Check Credibility of your Business Partner
There are different reasons why businessmen perform background checks on different people they deal with. From employees being hired, suppliers of raw materials, and to business partners, executives find it practical and crucial to do their assignments. For the employees that they hire, authenticity of information submitted is important for assessment purposes. Competent suppliers in terms of performance, quality of output, and professionalism, may be hard to find depending on the industry where you belong. You can assess your supplier candidates through background checks. As for your partners in investments and other business ventures, background check is an absolute requisite. Many businessmen employ the use of the internet in performing background checks.
When you have been in the business for quite some time already, you know that dealing with different kinds of people can be laborious, especially when it is in the nature of your business. You need to pull different kinds of masks for the sake of achieving convenience and making the deals work. With background checks, you can assess the partners beforehand so that you know how to adjust the way you interact, as well as your expectations on the person. In addition, you will be able to gain a glimpse of their past dealings, as well as controversial issues like criminal records. The good news is, you can check the credibility of your business partner online. Yes, information on criminal records and other issues that they usually withhold can be found online. This is an essential step that must be taken before you make any deals that involve high-priced contracts and investments.
One way to check the background of your business partner is employing the use of online search engines that are built solely for this purpose. You can find dependable websites that present information about criminal records, family backgrounds, legal problems, and credit standing. If the search engine is really reliable, it might even present data that imply the abilities and skills of a person. Moreover, these search engines for background checks make the information available for everyone, professionals or not.
Of course, you can perform independent searches on your own, especially if the matters in your search pursuits are not that significant. You know that some search engines for background checks bill their clients. Performing independent searches through free search engines can work for those who are operating in a tight budget. This is also ideal if you are only opting for minor background checks.
Performing this step for your business is important because you cannot expect everyone to be agreeable, especially in the realm of business. When they pose some uncertainty in achieving your business objectives and goals, having the right person is crucial. Consequently, you can only have the right person by acquiring certain information through different modes. But as mentioned earlier, some pieces of information are withheld and obtaining them is only viable through professional online background check. It mainly provides business owners enough power to select trustworthy and credible business partners and the result is a more unstained relationship which eventually aids success in achieving goals for both parties.
http://dataflowpk.com/2011/check-credibility-of-your-business-partner/
How to Find a Business Partner?
Running a One-Person Business mentors Paul and Sarah Edwards Respond:
A partnership is like a marriage in important ways, like requiring a high level of trust and the fact that not anyone will do. And, as in marriages, divorce is common; in fact it’ s more so in partnerships. Since the divorce rate is running at 53%, you should proceed carefully in taking an important business risk with less than a 50-50 statistical outlook. Unfortunately business breakups are often unpleasant and expensive. We have tracked over a hundred different businesses since 1989 and for some of our books, we turn to these people for their experience. So when we added a chapter on “Overcoming Obstacles” to Secrets of Self-Employment, we asked our business owners about their worst business experiences. Overwhelmingly, the worst experiences involved failed partnerships. So, when we turned to this same 100+ businesses about a year later when writing Teaming Up: The Small Business Guide to Collaborating, to ask them about the ways in which they collaborated and how interested they were in collaborating in the future, we were surprised to learn that 61% were actively engaged in some form of business collaboration and 70% wanted to do more in the future.
Does hope spring eternal or is there a rational way to explain this? We think both are true. First, there are compelling reasons, such as your own, for finding co-venturers. Second, there are more ways to collaborate than having a partnership, which requires a high level of intimacy, albeit business intimacy. Intimacy does not develop from a contract, however laboriously and carefully drafted.
So our advice in finding a partner is to “date first.” Engage in some of the other forms of business collaboration, such as jointly bidding on projects, subcontracting with another firm or principal, engaging in cross-marketing efforts, or making mutual referrals. It’s a lot easier to find someone for these more limited risks than to find a full partner.
It may be that these lesser forms of collaborating make you more profitable or they may require more time than you realize in financial gain, but since your ultimate objective is to acquire a partner, you can consider this “dating” as an investment.
While you’re engaged in these less-involved forms of collaborating, observe the behavior of the company or person you’re working with, listen to their “war stories,” particularly about litigation or financial problems, and notice your own emotional reactions to the interactions you have. If all signs are “go,” then proceed to proposing.
How do you find people or firms you can collaborate with? You may do it online in listserv groups, on message boards and via their web sites; reading what they write or is written about them in print publications pertinent to your interests. But most people are more comfortable with contacts they make either through referrals by “gatekeepers” and colleagues or through contacts they make at meetings and events. Gatekeepers are often active participants in their professional organizations so attending such functions is a good way to meet them. Since you’re located in Fairfield, driving to the Bay Area or Silicon Valley may not be your favorite use of time, but these areas will provide you with the opportunity to make more contacts.
Resources
http://www.amazon.de/Teaming-Up-Business-Collaborating-Increase/dp/0874778425
http://www.midwestmtspecialists.com/tag/business-partner
The Do’s and Don’ts of choosing a Business Partner
Many business owners start businesses on their own. Others start businesses with a business partner. Many sole business owners grow tired of running everything themselves, find they need more business help or may need to raise extra operating capital and seek out a business partner. It is important to do your homework and choose a business partner very carefully. Business partners can be key people in your daily business life. It is a relationship that needs to last the test of good times and bad. Please choose wisely.
What is a business partner?
