How do you find a business partner?

[CSharpwise]

I have run a tiny software business for the past 3 years.

I approached a friend who does BD for a global company and he was interested in partnering with me but his interest faded after several months, which was disappointing, but it was because he was too busy with his full time job. I can't blame him, he's sent loads of work my way and just has too much on his plate.

I've got to the stage where I feel I need a business partner.
Here is why:
Help with sales and business development. Get 3 "good" customers.
Help me stay motivated and on the ball. I slack off a lot due to lack of direction.
Help the business get to the next level. So I can challenge him and he can challenge me.

I don't feel I have the qualities alone to achieve these goals.

How realistic is it to find a business partner outside your circle of people you know?

 

[GraemeL]

Cant motivate yourself in your own business? Need a re-think of what you are doing then.
Sorry but best to do that now.

G

 

[Mayor]

I wouldn't go into business with someone that needed me - I'd only go into business with someone that had something to offer that I couldn't. Then, of course, it is entirely reasonable to assume that they wouldn't need me ! I would only go into partnership with someone in a situation where one of us provided finance, and one provided expertise. I have seen so many friendships, business partnerships (and marriages) end in acrimony because of joint business ventures. Be careful.

 

[DavidP2P]

It is difficult running a business solo, and its difficult running a business in partnership. It is even more difficult having staff and all their ¨issues¨.

Why don´t you scout around for an "accountability partner" that you bounce ideas off and you do the same for that person? It is often easier for an independent 3rd-party to critique and clearly see what we cant often see with our own eyes.

Usually I will only work alongside someone else independently after I know that person for a while, and they have a different/complimentary skillset to mine.

As a business develops it is important to not to sit back and take things for granted. Top business enetrepreneurs have business coaches for this very reason. Accountabilty partners can fill this role for each other for startup businesses. Visit your local business network meetings and express what you are are looking for and what you can offer.

Best wishes,

David

 

[billycan]

You don't need a partner - you need a boss, get a 9 - 5 job.

 

[Tim Coulter]

I am also a software developer, so I know exactly how you feel. You probably think that your strongest skills are technical and that, although you want to be an entrepreneur, there are some aspects of entrepreneurship that seem like too much of a challenge.

Finding a well-matched partner is really hard and, as others have commented, frequently ends in tears if you get it wrong. Nonetheless, if you're determined to go that route, you might consider searching (or posting) on a site like Company Partners.

However, before jumping in with both feet, I would recommend that you try to structure your initial partnership relationship as a loose collaboration, rather than a formal sharing of equity, so that you have a less painful exit route if things don't work out.

Here's an article that looks at some of the problems of finding and working with a non-technical partner:

http://onstartups.com/tabid/3339/bi...er-s-Guide-To-Picking-A-Non-Tech-Founder.aspx

 

[garyk]

I would say you should absolutely look outside your own circle for a partner. Trust me been there done that. Nearly everyone starts a business with someone they know; that is the worst thing you can do.

Tim gives good advice, its not easy and as someone mentioned on another thread a great line which is 'You should spend more time finding a business partner than you should a wife!' thats how important it is

Gary

 

[Tim Coulter]

You should spend more time finding a business partner than you should a wife!

I've tried both of those and failed both times

 

[vitke]

I am also looking for a business partner. Lets keep in contact.

 

[CSharpwise]

Tim gives good advice, its not easy and as someone mentioned on another thread a great line which is 'You should spend more time finding a business partner than you should a wife!' thats how important it is

Gary

Like the quote

I feel like I made a mistake starting my business without adequate contacts. If I could do it again I'd have done more preparation but it was a spur of the moment decision and I really didn't expect to last as long as I have done.

I have considered dipping back into employment for a couple years just to build a stronger and wider network of contacts at the moment I feel I am three "good" contacts too short and at times, between paying work I am so low on money it gets pretty hairy. A suitable business partner would really help here, bringing more contacts.

