This is a conversation I often have with small business owners:

Entrepreneur: Should I partner with a friend to start a business?

Me: Would you marry this person?

A business partnership is not unlike a marriage.

What are the qualities you would hope for in a spouse?  If you are married, what are the qualities that led you to believe you will spend the rest of your life with your spouse?

A business partnership is a long-term relationship with A LOT on the line. Entering a partnership should be made with the same level of commitment that one does when entering marriage.

Identifying A good partner…

Glen Blickenstaff recently wrote this list of 10 questions to ask when taking on a business partner for Inc.Com.  (My notes are in orange.)

  • What do each of you bring to the table?
  • Do your morals and ethics align?  (This is a BIGGIE.  This will define the core structure and philosophy of your business.)
  • What are the division of responsibilities?  (Kelly addressed this last week on the blog. Click here.)
  • How do you handle oversight of the other?
  • Do you have an exit strategy if it doesn’t work?
  • Are you willing to risk the entire relationship over a business venture? – Because you are.  (Review Kelly’s pros & cons here.)
  • Can you both be selfless? Can you putting more value on the venture and the other person than on personal gain?
  • Is there sufficient reward, personal gain, to enter into this? That may seem contrary to the previous question but it really isn’t. This question isn’t about teaming; it’s about capitalism.
  • How are each of you going to be compensated and what happens if you have to forgo a paycheck or even invest more in the business?
  • Can you create a document that outlines everything above?  (This is a partnership contract.  You need one of these!)
Do you have a business partner?  Share with us your thoughts on how you chose to spend your lives together in a comment below.