Got business ideas and ready to start a business, here’s how to find a good partner.
What do William Proctor and James Gamble and Orville and Wilber Wright have in common?
Answer: They are successful business partnerships that built the famous companies and products we know of today.
Having a business partner is not essential to your startup’s success. However, you may find that having another skill business person could be a great asset to your new company. Starting and running a small business is hard, having another person to travel through the ups and downs of entrepreneurship would help you to experience problems and reduce your daily stress.
Thinking about going into business partnership with your close best friend? Read my list of pros and cons of starting a business with friends here
The Plus Side of Business Partners
Starting a new company yourself is a great exercise in entrepreneurship, however, by getting a business partner, you get an extra set of skill sets, background, and new ideas. You know that two heads are better than one, especially when brainstorming new business ideas and solutions to commerce problems.
Your business partner can help you sort the good ideas from the bad ones and give their expert opinion and feedback. Also, a business partner can give you another view on issues which will ultimately lead to more better resolutions.
The different mix of expertise that you and your partner bring could grow your business further and help your firm to increase sales. Remember, a business partner comes with another set of connections that can improve your companies long-term projections and generate higher profits in the future
Starting a business by yourself can be difficult if you are grappling with finances. Odds are you’ll both you and your partner will contribute capital to the venture. If you do need a business, your loan probably will be approved more quickly and for a larger loan amount together as partners than as an individual entrepreneur.
Investors, especially VC venture capitalists, prefer to fund businesses with co-founders. This is because their experience has revealed that beginner entrepreneurs are less risky if they have a more experienced business partner who completes their skills set. Investors know that launching a business is challenging, and having a partner is a good way to keep your motivation high and build a successful firm.
But do not be discouraged from going it alone. There is value in having business partners, but there are also drawbacks. First, you share profits with them, and you are both equally responsible for the firm. Picking the wrong business partner could make your business fail before it has even has been launched.
Recommended: Best Accounting System for Small Business Quickbooks
Qualities of a Good Business Partner
A startup partner must contribute more than just money to the new company. Take adequate time to be sure that you both have the right combination of experience, skills, and personalities that work well together. If you’re more finance direction, then find someone who is more sales directed and creative. If investor pitching is your strength but the administration of a business is not, then you find somebody who is a great admin.
Be sure you truly like that person. You will be spending much of your time with them as you build your new company business together and you will be more efficient if you mesh. First and foremost this a professional relationship so when you argue try hard to remove emotions from it.
When looking for a business partner find someone who has comparable morals and life values concerning ambition and works ethics. Together with craft a shared mission statement that you both agree upon.
It is useful to obtain a partner who resides near you or whom you can get in contact easily by phone.
Where You Can Find a Business Partner
There are lots of places to search for business partners locally and internationally.
Family and Friends
Begin by looking in your social circles such as family and friends. This is not always the best source for partners if you are trying to find a co-founder with particular expertise.
Starting a business with a family member or friend can be extra stressful. If you end up disagreeing with your business partner, your family issues may get in the way of your ability to come to a resolution and thus lead your new company to fail.
Often the failure of the new business means the end of the friendship also. However, many very successful business partnerships have come from existing relationships, especially spouses, if both people share the entrepreneurial drive and shared success vision.
Professional Industry Contacts
Don’t have a possible business partner in your network then expand your search to your professional and industry contacts.
Co Workers – Past and Present
Are there any co-workers that would be excited to launch a business with you?
Surveying your past work relationships is a great place to begin since you are intimate with their work style and thus you if you can work well with them.
Learn about the most important pros and cons of starting a business with a partner in my in-depth article here
Maybe a schoolmate? Perhaps a classmate has an entrepreneurial mindset? You studied together so you know their work ethics.
Find Business Partners – Outside of Family & Friends
Many entrepreneurs find good business partners by networking.
Search for Meetups – meetup.com and Networking events in your local area. Use these networking events as an occasion to share your business interests. Maybe you will not meet the perfect partner right away but will be building a contact list of business people as professional contacts.
Online Networking Sites
Go to your computer and connect with people on social media and industry forums filled with like-minded people. Twitter.com is excellent for discovering people in your related industry. Also, you’ll learn about upcoming events in your niche that could be gold mines to meet a future partner.
Another excellent source for professional networking is Linkedin. Search for people through your contacts and ask them for mutual contacts and to introduce you to each other. Join the groups for your specific industries and interest where you will form good business relationships.
Online forums give you the chance to connect with others in your field. Use these forums to find people who are genuinely interested in your business ideas.
Business Incubator and Accelerator Programs
These accelerator programs offer opportunities to find a reliable partner. The “boot camp” type training is standard in the technology industry. They are focused on developing new entrepreneurs for the difficulties of business formation.
If you register for a program you will meet like-minded business people; a great, perfect chance to discuss ideas and discover potential partners.
Venture Capital Investors
VC’s are fundamentally considered a source of funding for your venture, but their business expertise can be as valuable as a partner.
If you’re a new entrepreneur, asking an investor who has confidence in your business idea, to introduce you to their industry for possible partnerships, have been successful for many entrepreneurs.
You can meet investors at local networking events, but you could also start searching online sites.
For angel-type investments, The Angel Investment Network has a large number of investors who want to help you with starting a business.