Being friends or close pals for years with someone does not automatically make them a viable business partner. There are critical things you have to consider before you start working with someone on a business idea. Obiaks Blog highlights points to consider to avoid a bad business partnership.
Trust
Trust is pivotal for a partnership to stand the test of time. The question is do you trust this individual as a business partner? If the answer is no, just ditch the idea of working with them.
Decide if you want them as partner, employee or consultant
Don't partner with someone just because you can't afford to hire them. It is better to hire them as a consultant than to give away a part of your company or to find out later that he/she is not a good partner for you.
Shared values
Successful partners generally agree on standards regarding what is acceptable and unacceptable. These values guide their actions, judgments, and choices. When partners' values align, they are more likely to make reliable decisions and remain united.
Accountability
Whether you are a startup or an established business, having an unaccountable business partner will someday lead to the collapse of your enterprise.
Partnership agreement
No matter how strong your relationship is now, certain circumstances can threaten and possibly end partnerships. Avoid feelings of regret by proactively structuring an agreement that is fair and protects both parties. If the person does not agree to the agreement, just move on.
Someone you can communicate with
Communication is the key to any healthy relationship, business or otherwise. Partners should be able to speak honestly and openly about everything in the relationship, from a professional and personal perspective.
