When seeking a new business partner, there are two ways to approach it. One is to look for qualities that you want in that partner, such as skills that complement your own. You need to be able to find someone you can work with and get along with on a daily basis.
On the other side of the coin, though, it could be beneficial to look for potential red flags that mean someone won’t be a good business partner long-term. This can help you avoid making a mistake as you launch your new company. Here are three red flags to keep in mind.
They don’t communicate well
Poor communication between the two of you can cause all sorts of conflicts. Miscommunication can also lead to financial troubles or even issues with the direction the business takes. It’s important to consider communication styles and how compatible you are.
You have different visions for the future
Another thing to think about is your vision for the future or your goal for what you want the company to become. If the two of you are very far apart on these goals, you’ll feel like you are working against one another. You can have differences of opinion, but you need to be working toward the same end goal.
They don’t want to sign a partnership agreement
Finally, a partnership agreement is not legally necessary to start a business, but it’s a good idea. It can define your ownership percentages, how you’ll be paid and much more. If they refuse to sign, it may not be someone you want to work with.
Whether you have encountered a dispute with your partner or you are drafting the paperwork to start a new business, just be sure you know about the necessary legal steps.