Launching a new business is a daunting endeavour. The statistics are stark: The U.S. Bureau of Labor Statistics (BLS) reports that nearly 45% of new businesses do not survive beyond their first five years. This translates to approximately 595,000 business closures annually, a number exacerbated by the pandemic, which forced an additional 200,000 to shut their doors permanently. While insufficient funding, market research gaps, and ineffective marketing often claim responsibility, there’s a critical, often overlooked factor contributing to these failures: the detrimental impact of a poor business partnership.
Starting a business often involves partnering with someone who complements your skills and shares your vision. However, the success of a business partnership relies on more than just aligning business goals. Understanding the nuanced dynamics of partnering with someone—particularly if they are a current or former colleague—can make or break your venture. Here are eight essential qualities to look for in a business partner, based on insights from Karina Hayat, a seasoned entrepreneur.
1. Passion
Finding a business partner who shares your passion for the business is crucial. This means not only having a shared vision for the organization but also striving toward the same long-term goals. A partner who is equally enthusiastic and holds similar values, will be more invested in moving the business forward. Remember, a great business idea can be undermined by a negative relationship, so it’s essential to do your due diligence in finding a partner who is genuinely invested in the success of the venture.
2. Openness
A good business partner communicates openly and directly. In business, straightforward communication is vital as no one can read the other person’s mind. A partner who provides honest feedback can significantly improve decision-making processes. You need someone who will tell you exactly what they think without leaving you guessing. Open and direct communication builds a healthier business environment, enabling partners to address issues promptly and efficiently.
3. Industry Knowledge
A potential business partner should have a firm grasp of the industry. If you’ve already started your company, you likely don’t have the time to teach a new partner the basics. Look for someone with relevant experience, education, and a proven track record. Having a partner who understands the industry allows you to focus on improving the business from within. Moreover, an industry-savvy partner can enhance your brand’s credibility and visibility, leading to increased opportunities and partnerships.
4. Strong Work Ethic
Karina Hayat emphasises that a strong work ethic is crucial for the success of any business partnership. Ideally, your partner should match your dedication and willingness to put in the necessary effort to achieve business goals. It’s often challenging to gauge work ethic during initial meetings, but previous collaborations or recommendations can provide insights. A partner who consistently demonstrates a strong work ethic will help ensure that the business runs smoothly and efficiently, reducing the risk of conflicts and misunderstandings.
5. Grit
Intellectual connection and complementary skills are important, but grit is a crucial quality that often gets overlooked. Grit comes into play when the going gets tough, and that’s when you need your partner the most. There will always be challenging times, and having a partner with the determination and resilience to push through is invaluable. Grit can be difficult to test upfront, but it’s a make-or-break quality for enduring business partnerships.
6. Diversified Business Skills
A partner with diversified business skills can take on various roles and responsibilities, contributing to the overall success of the business. Look for someone who can complement your skill set, bringing different strengths to the table. For example, if you’re fluent at strategic planning but lack financial acumen, a partner with strong financial skills can fill that gap. This diversity in skills ensures that all aspects of the business are well-managed and can adapt to changing needs and challenges.
7. Previous Successful Experience
A partner with a track record of successful ventures brings a wealth of knowledge and practical insights. Their previous successes indicate their ability to navigate business challenges effectively. Additionally, if your business requires external funding, investors often look for a team with proven experience. A partner with a history of success can instil confidence in potential investors, increasing the likelihood of securing necessary funding.
8. Dedication to Growth
Aligning with a partner who has a long-term vision is essential. A partner who is only in it for quick success may not stick around when things get tough. You need someone reliable, looking five years down the road, and dedicated to finding solutions to the challenges that will inevitably arise. A partner invested in your vision and purpose, with a growth mindset, ensures that you both work toward the same goals and overcome obstacles together.
Conclusion
Choosing the right business partner requires careful consideration and a thorough evaluation of what each party brings to the table. By focusing on these eight qualities, you can find a partner who will help your business thrive. As Karina Hayat’s insights suggest, a well-chosen partner can be your greatest asset in building a successful and enduring business.