Should I partner with another Company?
The question “Should I partner with another company” is what a lot of business owners ask when they consider opening a new business. But this might not always be as easy as it seems, so there are specific questions you need to ask first. Here are 6 questions you should consider asking BEFORE you partner with another company.
1. What’s the financial status of your prospective partner?
If your question is “Should I partner with another company”, one of the first things you have to consider is their financial situation. A lot of people consider going into partnership with another company, as a result of not having enough finances to do it alone. Logically it would defeat the point if your prospective partner in not in a good financial situation. You will have to ask about their personal budget, because the decisions they make in the future as your business partner, will depend on what their personal budget is like.
2. Do I really need a partner or can I handle things alone?
“Should I partner with another company” goes hand-in-hand with “Do I really need a partner”. If you can get certain things done in your company, without giving shares out, it’s a good thing. I have been one of those that made the mistake of “I need to work with someone”, but back at the ranch, I could handle things on my own. Yes, there’s certain things I needed someone else to do, but I realized afterwards that I don’t have to dish out shares just to get these things done. So think twice before you partner with another company.
3. Putting things in writing, will they agree?
This is another crucial point should you partner with another company. A simple “handshake” just does not cut it anymore, we are in the 21st century and if things aren't in writing, people can turn the tables very fast. You have to consider putting in writing what part each partner plays in the business, what their duties will be, but all the other “nitty gritty” things as well—like leave days, commissions as so forth. This can really hurt your business if not done correctly.
4. What do I need from a business partner?
This goes hand-in-hand with the previous tip. Should you partner with another company, you have to be clear on what you need from your prospective partner. Sometimes your own ideas are just not good enough, having a partner whom you can share ideas with, is always a good thing. Bounce ideas off each other and make things happen.
5. Is there something in your potential partner's family life that might make the business a secondary interest?
If your family is your priority, that is not necessarily a bad thing, but if your family is consuming every single minute of every hour of your day, it could become a problem. If your potential partner is consumed by something else than your business, especially during business hours, you might regret it in the long run.
6. How would he or she handle a tough situation?
This should be somewhere near to the beginning…but I have kept the best for last. Should you partner with another company, you have to go and do your research about how they handle a tough situation or a negative review. Having someone on-board that will lash out if a customer speaks their mind, is just not going to work for your business. Do they see tough situations as building block or do they see them as something that can’t be resolved? This can be a real deal breaker for your business.
So if your question was “Should I partner with another company”, use these questions as a guide line to pick the perfect partner. There’s a saying that “the grass isn’t always greener on the other side”, the same applies when you are picking a company to partner up with.