how to approach a potential business partner​

People often say that starting a business is like climbing a mountain. There are a lot of hard things to do, unexpected turns, and beautiful views along the way. Some business owners decide to do this climb on their own, but many find that having a partner makes the journey easier and more rewarding. The right business partner can be your best asset. They can bring skills that complement yours, a shared vision, and important help when things get tough.

But picking a business partner is one of the most important choices you’ll ever make. This relationship could make or break your business’s future. A strong partnership can help your business grow, but a weak one can cause problems, stop progress, and even cause it to fail. This is why you need to carefully plan how to approach a possible business partner.

From the first self-assessment to keeping a healthy, long-term relationship, this guide will help you through every step. We will talk about how to find the right people, make a good first impression, and set up a strong legal framework for your work together. If you follow these steps, you’ll be able to find a partner who not only agrees with your vision but also has the skills and commitment to help you reach it.

Begin with a Self-Assessment

You need to know yourself and your business inside and out before you can find the right partner. It’s easy to get excited about potential partnership opportunities, but without a firm grasp of what you bring to the table and what you genuinely need, you risk choosing someone who isn’t the right fit. This first step of looking inward is not up for discussion.

Find out what you are good at and what you are not good at.

Make a list of your own skills that is honest. What do you do really well? You might be a great salesperson, a creative visionary, or a financial wizard. Be clear.

Next, be very honest about your flaws. What do you have trouble with? You might not like running the day-to-day operations, find marketing hard, or not know enough about technology. Don’t think of these as problems; think of them as chances for a partner to help. It’s not about finding someone who is exactly like you in a great partnership. It’s about finding someone whose strengths make up for your weaknesses and the other way around.

Figure out what your business needs

You can now figure out what your business really needs now that you know what your skills are. Consider the most important tasks that need to be done for your business to be successful:

• Making new products and services: Do you need a technical co-founder or someone who knows a lot about the industry? Is your weakness in sales and marketing when it comes to getting customers and building a brand?
• Do you need someone to handle the books, the supply chain, and the daily logistics for operations and finance?
• Strategy and Vision: Do you need someone who can help you plan the company’s long-term direction?

Putting these needs down on paper will help you figure out what kind of partner you want. This profile is like your North Star as you start your search.

Identifying Potential Partners 

Once you know who you want, the next step is to find them. Business owners looking for partners need to be strategic and proactive in their search. Your perfect co-founder is probably not going to just show up at your door.

Networking Events and Industry Conferences 

Events that are specific to your field are great places to meet people who think like you. A lot of the time, people who go to these events are really interested in their field and open to new ideas.

• Get Ready: Be ready with a clear and short elevator pitch. Don’t just talk about your idea; also talk about the problem you’re trying to solve and the kind of partner you want.
• Talk Less, Listen More: Talk to people about their jobs, the problems they face, and their goals. You might find someone whose needs are exactly the same as yours.

Websites

It’s easier than ever to connect with professionals all over the world thanks to digital platforms.

• LinkedIn: You can use LinkedIn’s search filters to find people with certain skills, job titles, or experience in a certain field. Interact with their content, send them personalized connection requests, and be clear about what you want.
• Dating Sites for Founders: CoFoundersLab and Founder2be are two websites that are made just for connecting entrepreneurs. You can make a profile on these sites and look at other people who are looking for a business partner or investor.

Your Current Network

Don’t forget how strong your personal and professional ties are. Let your friends, family, former colleagues, and mentors know what you’re looking for. The best way to get in touch with someone you want to work with is often through a warm introduction from a trusted contact.

The First Contact and Screening

You have found a few good candidates. So, what do you do first? Knowing how to introduce yourself to a possible business partner is a skill that combines being professional with being interested.

Writing the First Message

Your first contact, whether it’s an email or a LinkedIn message, should be short and to the point.

• Show that you’ve done your research: Say something specific about their past, a recent project, or a connection you both have. This shows that you’re not just sending out a lot of junk.
• Make your point clear: Tell them a little bit about your business idea and why you think they would be a good fit.
• Suggest a brief, low-stress meeting: Suggest a virtual coffee or phone call for 15 to 20 minutes to talk more.

The First Call for Screening

The point of the first conversation is not to make a deal, but to see if you and the other person are compatible. Focus on alignment at the highest level.

• Shared Values: Are your core values similar? Do you have the same level of honesty and work ethic?
• Mutual Vision: Do they get excited about your idea? Do they see the same possibilities that you do?
• Style of Communication: Does the conversation seem to flow naturally? Are you at ease and respected?

If there are major red flags in this initial stage, it’s best to walk away. It’s much better to keep looking than to force a partnership that doesn’t feel right from the start.

