Getting a business partner on board is not an easy decision, whether you’re starting or expanding a company. After all, a business partnership is like a marriage. It often starts with the two of you being enthusiastic about the relationship and ends in legal proceedings once your partnership goes sour. Hence, it’s important to get to know your prospective partner before signing on the relationship.
Here are some of the questions you should ask a potential business partner:
What is Your Financial Situation?
Before getting into a venture together, you need to know the financial status of your prospective partner. Their financial obligations may affect their decision-making in your business. For instance, they may choose to lay off workers to save costs, when in truth, they just want to cut costs to have enough money to pay off their mortgage. In the same way, you also need to be transparent with your prospective partner. For instance, if you took out a personal loan from lenders like Rapid Loans, you must let your business partner know. Even if it’s only a loan, your partner should know this financial information.
How Committed Are You?
It is essential that you and your business partner share the same level of commitment to the business. If the potential partner is a single parent, for instance, he or she won’t likely put the business on top of their priorities. So, get to know your prospective partner. Ask how they usually spend their 24 hours daily to get a good grasp of their present commitments.
How Would You Handle a Tough Situation?
In business, expect the worse situations. There will be a time when you won’t make payroll due to contingency expenses, or the business is slow because of a new, larger competition. Hence, you have to know if your prospective partner has the capability to handle tough situations. Consider asking them how they dealt with challenges in their past ventures to get a grasp of their character.
If you don’t want to end up in a divorce-like situation with a business partner, get to know them as early as possible. Don’t forget to ask them these three questions, as their answers will give you a clearer picture of them as your partner.