I actually have made several new contacts in the course of running the business and did get work out of them but I cooled off the relationship because I was not too keen on handling the work they had. I think a more experienced partner would have made sure I stuck with them for the extra cash. Or perhaps not! In software certain projects scream "don't touch", after being burnt a few times you get a feel for this.

 

[Gozy3000]

I am also looking for a business partner. Lets keep in contact.

Me 2

 

[TelesMedia]

What is it that you are trying to sell ?

 

[10032012]

I think you should work smarter, not harder. Putting in excessive effort to find a business partner (emphasis on excessive) is unlikely to reap much awards. You will start to come over desperate and make the potential business partner uneasy.

Finding a business partner (from my own experience) seems to be one of the most difficult aspects in business. Finding anyone to fill the role isn't hard but in particular, the last several years especially , people are more anxious about going into business with someone else. I think statistically you will find that most business partners are not so much friends, work colleagues and business associates, but family and fellow university students in whole.

As a side line project I am currently in a 50/50 limited company tech start up, as of 2 weeks ago, my business partner is a well trusted former employee that happened to recently been talking to in the pub... had a very similar idea to myself and instantly collaborated to turn the idea into something we feel viable. The chances of this though?! So despite I still believe its really difficult to get, sometimes it just happens,

 

[Tim Coulter]

I am currently in a 50/50 limited company tech start up, as of 2 weeks ago, my business partner is a well trusted former employee that happened to recently been talking to in the pub... had a very similar idea to myself and instantly collaborated to turn the idea into something we feel viable. The chances of this though?! So despite I still believe its really difficult to get, sometimes it just happens,

You're right - you can't easily engineer coincidences like that, but maybe it was the fact that you were both actively interested in your respective ideas, that it prompted one of you to bring it up in conversation. In other words, good luck tends to occur in areas where we focus our attention.

I'm curious ... do you 2 have complimentary skills and experience to contribute to the partnership, or is it more a shared passion for the idea? The reason I ask is that I suspect the most successful businesses occur when partners bring together a spread of perspectives (exactly the problem the OP is trying to solve). Is that how your partnership works?

 

[Gozy3000]

What is it that you are trying to sell ?

Marketing, promoting and sales of services.
When I got the idea to start business, something I have been trying to dabble in for as long as I remember. But anyways this was the 2nd idea and the second time I attempted to start a business. I got excited I got about 5 friends together. I told them the idea they jumped on board and we rushed and incorporated the business.

I wish I did research on partnership or found this forum because that was a mistake. I tried to be fair and gave every 1 19 percent and myself 24 I think. Anyways 4 months down the line and thankfully before trading I have pretty much cut the team down to 2. This isn't resolved because they still have shares. Anyways I am just going to start again, and I want a neutral partner not a friend who has missed meetings isn't punctual and so far looks like he is dragging me down.

After this thread and doing research I posted an add on gumtree waiting to see if I find the right partner. Anyways I'll stop babbling on now.

 

[Gecko001]

What is the OP going to offer a prospective partner. He appears to be offering to be the junior partner, but does he really want to be the junior partner?

 

[10032012]

do you 2 have complimentary skills and experience to contribute to the partnership, or is it more a shared passion for the idea? The reason I ask is that I suspect the most successful businesses occur when partners bring together a spread of perspectives (exactly the problem the OP is trying to solve). Is that how your partnership works?

Yeah its complimentary skills and experience - basically creating a team covering gaps in skills - although we are both sharing a passion by filling what we feel is a gap in the marketplace but primarily its we fact we both have different skill sets ( some overlaps too ) .

