Statistics tell us that over 627,000 new businesses start in America each year. However, a similar number of ventures stop trading each year as well.
If you’re pursuing a new business in 2020, there are many things you need to keep in mind if you want to be successful. One of the most important is finding the right business partners.
If you don’t pick the right people to do business with, you’ll run into all kinds of issues.
To learn more about what makes a good business partner and how to use your network to find the right people to work with, keep reading.
Picking the Right Business Partners
Startups can be expensive. Unless you have significant capital to get your business off the ground (which not many startup founders do), you might need to have someone else on board with you, at least in the early days. When you’re looking for the right person to fill this role, the factors below are the most important things to bear in mind.
This may seem like a cynical place to start, but the simple truth is that it’s the most important thing about any potential business partner. You need to know how much they have to invest in a startup, and how much of that they’re willing to bet on your business.
Decide what percentage of your business you’re willing to part with and the sum you want in return. Unless a prospective partner is comfortable with those numbers, they’re not the person you’re looking for.
A history of success in business is a great indicator of a quality partner. This is especially true if your own experience of the business world is not extensive.
Many passionate entrepreneurs fail in their early endeavors because of simple business mistakes. Teaming up with someone who knows their way around a balance sheet will help you to avoid this pitfall.
Knowledge of the Market
Finding someone with general business skill is a good idea. However, someone with experience in your area of operation will be even more valuable in the long run.
This is particularly useful if your business is in a niche area. If you’re providing a service or making a product that requires a lot of specialist knowledge, someone with general experience may only provide limited value.
Finally, you need to consider how much time and attention your partner will be able to devote to your venture. The best potential business partner in the world isn’t going to offer much if they’re too busy with other projects to spend any time working with you.
If you’ve found the right partner but can’t find something suitable to call your business, it might be worth considering a business name search.
Making the Most of Collaborative Business Ventures in 2020
Picking the right business partners can be challenging no matter what industry you’re operating in. However, making the right choice from the outset will have benefits for your business that could last for years.
If you follow the advice we’ve shared here, you’ll be well on your way to forging business relationships that will take your enterprise to the next level.