Why finding the Right Business Partner is so Important

Statistically, there are many reasons why start-ups fail. Amongst others, there is the issue of having not enough capital, hiring the wrong people, or taking too long to launch. However, one the most crucial mistakes you can make is finding the wrong partner to go into business with you.

Why is this so? Well first and foremost, deciding/finding a partner is one of the earliest decisions you can make when starting a business. If you pick the wrong one, one that does not share the same values and vision as you, and who ends up arguing with you over every decision, then how are you going to run a successful, healthy business? Your start-up is more or less doomed from the get-go.

There is a saying that goes “the fastest way to ruin a friendship is to start a business with him”. I most certainly think that this can be true, and is true in most cases. It’s just seems right to think that if you like each other’s company, share the same interests and expertise, you will be ideal partners.

That is wrong, though. Once money is involved, things can turn challenging real fast (If you know/have watched The Celebrity Apprentice you know what I mean). You start arguing and fighting over decisions and shares, and that will impact your friendship in one way or the other, even if you pledge to “keep business and friendship separate from each other”. This of course doesn’t mean two friends can never become partners running a successful company. But do consider this before you partner your best friends: if the business fails, chances are you won't be best friends any more.

So, how do you find the right partner? 

The biggest mistake entrepreneurs can make when choosing a partner is to pick one that has the exact same skills and expertise as them. 

I can’t stress this hard enough. If both of you for example have great graphic design skills and extensive marketing experience, chances are very high that you will end up arguing over every single design and marketing decision. No two marketers are the same. If both of you try to become CMO in your company (note: there can only be one CMO), then we got a problem. This is another reason for why going into business with friends is bad; chances are you two are much too alike!

So, when choosing your partner, think twice about whether you want to go into business with a friend, or rather go to networking events or try to meet people online whose strengths are your weaknesses, and whose weaknesses are your strengths. In many ways, a business is much like marriage (minus the sex of course duh).

Any thoughts on what I posted? Comment below, let me know!

(this is a revised repost of an article I wrote for another site last year, the original one can be found here)