Starting and expanding your business or investment program may require you to seriously look for a partner that will facilitate a successful and profitable outcome. Finding that partner can be very challenging, must not be taken lightly, and might be the only way to successfully close the deal.
I have had successful outcomes working with partners in my new business start up, and real estate development projects. I have used the following general guidelines to ease the stress that often occurs in searching for a good partner.
1. Acquire an awareness of each beliefs whether religious, moral or ethical.
Being able to agree, set goals, make decisions, trust, and respect each other are largely dependent upon knowing something about the major influences that affect our lives and business. You want to partner with someone who is trustworthy, honest, and practice good personal and business ethics. To do less is high risk for failure.
2. Identify the expected roles noting the strengths and weaknesses of each party.
Knowing the needs for a successful project along with the strengths and weaknesses of the parties, a good partner brings strength to areas of weakness that may include financial resources, credentials, network, client list, and interpersonal and business finance skills. The more skills you and your partner bring to the table together add great value to improve your chances for achieving long-term success.
3. Discuss your core values for operating.
Shared values and standards are at best the cornerstone of any partnership, but it is the area largely ignored by many who are thinking about or planning to enter into a partnership. I think that most of the time we are blinded by the short term opportunity so much that we forget about the risks. You want your partner to be open and honest and uphold high standards.
4. Discuss the goal(s) of the project or relationship.
Assure that the goals are aligned according to each party desires. A partner that shares your values, entrepreneurial spirit, and vision is most suitable to communicate effectively, make decisions, set goals, and drive the business forward. If you partner with someone that is reluctant, combative, or unable to consider your viewpoint it will be harder to be successful.
5. Write down the partnership relationship.
The purpose of the written agreement is to document the terms, quantify and date the objectives. You may have conversations with your partner over time, but you do not want to rely on verbal communication when it comes to responsibilities and accountability.
6. Test the water on a single deal.
You may want to do a test drive first. Both of you may want to do a simple deal or try a simple project to determine if the partnership plan is feasible. There are some projects where a test run is not feasible, but if available the terms for cancellation or buy out procedure must be clearly written in the agreement.
So there it is, although challenges are inherent, a good partnership can be both enjoyable and profitable
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