomes Your Perfect Disaster

Starting a business tin beryllium daunting. The statistic carnivore that out, pinch precocious nonaccomplishment rates successful nan first 5 years and others closing their doors wrong nan five-to-ten-year mark. There are galore reasons for failure, including nan deficiency of cash, not doing capable investigation and mediocre marketing. But location is 1 logic that does not get capable attention: a bad partnership.

Most would-be business owners are bully astatine what they do aliases make but mightiness not person each nan skills basal to win successful nan agelong term. That's why they look to unfastened nan doors pinch a partner.

How do group find a business partner? Some usage their web of friends and family to get recommendations. Professionals make connections astatine manufacture events aliases conferences and find group who person akin interests.

It is communal for individuals to look to existent colleagues aliases those they person worked pinch successful nan past erstwhile it comes clip to starting a business. After all, you cognize them. You cognize nan value of their work. You cognize their goals and aspirations. Or do you?

I thought I did erstwhile I collaborated up pinch a co-worker to commencement my media accumulation company. The thought was that I could grip nan income and creative aspects of nan business, and my partner would negociate nan cognition and method aspects of nan business. On paper, it looked good. It sounded appealing to those we approached for loans.

As a bonus, erstwhile we worked together astatine a tv station, it seemed for illustration we were compatible and like-minded regarding business. However, moving pinch different individual is different from owning a business pinch them. That is why immoderate partnerships spell south. That is precisely what happened to mine, and arsenic a result, I developed my "business prenup" to thief others debar nan mistakes I made. It's important to get smart astir partnering, aliases you mightiness request to get a business divorce.

The conception I first explained successful my book Small Business for Big Thinkers backmost successful 2013 goes beyond nan emblematic things you talk erstwhile considering a partnership, specified arsenic business structure, compensation and buy-out. Those are important, but nan conflicts often originate from those fuzzy, grey areas that should person been considered but did not because you believed you knew nan individual. That is often nan lawsuit erstwhile partnering pinch existent aliases past co-workers.

In my astir caller book, Small Business. Big Success, I expanded nan business prenup conception to see immoderate further areas.

Before you unfastened nan doors pinch a imaginable partner, present are 3 things to consider.

1. Ownership mindset

Some individuals are awesome astatine their jobs but mightiness not person what it takes to beryllium an owner. Being an proprietor intends that you return work for everything, not conscionable nan activity wrong your area of expertise. An proprietor has to beryllium consenting to put successful nan hours, make reliable decisions and thrust outcomes. It is very different than being an employee. Some tin make nan transition. Others cannot.

My ex-partner was much willing successful filling retired reports and doing mundane tasks than moving connected nan important tasks that would present results. He liked "busy work." To spot if your imaginable partner has nan "right stuff," inquire a fewer questions. What do you deliberation your domiciled is arsenic a business owner? What is your imagination for nan business successful nan first 5 years? Beyond that? Are location tasks you won't do for nan business? How do you spot america moving together?

Related: Leadership Qualities Most Successful Business Owners Share

2. Personal and style differences

People's family backgrounds and upbringing power really they behave successful business. It is 1 point to activity broadside by broadside pinch a co-worker successful personification else's cognition and rather different erstwhile you walk monolithic amounts of clip together building a business. Little things that mightiness person niggled astatine you abruptly go problematic. For example, each person's thought of perfect moving hours mightiness beryllium a small different. What 1 personification thinks is work/life equilibrium whitethorn look to different arsenic being lazy. What if 1 personification has a "glass half full" mentality while different is perpetually negative? That tin deterioration connected a relationship.

When moving for personification else, nan building is group by nan organization. In a partnership, personalities return over. There tin beryllium unanticipated powerfulness plays to get control. That co-worker who seemed mild-mannered is abruptly unrecognizable. Or downright controlling. It is difficult to cognize really group will respond erstwhile it comes to money and power. That is why taking nan clip to uncover potential issues aliases differences is truthful captious earlier joining forces.

Here are a fewer questions to ask. Do you person personalities that complement each other? Does your imaginable partner person a patient lifestyle? Is location thing astir them that is annoying aliases troubling?

Related: Three Things Happy Marriages and Successful Business Partnerships Have successful Common

3. Trust

Consider this. When you partner pinch someone, your financial and family's futures are inextricably tied to them. And it goes beyond money. Your estimation is besides connected nan line. If your partner engages successful risky behaviour aliases operates connected nan fringe of integrity, it impacts your business and your life.

If you can't communicate pinch a imaginable partner astir everything — run, don't locomotion away. Communication is cardinal to establishing spot and nan instauration for a successful partnership. Here are questions to inquire successful this area. Is your imaginable partner a bully communicator? Are location things he aliases she seems hesitant to discuss? Do they exaggerate nan truth?

Partnering pinch a co-worker aliases workfellow tin bring retired nan champion successful some parties. The aged saying is that "two heads are amended than one." That is true. With a partner, you get support and further expertise. However, it tin besides beryllium a nightmare if you don't person shared values and unfastened communication. Ask tons of questions and perceive openly earlier forming a partnership.