Your Potential Partner Has the Money, But Can You Work Together?

By: Aaron Bakken | 13,492 Reads | 35 Shares

%3Cp%3EI+can+say+from+experience+that+you%27ll+certainly+learn+more+from+your+mistakes+than+your+successes%2C+but+there%27s+also+limited+virtue+in+making+a+lot+of+mistakes.+One+of+the+best+ways+I%27ve+found+to+avoid+them+is+by+bringing+on+a+partner+who+complements+your+experience.+While+it%27s+still+possible+to+collectively+make+bad+decisions%2C+the+chances+decrease+significantly+when+two+or+more+minds+are+working+together+to+address+business+issues+and+opportunities.+Even+having+a+partner+to+play+devil%27s+advocate+can+be+a+great+asset.%3C%2Fp%3E%0D%0A%3Cp%3EFor+a+partnership+to+function%2C+both+individuals+need+to+know+their+specific+roles+and+responsibilities.+Ideally%2C+there%27s+very+little+overlap+to+prevent+confusion%2C+in+addition+to+a+level+of+transparency+that+allows+both+people+to+know+they+can+rely+on+their+partner.+Trust+is+crucial+in+any+partnership+--+having+gone+into+business+with+both+a+spouse+and+someone+I+just+met%2C+I+can+tell+you+that+both+can+lead+to+failure+over+time%2C+but+you%27re+more+likely+to+have+the+direct+and+often+difficult+conversations+with+someone+you+know.%3C%2Fp%3E%0D%0A%3Cp%3ETo+ensure+you+and+your+partner+have+compatible+visions+for+success%2C+you+have+to+ask+tough+questions.+You%27re+essentially+hiring+this+partner%2C+so+you+need+to+know+as+much+about+him+or+her+as+possible%2C+from+work+experience+to+industry+expertise+to+preferred+communication+platform.+What+does+this+prospective+partner+hope+to+gain+from+the+partnership%3F%3C%2Fp%3E%0D%0A%3Cp%3EIt%27s+important+for+all+parties+involved+to+visualize+where+they+see+the+business+in+five+years%2C+10+years%2C+and+even+further+down+the+road.+It%27s+not+uncommon+for+partners+to+have+different+motives+for+running+a+business%2C+but+as+long+as+your+methods+of+achieving+your+goals+are+aligned+toward+the+same+end+result%2C+the+partnership+can+be+beneficial+and+successful.%3C%2Fp%3E%0D%0A%3Ch2%3EPartners+vs.+Investors%3C%2Fh2%3E%0D%0A%3Cp%3EEspecially+if+you+have+a+promising+idea%2C+finding+investors+is+often+easy.+Investors%2C+though%2C+are+generally+after+one+thing%3A+return+on+investment.+Producing+significant+investment+returns+is+something+that+takes+time%2C+and+investors+might+not+have+the+patience+to+stick+around+long+enough+to+realize+that+return.+A+partnership%2C+on+the+other+hand%2C+is+a+larger+commitment.+A+partner+agrees+on+the+core+objectives+of+the+business+and+plans+to+see+the+business+become+a+success+that+only+later+is+reflected+in+personal+income+or+ROI.%3C%2Fp%3E%0D%0A%3Cp%3EMoney+can+often+cloud+judgment%2C+so+before+it%27s+even+discussed%2C+ask+your+potential+partner+the+following%3A%3C%2Fp%3E%0D%0A%3Ch3%3E1.+What+are+your+strengths+and+weaknesses%3F%3C%2Fh3%3E%0D%0A%3Cp%3EYour+partner%27s+strengths+should+complement+your+own%2C+not+echo+them.+Any+partnership+should+round+out+the+needs+of+the+business.+If+accounting+and+finance+are+your+strengths%2C+your+ideal+partner+might+specialize+in+marketing+and+sales.