Partner

Owning a business in any economy has it's risks. This article will attempt to explain what to look for in a good business partner while owning your own company and the benefits of creating a long-lasting business relationship.

What Makes A Good Partner?

• Most people can't trust anybody when it comes to their craft in fear something will be taken from them. Either they have been hung out to dry or just have no faith in another companies abilities.
• Open line of communication from the very beginning of the relationship and showing continuity, will benefit all sides in the long-term.
• Having similar goals for success.

Billy, owner of a lawn mowing company, called a company (owned by Johnny) that provides only fertilization to keep his mowing accounts green and weed free. Agreeing, since they perform only fertilization, all lawn mowing calls Johnny receives, would be referred to Billy.

Six months had gone by, Johnny was doing a great job keeping the grass green and weed free! Until one day Billy was on the phone with Johnny's secretary discussing a new fertilizing account, Billy asked "Where is Johnny"?, she responds, "He's out mowing our big commercial account"? Obviously his secretary was not included in the agreement between Billy and Johnny. Johnny failed to mention he actually is in the mowing business. Suffice to say the partnership ended immediately. This is a short example of a real life one-sided partnership.

Why would you partner?

Most companies are unaware of the pros and focus more on the cons. Working together on projects or just passing on one others name is more beneficial than you would believe (some would say otherwise). The deal is, when potential clients call for service or product, they usually shop around for the best price. In this case you would have another set of eyes and ears to field calls. Depending on your field, this could mean saving of fuel, hourly wages or time spent away from an already client.

If you're passing along another companies name, benefits may look like this:

• They may pay you for your efforts of project leads.
• Financial gains greater than if not a partner.
• They may offer services or products you don't or vise versa.
• Cut back on advertising and marketing expenses
• Grow sales and customers

Investigate

Without much success, companies have tried to reach out to businesses in the same field and most have failed. Something appealing about this company compelled you to reach out. So you need a basic list that will prepare you when you attempt this vetting out:

• How long in business
• Online reviews(read them)
• Company website
• County, state or federal records

After you've done your own investigation, set up a meeting with owner to get a feel of what you are getting yourself into. Here are some questions you may want to ask:

• Provide references
• Can I contact their suppliers
• How many employees
• Do they partner with other companies

Would I Be a Good Partner?

There are no guarantees in business, especially if you feel your company could be a great partner. I suppose you could ask yourself, "Would I be a good partner"? If you have been able to answer the questions you would ask a potential partner, than yes would be your answer.

As mentioned, most partnerships dissolve or are not a good fit. If you can be honest and open, not just with clients, but yourself, all of your questions will be answered before you make any decision about being a partner.