5 tips for finding the right business partner

As your company grows, you might consider teaming up with someone else to build on each other’s expertise and combine resources. A healthy partnership can fuel business growth and open the door to new opportunities. But finding the right business partner doesn’t happen overnight, so looking in the right places can be the key to finding a good match.

Read on to learn how to find a business partner who can help take your company to the next level.

What you’ll learn:

• Before teaming up with another professional, be clear about why you want a partner and make sure the relationship will benefit you both.

• There are different places you can look to find a business partner, including within online searches, social media websites, your own network and industry events.

• Once you’ve found the right partner, put everything in writing, choose the business structure that works best for you and keep communication open to set yourselves up for long-term success.

There are pros and cons to a business partnership. On the one hand, a partner can bring in more resources and give you the chance to collaborate with a like-minded professional to come up with new business ideas. On the other hand, teaming up with someone else involves sharing liabilities and decision-making duties.

Before you dive into your search for the perfect partner, ask yourself a few questions to determine whether it’s the right time to bring on a business partner. These questions include:

• Do I need more cash? If your business is looking for a financial boost, you might consider partnering with an investor who purchases equity in your company. This type of relationship can also bring added benefits, like access to the investor’s connections and expertise.

• Am I looking for specific guidance? If there are any gaps in your experience, joining forces with someone who has specific industry expertise can be a good idea. Suppose you own a cybersecurity company but aren’t as familiar with the legal aspects of the industry. In this case, partnering with a lawyer can help ensure you and your clients stay compliant.

• Do I want to expand my skill set? You might consider partnering with someone else because they have a complementary set of skills. For example, maybe you own an automotive repair shop because you’re skilled at diagnosing and fixing cars, but you team up with someone who’s better at handling analytical tasks like scheduling and payroll. This way, you’re not stretched too thin and can maintain a healthier work-life balance.

• Am I willing to share decision-making responsibilities? Being in a business partnership usually requires agreeing with your partner on critical company decisions, so look for someone you trust and who shares your values.

There are different avenues you can take to find the right business partner. Here are some ideas:

Industry events, like conferences or trade shows, can be an excellent way to make connections in a short period of time. Because these events typically draw large groups of like-minded professionals and investors, you may have a better chance of rubbing elbows with prospective partners who share your values and goals. 

For example, if you own a marketing agency, you could attend a creative conference that hosts professionals from industries like social media, PR and SEO. Or if you own a bakery, you might attend a baking exposition to find a partner who complements your skills and experience.

In your career, you may have worked with or managed someone with whom you considered partnering. Think about their experience, interest level and how well you worked together in the past to determine whether they’d be a good fit for your company. Even if none of your direct contacts are suitable as a partner, they might be able to connect you with someone in their network who could be a solid match.

Think about people in your own network—like a trusted mentor—when you’re looking for a business partner. You already have a working relationship with a mentor, and they likely know your business goals and ambitions. Even if your mentor isn’t personally interested in partnering, they might know someone in their circle of influence who could be a terrific fit.

Since mentors tend to have an impartial view of your business, without being emotionally involved, they can also help you evaluate potential partners to ensure they’re the right match.

Review the connections you have within your industry by using professional platforms or engaging in other business communities. Leveraging these networks can help spread the word that you’re looking for a business partner and help you reach a wider audience of individuals who might partner with you directly. Even if a contact you find isn’t ready for a partnership, they may be able to introduce you to someone who is interested.

When searching for a business partner, start by evaluating potential candidates’ past experience, skills and communication style. Then have in-depth conversations with them to ensure your visions for the business align. Since you’ll be spending a significant amount of time with your new business partner, be sure to carefully vet them and confirm that you’re on the same page.

The journey doesn’t end once you’ve found the perfect partner—keeping the partnership successful takes ongoing effort. Here are some ways to build and maintain a prosperous working relationship:

• Put everything in writing. Creating a partnership agreement—a legally binding document—is crucial for clearly defining roles and responsibilities. This can help prevent misunderstandings and protect your vested interests in the future.

• Set up the right structure. Choosing the proper business structure can lay a strong foundation to build upon as your partnership grows. Different types of partnerships include general partnerships, limited partnerships, limited liability partnerships, S-corporations and C-corporations. Each comes with its own benefits and drawbacks, so it’s a good idea to consult with a professional to determine the best choice for your company.

• Ensure open communication. A successful partnership means keeping an open line of communication. You can achieve this by making it a point to have regular check-ins and meetings, listening to your partner’s perspective—without getting defensive if there’s a disagreement—and celebrating achievements to promote a positive environment.

Joining forces with a like-minded professional through a business partnership can open up the door to new opportunities and take your company to the next level. But finding the right partner can require some time and careful consideration. 

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