Going Deep into Conversations

If the first screening goes well, it’s time to have more serious talks. Here is where you tell the whole truth. There is no room for negotiation on transparency. Here are some questions to ask a possible business partner to make sure you’re on the same page.

Goals, Roles, and Responsibilities in Business

• Long-Term Goals: What do you both think the business will be like in five or ten years? Do you want to start a business that fits your lifestyle, build a global brand or buy a business quickly?
• Setting Roles: Who will be CEO? Who will be in charge of sales, marketing, or technology? Clearly defined roles keep people from fighting over territory and make sure everyone is responsible. Talk about your strengths and weaknesses honestly so that you can divide up tasks in a logical way.
• Time Commitment: Are you both planning to work full-time? How will their equity and responsibilities change if one person works part-time?

Equity and Financial Contributions

Money can cause a lot of stress, so talk about it directly.

• First Investment: How much money can each partner put in? If one partner puts in more money, will they get more equity?
• How will you split ownership? A 50/50 split is common, but it’s not always the best choice. Think about things like the original idea, the money you put in, and the time you have to keep working on it.
• Pay and Benefits: When will you start getting paid? How will you figure out the amounts?

What if you want to start a business but don’t have the money? You might be wondering how to join a business without having any money. Your “sweat equity” in this case is your skills, time, and work. Be ready to show how valuable you are and work out an equity stake that shows it.

Ways to Get Out

It may seem strange to talk about the end of a partnership before it even starts, but it’s very important. What happens if one of the partners wants to leave? What if someone offers you a buyout? Talking about possible exit scenarios makes sure you have a plan in case things go wrong.

Do a lot of research before making a decision.

You and your potential partner have talked about the hard things and you feel good about them. It’s time to check now. Trust is important, but you shouldn’t just give it to someone.

• Checks of the Past: Check their credentials, work history, and education.
• Sources: Talk to people you used to work with, your boss, or a business partner. Find out how they work, how they work with others, and how honest they are.
• History of Money and the Law: It’s a good idea to look for any bankruptcies, lawsuits, or large debts that could hurt the business.
• Reputation: What do people in the industry think of them? A quick Google search or a look at their social media pages can tell you a lot.

Start with a Test Period

Think about taking a “test drive” before you sign a contract for life. A great way to see how well your partnership works in the real world is to work on a small, well-defined project together.

• Set up a small project: Choose a task with a clear goal and a deadline, such as developing a prototype, creating a marketing plan, or conducting market research. 
• Watch the Dynamic: How do you deal with differences of opinion? Are you good at communicating? Does everyone do their part?
• Look at the Results: Be honest about how the trial period went at the end. Did you get along well? Did you reach your goal? This trial run can either solidify your decision to partner or reveal incompatibilities before you’re legally bound. 

Finish with a contract that is legal

A handshake is never a good way to start a business partnership. You need a full legal agreement no matter how much you trust your partner. It keeps both of you safe and gives you a clear plan for how the business will run.

Get a lawyer to write a partnership agreement that includes:

• How the business is set up: (LLC, C-Corp, S-Corp, etc.)
• Roles and Duties: Clearly stating what each partner is responsible for.
• Capital Contributions: Keeping track of who put in what.
• Equity and Ownership: Explaining how much of the business each person owns.
• How will big decisions be made? What happens in a deadlock? 
• Sharing Profits: How and when will profits be shared?
• Dispute Resolution: A way to settle disagreements.
• Exit Clauses: What will happen if a partner dies, gets hurt, or wants to leave?

This is the constitution for your partnership. It may feel like an unnecessary expense at the start, but it can save you from immense financial and emotional turmoil down the line. 

Keeping a Healthy Relationship

It’s just the start to find the right partner. Nurturing that relationship is an ongoing process. 

• Schedule Check-ins on a regular basis: Make time every week to talk about your goals, progress, and problems. This ensures you both stay aligned. 
• Talk to each other openly and honestly: Don’t let anger build up. When problems come up, deal with them in a polite and constructive way.
• Celebrate Wins Together: Recognize your achievements and celebrate important events. This boosts morale and strengthens your common goal.
• Respect Limits: You are business partners, but you are also people with lives outside of work. Give each other space and time.

Are you ready to find the right person for you?

Finding and building a successful business partnership is a long process, not a quick one. It takes being aware of yourself, doing a lot of research, being honest with others, and having a strong legal framework. The rules are the same whether you’re trying to get a big company to work with you or find a co-founder for your new startup: choose carefully, make a detailed plan, and talk to each other all the time.

If you take the time to do these things, your chances of finding a partner who is not just a coworker but a real ally on your business journey will go up a lot.

Business Kiwi’s experts can help you if you’re an entrepreneur who needs help figuring out how to make strategic partnerships or how to deal with the challenges of growing your business. Get in touch with us today to find out how we can help you grow a successful and long-lasting business.