creating a business partnership – Getentrepreneurial.com: Resources for Small Business Entrepreneurs in 2024

Article Contributed by Michele DeKinder-Smith

When a female business owner is considering a business partnership, evaluating her prospective partner based on several criteria increases the likelihood that the match will yield positive results for both parties. While gut instinct and good chemistry may make the partnership friendly and enjoyable, those two components on their own do not necessarily create a recipe for business success. Rather, careful evaluation of specific business-related components of the prospective partner’s personality and experience can lead to entrepreneurial harmony – and business success.

Extensive research with women business owners about all aspects of
business ownership reveals the importance of due diligence when selecting a business partner. Further, research shows there are seven main characteristics to consider in prospective partners. This article discusses the details of two of those characteristics.

Characteristic 1: Suitability for Entrepreneurship

The question: “Is the prospective partner well-suited for being self-employed?”

Although a prospective partner may have great ideas, tons of money, or be a complete sales superstar, that doesn’t necessarily mean she is cut out to be a great businessperson. If both partners have been self-employed before, the question of suitability may be easy to answer. If one of the partners (or neither) has been self-employed, consider the financial risks of self-employment, the self-discipline required, family tension, and the challenges of working at home (if applicable), just to get started.

It is important to realize that even if a prospective partner seems like a perfect match, if he or she is not suited to the entrepreneurial lifestyle, then he or she may end up unhappy or dissatisfied, or even unknowingly causing business problems.

If a prospective partner is cut out for business ownership and/or has succeeded at running a business of his or her own already, then the partners must determine whether they are well-suited to work together. If they’re not sure, they should do themselves a favor and discuss the challenges of entrepreneurship as much as they discuss the possibilities.

Characteristic 2: Compatible Business Goals and Values

The question: “Are there any conflicts around the partners’ business goals and values that would prohibit or jeopardize their ability to successfully partner together?”

Different types of business owners strive for different balances in their work. For a partnership to work well, the prospective partners must determine, ahead of time, how well their goals for business and for work-life balance fit together – and if they are not similar, how the partners can work out the differences.

For example, if one partner sees business ownership as a way to spend more time with her family and the other expects to put in 60-hour work weeks, the two partners may not be compatible. If one partner wants to build a multi-million dollar empire and the other wants to run a small, home-based business, they may not be compatible.

Here are some examples of partnerships between two types of business owners – and their potential high points and conflicts:

• Jane Dough and Go Jane Go: Both are driven to succeed, but for different reasons, with Jane Dough looking for growth and profit while Go Jane Go strives for service and deep customer relationships. To avoid miscommunication, these two types should discuss how to be of service while also hitting profit goals. Also, it is important for Jane Dough and Go Jane Go to keep lines of communication open, because Go Jane Go may tend to shoulder more than her share of work.

• Accidental Jane and Merry Jane: This partnership has the potential to be strong, because both types want life balance and time freedom. One point to consider: finding the right mix of business to deliver sufficient income to make both partners happy.

• Accidental Jane and Tenacity Jane: This partnership may be tricky because Accidental Jane wants an ideal job while Tenacity Jane may seek business growth (although she lacks experience or important skills). To succeed, they must discuss expectations about time and effort, as well as how they will handle financial decisions. Tenacity Jane may also seek a mentor who can help her develop skills that Accidental Jane may care less about.

Women business owners should keep in mind that all partner pairings can work, given a commitment to open dialog and mutual understanding. The best exercise to determine whether your business goals are in harmony – whether they’re two different entrepreneurial types or two entrepreneurs of the same type – is to put together a business plan, or at least start sketching out the process. The business planning process has the potential to reveal significant differences in partners’ long-term goals and approach. Those differences do not necessarily mean the end of a business partnership before it even begins. Rather, a complementary approach, in which partners consider all points of view and arrive at solutions that draw on their mutual experiences, will strengthen all business decisions.

One more key consideration: essential and desirable values. From creativity to risk-taking, and religion to parenting styles, all values come into play when two people work closely together.

If business partners share core values, their relationship will likely be more harmonious and rewarding. It is important for partners to understand each other’s entrepreneurial type and values, to increase the possibility that the partnership will thrive.

When two prospective partners are compatible in terms of entrepreneurial style and experience, and in terms of core values, their partnership is more likely to produce excellent business results that meet both their needs and desires.

About the Author:

Michele DeKinder-Smith, is the founder and CEO of Linkage Research, Inc, a marketing research firm with Fortune 500 clients such as Starbucks, Frito Lay, Tropicana, Texas Instruments, Hoover Vacuums and Verizon Wireless. She parlayed this entrepreneurial knowledge and experience into founding Jane Out of the Box, a company that provides female entrepreneurs like YOU with powerful resources, such as educational blogs, teleclasses, newsletters, and books. Michele was recently named to the National Association of Women Business Owners national board of directors for a two-year term. Buy a copy of her latest book with coauthor Azriela Jaffe, “See Jane Collaborate,” which contains more in-depth information about this article’s topic, at www.seejanecollaborate.com.

Article Contributed by Michele DeKinder-Smith

Business partnerships provide a variety of benefits to women entrepreneurs. For example, women with complementary skill sets or ways of thinking can partner to offer their customers a more well-rounded offering or experience. Women with similar interests and business styles can partner to offer their customers more options. While some entrepreneurs rush forward into a partnership, throwing caution to the wind, others take their time, evaluating every minute detail of a potential partner before signing the papers. Both types of processes can yield a successful partnership – however, due diligence is essential in improving the odds that a partnership will work well for both partners.

Continuing research from delves into the intricacies of business collaboration – and reveals important steps to follow. Based on professional market research of more than 3,500 women in business, research has shown that each of five unique types of business owners has a unique approach to running a business and to handling the other details of her life – and therefore each one has a unique combination of needs. This article outlines surprising trends in creating partnerships, as well as an outline for practicing due diligence before cementing a business union.

Research revealed that while some business owners “went on gut instinct” when pairing up with other entrepreneurs, others partnered with family members they’d known for years, or put their potential partners through a strict rubric before joining with them. While it is entirely possible for a partnership to work out fine without intense upfront evaluation, good chemistry and gut instinct are not the be-all, end-all. That’s why it is essential that business owners carefully evaluate the qualities of their potential partner before proceeding. The more dependent an entrepreneur will be on her partner for personal and professional well-being (including income, stress level, and freedom), the more important a thorough consideration of that individual’s qualities will be. For example, a writer who needs an editor may hire one more quickly knowing that if they do not work well together, the writer will maintain control over her book and can end the partnership quickly, with only time and a little money lost. When the partnership is longer-term, however, or when the partners are reliant on each other’s ability to produce an income, thorough due diligence can save headaches, heartaches, time and money later.

The amount of due diligence a business owner puts into finding the right partner depends, also, on how well her gut instinct usually serves her. For example, if a business owner tends to see the best in people and to give them the benefit of the doubt, she should require herself to perform a higher level of due diligence. Depending on the situation, this may include extensive reference checking or even a request to examine the potential partners’ personal or business finances. On the other hand, if a business owner has partnered successfully many times and found her instincts consistently “spot on,” she may need to invest less time and effort — although any decision that affects a business’ future still merits at least some research.

The bottom line: research shows that many business owners have been burned through partnering with the wrong individual. While it is possible to have a successful partnership based solely on luck and good chemistry, It is imperative that a business owner perform at least some due diligence before leaping into the business equivalent of marriage, to save herself from future headaches, heartaches, lost time and lost money.
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