Red flags when choosing a business partner

On Behalf of | Oct 1, 2021 | Business Law |

Choosing the right business partner is a critical part of having success moving forward, no matter what type of business you’re starting. If you’re going to partner with someone else, you need to know that they’re the right person for the job.

Unfortunately, many people miss warning signs and find themselves trapped in a partnership that is holding the company back. Here are a few things to watch for. 

You both have different values 

This isn’t to say that anyone’s values are wrong, per se, but they need to line up. If you value the community you’re creating, and they only value profit, it can lead to some confrontations. Your vision for what the company should be could be significantly different. 

They won’t use a partnership agreement 

If your partner rejects a formal contract, that’s a massive issue. That contract should define your roles, ownership percentages, rights, dispute resolution tactics and much more. You don’t want to take the chance of not having one. 

You can tell that you’re working harder than they are

In an ideal world, you’ll split the workload in half. Now, there may be minor variations in this at times, and that’s fine, but be wary if it feels like you’re always working and they barely contribute. You need someone who will invest the same time and energy you will. 

Once you find the right business partner, be sure you know what steps to take, such as setting up that partnership agreement. Additionally, be sure you know your options if this all does lead to a dispute that must be resolved.