We continue with Part 2 of last week’s conversation on finding the right business partner. Below are more tips  on what to look out for in your journey of selecting a business partner for your social enterprise.

Nothing personal, just business

Friends first then we do business OR Business first then we can be friends along the way? Which one would you rather?

You see, getting into business with friends has its pros and cons. The fact that you get along as friends does not necessarily mean that you will make great business partners. Take time to vet your friend as a potential business partner. Make sure that their goals, values and responsibilities are aligned to yours. Ask yourself – do they have a stable personal life? Personal problems are difficult and can affect their professional life, and by extension your business relationship.

It’s okay to do a trial run

In an ideal situation, you should select a partner whom you have had experience working and therefore appreciate their work ethic, style, or culture. However, when that is not the case, do a trial run with the potential partner for a specified period of time before finalizing on the partnership agreement.

 

Consider and plan for the possibility of a ‘break up’

Like in any relationship, disagreements are bound to happen which sometimes may lead to irreconcilable differences with your business partner. Misunderstandings over money and entrepreneurial vision can ruin even the best of friendships and other personal relationships. As a result, prepare for this eventuality with having contracts and other legal agreements in place. Let it be clear on what happens when you decide to part way e.g. who gets what in terms of the stake.

Be honest on expectations

One of the issues that quickly drive business partnerships to their death bed is the lack of clear expectations from the very onset. Be very honest with your partner on what you expect to give and receive. The same should apply to them too. Having clear expectations will put the both of you on the same page and helps to minimize conflict.