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Signs your business partner is bad for you

| May 12, 2020 | Business Law |

Finding someone with a great idea and a passion to succeed isn’t hard — but finding someone to be an effective business partner can be tough.

Before you decide to launch a new business with someone, you need to ask yourself some questions. Does this person have what it takes to be a good business partner? Are there any “red flags” about their behavior that should make you think twice?

Here are some of the things to look for when you’re trying to decide whether or not a business partner is bad for you:

  1. They focus on problems, not solutions. It’s one thing if your partner inserts the voice of reason into brainstorming ideas, but if they seem to always focus on limitations and problems and tend to throw up their hands rather quickly, that tells you they may operate on a default setting that guides them toward tried-and-true methods only. That could eventually cause your business to stagnate.
  2. They don’t trust you. If your business partner has to be involved in every aspect of the business and can’t hand off responsibility, that’s a sign that you’re dealing with a controlling nature that could become burdensome.
  3. You have vastly different value systems. You may think that it’s okay if your personal lives don’t mesh, but personal value systems have a way of carrying over into the professional world. You want someone as your partner whose mission in life mirrors your own.
  4. There’s a big imbalance of power. You may have different skills and abilities, but your power in the relationship should be roughly equal. Otherwise, you may find yourself constantly making all the decisions — or having to accept theirs.

Think you have the right person for your business partner? Find out more about what it takes to make your partnership legit — and avoid legal complications in the future.