How to Investigate Future Business Partners + Take Care of Your Business.

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Let’s set the record straight. I am a fan of strategic business partnerships. However, partnerships often fall apart…majorly. Generally, entrepreneurs fail to address key issues up front to make sure the partnership is an ideal move for all involved. This week, I asked my cyber peeps:

What do you fear the most about entering a business partnership? Would you ever partner with a friend? If not, why?

Our cyber peeps said they have experienced the following issues in business partnerships:

  • Time and money management.
  • No solid foundation for the partnership.
  • Business partners didn’t see eye to eye on work ethics.
  • Friendships got in the way of business.
  • No universal vision.

And, the main fear was:

A business partner who fails to carry his/her weight.

How do you avoid the mess?

Do your due diligence. 

In yesterday’s post, “ObamaCare, Cool Kids + Smart Business Partnerships” we suggested asking any potential business partner for references from either past clients, or partners.

Your future business partners might hate me but I also recommend that you…

Investigate them their current or past businesses.

A great site to run a quick Business Background Check is KnowX.com. These searches generally cost $24.95, and is a great way to gather preliminary background information. Things to look at are:

  • Judgements or liens against the business
  • Previous lawsuits
  • Bankruptcies

Don’t feel bad.

You are running a business.

Gathering this information will give insight on how the owner conducts business and whether it works for you or not. Trust me, it’s much better to do your research on the front end, rather than being a victim of Partnerships Gone Bad on the back end.

What if they’ve never owned a business? I honestly would consider the value of partnering with someone who has not yet experienced business ownership.

Tomorrow, I will discuss the top questions that you must ask any potential business partner.

 

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