%3C%2Fp%3E%0D%0A%3Ch3%3E2.+Can+we+be+completely+honest%3F%3C%2Fh3%3E%0D%0A%3Cp%3EEfficient+communication+is+key+--+there%27s+no+time+to+beat+around+the+bush+when+you%27re+trying+to+run+a+business.+If+it%27s+critical%2C+keep+it+constructive.+Communication+should+be+open%2C+honest%2C+and+fair.%3C%2Fp%3E%0D%0A%3Ch3%3E3.+Have+you+ever+fudged+the+numbers+or+modified+the+truth+to+meet+a+professional+or+sales+goal+and+gotten+away+with+it%3F%3C%2Fh3%3E%0D%0A%3Cp%3EIt%27s+difficult+to+assume+your+potential+partner+will+be+honest+here%2C+but+you%27d+be+surprised+how+many+people+can+be+goaded+into+answering+a+question+about+something+they+got+away+with.+Assess+for+yourself+whether+your+partner%27s+story+tells+you+anything+about+his+or+her+constitution+and+provides+insight+into+how+much+you+can+trust+him+or+her.+Be+prepared+to+answer+this+question+yourself.%3C%2Fp%3E%0D%0A%3Ch3%3E4.+What+are+your+business+objectives%3F%3C%2Fh3%3E%0D%0A%3Cp%3EIs+it+all+about+making+money%2C+becoming+well-known+in+the+community%2C+earning+the+title+of+%22successful+business+owner%2C%22+and+other+ego-driven+objectives%2C+or+is+your+potential+partner+ready+to+take+ownership+of+the+successes+and+failures+of+the+business%3F+The+latter+will+require+work+and+patience+but+provides+more+of+what+you+should+seek+in+a+partner.+Just+be+sure+your+partner+is+prepared+for+the+sacrifices+this+may+require.%3C%2Fp%3E%0D%0A%3Ch3%3E5.+Have+you+ever+been+sued+or+arrested%3F%3C%2Fh3%3E%0D%0A%3Cp%3EAgreeing+to+mutually+undergo+a+background+check+and+share+the+results+will+help+ensure+that+people+answer+this+question+honestly+--+and+what+a+person+is+willing+to+volunteer+will+speak+volumes+about+his+or+her+integrity+and+honesty.%3C%2Fp%3E%0D%0A%3Cp%3EIn+many+ways%2C+a+partnership+is+like+a+marriage%3A+You+probably+weren%27t+ready+to+get+married+after+your+first+date+and+vetting+potential+business+partners+should+involve+similar+careful+consideration.+If+your+partner+brings+money+to+the+table%2C+ask+yourself+whether+you+would+be+willing+to+partner+up+even+without+it.+If+the+answer+is+%22yes%2C%22+it%27s+probably+safe+to+proceed.+If+not%2C+you+may+want+to+keep+looking.%3C%2Fp%3E%0D%0A%3Cp+style%3D%22border-top%3A+3px+solid+%23DDDDDD%3B%22%3E%3Cem%3E%3Cstrong%3E%3Ca+href%3D%22https%3A%2F%2Fwww.linkedin.com%2Fin%2Faaronbakken%2F%22+target%3D%22_blank%22+rel%3D%22noopener%22%3E%26nbsp%3BAaron+Bakken%3C%2Fa%3E%3C%2Fstrong%3E+is+a+franchise+owner+with+Rockin%27+Jump%2C+%3Ca+href%3D%22https%3A%2F%2Fshrewsbury.rockinjump.com%2F%22+target%3D%22_blank%22+rel%3D%22noopener%22%3Ea+trampoline+park+franchise%3C%2Fa%3E+dedicated+to+combining+exercise+and+fun+in+a+safe%2C+clean%2C+family-friendly+environment.+Bakken+has+owned+and+operated+several+small+and+medium-sized+businesses+over+the+past+18+years.+He%27ll+be+the+first+to+tell+you+he%27s+learned+more+from+his+mistakes+than+his+successes%2C+and+he+encourages+entrepreneurs+to+get+back+up+and+try+again+each+time+they+fall+down+and+make+mistakes.%3C%2Fem%3E%3C%2Fp%3E

Published: April 18th, 2018