Finding a Business Partner

Compiled by Peter/CXO, Wiz4.biz 2/13

Finding a Biz Partner may be more important then finding a Life Partner, because you are apt to spend more time with them.

DEFINITION PHASE

1. Define what you want in a Partner – skills & personality + what functions do you want them to do.

1a. Define Values (& prioritize) – that you want to follow. What is potential Partner’s willingness to comply? Put it in the Contract.

2. Draft Mission. (ie, to provide a Product/ Service (be specific) at a reasonable price that helps Customer to Solve their Problem/s) vs make $$

3. Create a Vision of where you want your biz to be in 1, 3 & 5 yrs.

SEARCH PHASE

1. Ask your Friends & Contacts, if they would recommend anyone. (It’s usually best not to choose your Friends, because you may loose them as a friend & partner.)

2. Post to Startup sites: GoBig.com, PartnerUp.com, PartnerBinder.com + Linked In

3. Screen Candidates according the criteria you have defined. Rate each significant factor. (on your form)

INTERVIEW PHASE

1. Do several Interviews over days or weeks. Interview #1: Review Resume & Biz Briefing, #2 Candidate presents Ideas (of how to run the Biz), #3: Follow up after Reference Check & Final Questions.

2. Create a Form of the Evaluation Questions below, so that you can objectively rate each Candidate.

EVALUATION PHASE

1. How much $$ will they bring into Biz? (a sign of a commitment)

2. How much Time will they devote to the Biz? Put both in the Contract.

3. What are the Partner’s Expectations for the Biz?

4. Will they bring in Strengths to compensate for your Weaknesses?

5. Will this partner have Passion for my Vision – as if it were their own.

6. Will they bring Insight, Ideas & Focus into the Relationship?

7. Will this Partner help me accomplish my goals?

8.Will this Partner understand my Talents and help me to use & develop them?

9. Will we get into new Territory; have new Experiences; will I learn new things?

10. Do I feel a “Connection” with this person and will I enjoy working with them a lot?

11. Can I communicate easily with this partner. Will this Partner be honest with me & even share the bad news, their feelings?

12. Will this Partner challenge me to be the “best” I can be and accept me challenging them?

13. Discuss your Problem Resolution method. Will this Partner be able to accept it and abide by it, without disruptive animosity?

14. Do they have a Balance in life – with their Personal Life? Do they have a Life/ Family that will not be disruptive to the biz?

15. Reference Check: call former employers; meet his x-Biz Partners/ Associates (if possible). Determine how they worked; resolved problems. If they had a business, look at their records. Check Credit History.

CONTRACT PHRASE

1. Draft Contract of authorities & responsibilities, functions assigned and all other significant terms. Have it reviewed by a Lawyer.

2. do Trial Run of 3-6 months to see if you can work together. Make it low risk and easy to part company, if needed.

3. Bootstrap Equity: start near 10% / 10% & retain 80% in company. Each quarter, split another 10% based on performance (on the parameters that you agree on). Have your Board make the final decision.

4. Define an Exit Strategy – terms of termination – in the Contract.

DECISION PHASE

1. How do Candidates compare to each other? Does one stand out above the rest?

2. Trust your Gut after you’ve done all the logical analysis. Trust your intuition on how you “feel” about the different candidates. Now go ahead and enjoy your Partnership.

Comments: Do you have any other factors that should be considered when picking a Partner?