5 things you need to consider before choosing a business partner

Big business is based on big partnerships, but at the same time, big business can be destroyed by bad partnerships. Six successful American entrepreneurs talk about their experience and the mistakes they have made in choosing business partners. Before doing a partnership, one must consult a business plan writer to make a better strategy.

1. Trust instinct

The first two criteria for partnerships are 1- you must like the person and trust him; 2 - you have to bring something extra to the business, something you can't offer. Pleasing someone and trusting him are two subjective things, but I have learned to trust my instinct. If I feel something is wrong, I can't go on.

One of the biggest mistakes and what you can do is when the partnership does not clarify everyone's roles, boundaries, and compensations, and when it is not written on paper. Although it is important to trust each other, it is important to make sure that they are clearly written on paper before you begin. People often interpret and understand differently if they are not put in writing.

2. Have known your partner for at least a year

Before entering into a business partnership, my top criterion is to know that person for at least a year (Some psychological and scientific studies say that people show who they are after a year.) It's like and in life: you know someone before you get married. A business partnership is like a marriage. So, you need a period of knowledge before going into business together. If the partnership doesn't work, move on. It's like choosing after three meetings that you don't fit in with that person ... no long-term commitment is made. It's okay. You can move on.

The biggest mistake that you can do about membership is to do it far too quickly. Make sure you emphasize the responsibilities of each partner. Otherwise, all activity may be blocked. Agree, write your partner's responsibilities, your rights, and exit strategy. Something like, "You'll work about 30 hours for tasks A, B, C, and five hours for task Z." The clearer you are, the less likely you are to fail. - Tai Lopez, an investor and consultant for many multi-million dollar companies, has built an eight-digit online empire connected to Facebook or Snapchat

 3. Use math but don't forget to have fun.

Partnerships can be wonderful, but they can also become your worst nightmare. Use math to decide the right partner. Yes, you got it right, math. If one plus one equals two, it is not the right partnership for you. One plus one must be equal to three! A partnership must be more than the sum of its parts; otherwise, you may as well outsource different parts of your business.

Also, your partner should be better than you at certain things. I have often seen that people's egos prevent the creation of great partnerships. Some feel threatened by their partners' skills and have not been able to achieve a great vision for their business. "The father of advertising," David Ogilvy said you should hire smarter people than you. "In the end, you need to make sure you have fun. After all, it's a long-term commitment to a business marriage. A deep part of your life, and you'll go through a lot of ups and downs together, but what's the point of not having fun? If you don't have fun, the partnership won't last. "Roberto Orci, super producer, and screenwriter at Holywood whose movies and TV shows have grossed over $ 5 billion worldwide

4. Scan the way he thinks. The

The first thing I do with a potential partner is to analyze my personality and brain and how I scan it. It is important to know the type of personality you are dealing with because it is like a marriage. Secondly, I am looking for people with abilities different from mine but who share the same vision. If you are an extrovert, look for an introvert. If you are the company's image, you may need a person to operate efficiently behind the scenes. Also, if you are that operative person, you probably need someone more extroverted.

The greatest error I have had in collaboration was to engage with three other partners. Too many chefs are said to ruin the broth. I figured more personalities had many thoughts, but there are many personality differences simultaneously, challenges that are slowing down. Two or three couples are the ideal situation, but four are now too many. -- James Swanwick, Swanwick Sleep CEO and No Alcohol Challenge over the 30-day duration

5. Put it all on paper

We have formed partnerships based on relationships and which are win-win in the long run. The contract becomes a way of understanding between the partners and an insurance policy in case management changes. To get there, two things need to be clarified: One: core values. A partnership agreement must allow both parties to develop trust through mutual understanding. Trust is needed when things get difficult, and the relationship is strained. Two: business experience. We share business experience and make sure we start right.

This includes both the commitments and the expectations we have of each other, and once openly communicated, they can be. We also share our fears and wishes regarding the partnership to be addressed in the planning phase, rather than at a point of conflict. All this allows creating a healthy, profitable partnership that resists business tensions:- Chris Plow, Entrepreneur Advisor, and Series 6 Entrepreneur.

Don't be afraid to move on. A partnership is also a personality test. It helps you develop an awareness of your way of working and better understand how your partner works. But there is a difference - ideally, you want to balance each other, but at the same time, you do not want to be too different in ideas. Make sure the end goals are aligned. For example, do you want to operate as a passive lifestyle business or sell and get many huge numbers? How many hours a week do you want to dedicate to the business? What staff do you want to hire? Do you have other projects or commitments that will conflict with management?