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How to Pick the Right Business Partner



Choosing the right business partner is a crucial decision when starting a new business. The right partner can help you achieve your business goals and set you up for success. Here are key traits and qualities to look for, as well as red flags to avoid when selecting a business partner.

 


Traits to Look For in a Business Partner



Experience  

When looking for the right person to dive into the business world with, you need to ask yourself if they have the right experience to understand the actions and work ethic needed to achieve your business goals.  Experienced business partners can bring lots of knowledge and resources that can help your business grow.  Having a network of contacts outside your industry and inside can be useful when needed.  A big plus about having experience and a valuable network is that it can help you discover information about your competition.   


Financial Stability  

Whether you are entering business as a new or seasoned business owner, having financial stability makes things much easier and smoother.  If you or your business partner are struggling with your finances, it may not be smart tos that will start a busines require some big purchases and fluctuations of money. Knowing your financial status and how it will affect your business is a crucial key to staying afloat within the first couple years of growing your business.  Choosing someone who is financially stable and can help and not hurt your business is one of the best steps you can take.   




Communication  

Starting a business requires lots of communication between the partners.  Having a partner who is easy to reach, whether that be in person, over the phone, or email, is crucial to getting things done.  Signing contracts and documents, making phone calls, and attending meetings in person or virtual are all crucial to the startup of a business, and both partners need to be reachable to make that happen.  Open communication and easy reachability are a must in a business partner.   



Honesty  

Honesty is the foundation of a successful business partnership. Being upfront about financial and personal matters with your partner and business associates is crucial. Honesty builds trust and prevents future conflicts. When one partner is dishonest, it can negatively impact both partners, the business, and your reputation.  

 



 



Red Flags to Avoid in a Business Partner  

 



Lack of transparency 

When looking for a business partner, you want to ensure that they are honest about what they can and cannot do for the business.  Making empty promises can give business partners false hope and cause them to possibly take on too many tasks or make purchases or decisions that should not have happened.  Transparency is key to starting a business that has a strong foundation.  

 




Inconsistency  

When running a business, you need to have a conversation about what is expected of each other and how things are going to get done.  When you have a partner that is inconsistent with their set responsibilities or responding to time sensitive messages it makes it hard to utilize the time that you have and to achieve your goals.  Time management is also something that needs to be consistent.  Sometimes businesses are on a time limit when certain issues need to be taken care of, and when that time comes you need someone who is determined to get things done and does so to the best of their ability.   

 




Inability to handle conflict  

There is a time that may come when conflict arises when starting a new business.  If you have a partner who does not handle conflict well, you may need to revise your plan.  This can look like a partner getting angry at you and putting all the blame on you, simply ignoring the problem, thinking that it will go away or assuming you will take care of it, or the opposite and completely keeping you out of the loop and trying to handle it all on their own.  There’s a reason it is a partnership: you should be able to lean on each other, especially in times of conflict.  


 

Choosing the right business partner involves careful consideration of traits and potential red flags. A partner with good values, experience, financial stability, and excellent communication skills can contribute significantly to your business's success. Applying these qualities to yourself will help you attract a partner who shares your ambition.


 

How Jabbour Law Firm Can Help

At Jabbour Law, we understand the importance of choosing the right business partner. Our experienced attorneys can assist you in drafting partnership agreements, resolving conflicts, and ensuring your business complies with all legal requirements. We offer comprehensive legal services to support your business's growth and success. Contact us today to learn how we can help you with all your business legal needs.





 




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