 

[goodguy]

The problem with a business partners is valuing each other are worth, if one partner bring in a sale, is he due 50% of the profit, as he shares says he does. But is the person who spends 100hrs of work, completing the project, worth the same, and what happens if the technical persons starts bringing in work, what should the sales person get, and what about if the sales person stops bringing in new people but all repeat business, due to technical person great work, should the sales person, be paid for the rest of his life.
The sales person would say yes, as he got the work, the technical person would say no, as he is doing all the work.
Getting a sales business partner etc, is like getting an commission only sales person, in the eyes of the technical person, but a possible issue with a commission only sales person, their drive is purely money, and will always chase more money and opportunities, and always need feeding more.
So will work for a while, as new customers will come, due to his contacts, but when dries up, the issues start, and he will lose interest, and give you less time, and you be back on your own, but with a 50% shareholder.
Collaboration is the best way, then the lines are clearer, he looking after his business, you looking after yours and when best for both you collaborate, if not you don't.

 

[Snowman2015]

You're right - you can't easily engineer coincidences like that, but maybe it was the fact that you were both actively interested in your respective ideas, that it prompted one of you to bring it up in conversation.

I think that mutual interest in an idea, and a respect for each other are what make a good mutual partnership. To know when your partner needs to be pushed and when to be supported, and for him or her to know the same thing.

Relationship balance often differs.
I've taken a driving seat and back seat in the past, and each have their pros and cons.
I've only ever worked with people I know, so that probably influenced our roles and repsonsibilities a lot.

 

[splashernet services]

Sometimes you are better off on your own..

 

[Snowman2015]

Sometimes you are better off on your own..

A lot of times yes

 

[splashernet services]

If you find one, make sure you get on with him/her and also make sure his/her input it's equal to yours, otherwise just DIY

 

[10032012]

More times than not I have had problems with a 50/50 split limited company but anyone saying you are better off on your own is missing the point. The fundamental reason, why you would partner with someone in the first place is that they have something (skills, contacts, experience etc.) that you do not - and its something that is a big barrier to the venture without (i.e. vital).

The only reason you would give ownership away in the venture is because you cannot otherwise afford them as an employee on a competitive salary or you want to entice them with long term incentives (over short term bonuses).

No one in their right minds should consider a joint venture based upon:-

• Two people with similar ideas/skills (two better than one etc. 2x the effort/income/results/profit... obviously only owning half, its no advantage really)
• Using it as a way out of paying the other the minimum wage

Of course due to chance with numbers there will be some people have done either of the above and pulled it off; but its statistically very unlikely.

Some people are really good at their jobs but simply cannot run a business

 

[Gozy3000]

I believe working alone sometimes is the way.

 

[CAEDAN]

Some good posts above, with some great advice. Yes partnerships do fail, and generally have the reputation of never working - I would suggest that is mainly down to partner choice/reasons for partnership.

Most partnerships happen due to one having the finances, and the other the skill. This eventually breaks down, as one has his neck on the line financially and the other feels he is doing all the work, and may as well be employed and paid. This is down to communication really, and lack of understanding of what the other brings forth. One may be work based skill, the other management and financial - the business needs both. There are similar scenarios which cause breakdown in the working relationship based on similar misunderstanding.

The second is poor partner choice - don't look, they will find you! You need to stay focussed, get the work in and then you will become attractive to a possible investment/business partner.

Look at it as finding a wife if you like - no woman would look at a slob in bedsit eating pizza and beer! Same with a business partner - the business needs to look to have prospects.

You first challenge, before you turn down any work is motivation. Learn to motivate yourself, work hard at that first! Some times you have to take on some cruddy jobs when you start - you can pick or choose later.....and don't turn away work your prospective partner gives you!

 

[webgeek]

I'm thinking a couple of motivational videos and just hire a sales person to pound the phone.

Aside from driving sales, the rest seems to be a need to regularly focus and get on with things. Just stay away from the Timothy Ferriss stuff or you'll be working 4 hours a week.

 

[Claire Dymond]

For many years I always believed that if you didn't absolutely need to, then don't get involved with anyone else in the ownership of your business which I've stuck to with my main business since 1986. However the opportunity came along to get involved in two other businesses with two others who had skills I lacked which complimented mine, they have worked very well but I have been careful that shareholder agreements and responsibilities have been watertight including possibilities like death. If you get all this up front there's no reason why it shouldn't work.