Sometimes lessons that you learn leave you jaded and hard. It is the difficult paths that we have walked before that we are careful to choose again. I hope that those who read this can learn from this lesson that I learned first hand. This is a very important lesson.
Choosing partners to start a new business happens everyday. Sometimes, people become so excited about the idea of the new business that they overlook attributes in their partners. They overlook many things in order to get the baby born. I have learned this lesson first hard. I had a partner who did not live up to her promises. It was only after the hard work of other that she wanted to become involved, after the business was profitable (she also had other non-business related motives). Keep in mind that a problem partner will always be a problem partner. If they are tough to take in the beginning, they will be unbearable later on.
So here is a list off must do's before entertaining the idea of a partner. This by no means is a catch all. Please feel free to send me some additions. These focus on their histories being an indicator of their future promise.
- Spell it out: Define the role and commitment level of each partner, down to the hours of the week that they are going to work on this project. Sign this document!
- Understand Outside Activity: Find out where their heart are. Are they working on outside projects? Are they 100% committed to your project?
- Talk to old partners/business associates: This is where I failed. People build a reputation over a period of time. What is the partners reputation like? DO NOT TAKE THEIR WORD FOR IT! Ask around, take your time. Talk to co-workers, business associates, employees and anyone else who knows this person. Failures are ok and expected, but what is their success ratio. Who invested in these ventures, how do those people feel about them when things went south.
- Google them: But don't trust the press releases, websites and any other media which they might control. You can use this to validate history, but, take it with a grain of salt.
- Background check: This is a must. This will tell a lot about a person and their credit/legal history. Someone with bad credit will have a negative impact if you need to borrow or raise money in the future.
- Trust your Gut: You know what the right decision is already. If you have any hesitation you already know what you should do.
- Trust Someone Else's Gut: Chances are you know someone who can pick people out. Get them to spend some time around this potential partner. Their bull-shit sensor will be better tuned than yours.
- Ask a mentor: To this day, I have people who teach me lessons all the time. These mentors help act as a unbiased sounding board. If you do not have a mentor, there are places such as SCORE that will introduce you to older business people.
Great partners are the complete opposite. They are people who compliment your skill set and who from the beginning are committed 100%. They are also very difficult to find. Here are some ideas of places to look.
- Family & Friends: This is a double edged sword. These are the people that you trust the most, but sometimes these feelings get in the way. Be careful, but that said I have always done very well with family. You can't beat their commitment
- Co-Workers: This is great because you get to see how they work. Are they committed to task? Do they get their work done? Are they a dreamer but not a doer?
- Business Associates: Since they are in business, they have a reputation and history. Do you have friends or associates in common? Ask their opinion! This is a good group if you can find many good opinions about the potential partner.
- Church/Community Groups/Universities: All these areas have many people who know the potential partner. The more positive opinions you can get the better.
Cheers,
Mike
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