According to Wikipedia – Business partner is a term used to denote
a commercial entity with which another commercial entity has some form of alliance. This relationship may be a highly contractual, exclusive bond in which both entities commit not to ally with third parties. Alternatively, it may be a very loose arrangement designed largely to impress customers and competitors with the size of the network the business partners belong to.
We found this great article by David Alison online here.
In the late 80s as a young man I was at a party with my wife’s
family. There were many very successful business people there that I had
conversations with. There was one discussion in particular that I still
remember to this day, over 20 years later. When I told Tony that I was
interested in starting my own business at some point he said:
“David, whatever you do, don’t get a partner. Just do it on your own.”
Funny how some things just stick in your head. At the time he gave me
this advice he owned part of a successful business and he was just a
little older than I am now. I didn’t follow Tony’s advice and in
retrospect I’m really glad I didn’t.
People pick business partners for all kinds of reasons. Most often
it’s because they want to have someone to turn to for help, support and
encouragement. Starting a business is hard work and the motivation you
get from having a business partner is like having a workout partner: you
can lift more weight when you know you have someone spotting you and
encouraging you to push a little harder.
Picking a partner to go into business with is an interesting
challenge, especially when you are just starting out. If you think
finding the right life partner and getting married is stressful, think
about this: in all likelihood you will be spending nearly double the
number of waking hours working with a business partner than you will
with your spouse. That’s a lot of “quality time” to spend with a person.
The Do’s and Don’ts List
Here is my list of the things you will want to do, and not do, when picking a partner to start a business with:
DO: Choose someone that complements your skills.
When you are first starting out you will probably not have all the
skills you need in order to make the business successful. Sure, you’re a
bright person and can learn quickly but sometimes you are better off
finding someone that can really help you get up and running quickly.
Every business has at a minimum two critical areas: Product/Services
and Sales/Marketing. Someone has to build it and someone has to sell it.
You can break it down into increasingly more focused areas but in
general these are the two biggest areas of concerns for a new business.
DON’T: Choose a partner because you really like them.
Starting a business is not about picking friends, it’s about
building the foundation for a successful business. Just because someone
is a great person to be around doesn’t mean they are someone that is
really going to help your business be successful. Before you decide to
ask someone to go in with you on a business you need to make absolutely
certain that it’s because they will add real value to the business. I
have watched (and experienced) this firsthand many times and it has
contributed to business failures and major complications down the road.
DO: Choose a partner that has connections.
If I have learned anything in business it’s the power of networking
with others. If you can find a partner that can help you get in the door
of critical new customers or open that line of credit you need,
excellent. Maybe they have a long list of candidates you want to be able
to hire down the road as you grow. Your partner is doing more than just
working with you, they are exposing you to their network of people just
as you are exposing them to yours.
DON’T: Choose someone that has different goals.
I know this sounds obvious but in the excitement of starting a new
business you may overlook a critical attribute of picking a partner:
making sure you are both shooting at the same target. You will avoid a
huge amount of tension later in your partnership if you are both on the
same page and meet regularly to ensure you still are.
If one of you is shooting for working hard for 4-5 years and then
seeing an equity event because you want sell the company and get out,
but another partner wants to set up a lifestyle business that will
supply them with a steady job and nice salary then there will be
problems. Figure that out up front and save on investing in Maalox by
the case later.
DO: Define how you resolve disagreement up front.
Before you finalize being partners you need to establish how
conflict will be resolved. Trust me, there will be disagreement and
conflict. You need to make it very clear how that conflict is resolved
and ensure that a potential partner buys into that. Put it in writing.
If you only have one partner then don’t set up a 50/50 split of the
company. If you want to make it equal from a revenue/income standpoint
make it a 50.5/49.5 split. Someone has to step up and resolve the
conflict that will happen.
DON’T: Worry about offending a potential partner.
In your excitement to get your business started you may find
yourself walking gingerly around things that you are concerned about
with a potential partner. Maybe you are worried that you will scare them
off or perhaps it’s just not in your personality to bring up sensitive
questions. Stop that, and get it out in the open. If you see something
in a potential partner’s history that you have concerns about, explore
it.
Partners are not like employees. You can fire an employee that lied
to you and, if you handle it properly by documenting it you can fire
them for performance reasons. You can’t do that with partners nearly as
easily.
DO: Check references.
Ask for and call at least 5 people that have worked with a potential
partner, even if it’s someone you know pretty well. If you and your
partner are young, put college professors or teachers on that list. We
all know that people provide references that they know will provide a
positive review, but that doesn’t mean you shouldn’t call them.
Ask how they handle pressure situations, what they get excited about,
specific problems they have resolved. Come up with a list of questions
for the reference that focuses on direct observations they have had of
your potential partner.
DON’T: Compromise on the issue of ethics.
Just because someone has an incredible skill set or the best network
of connections you have ever seen, don’t overlook questions on ethics.
Explore hypothetical situations with a potential partner about ethics.
Things like: “We once had a customer that closed their account and
overpaid it by $20. Cash was tight for us, it wasn’t much money and they
were leaving us anyway – what should we have done?” If the answer to
that one is anything but “write them a check for $20″, you should have
serious concerns.
You will need to trust your partners. They will have access to more
information about you than most employers have and will be in a position
to take advantage of you if you are not very careful.
So should you even get a partner?
Obviously that’s a question that only you can answer. There are
advantages and disadvantages to having one or more partners. I was lucky
to have fantastic partners when we built up WebSurveyor (now Vovici).
We didn’t always see eye-to-eye and there were time we pissed each
other off like crazy but it was easily the best decision I have ever
made to take on both of my partners. I highly doubt the business would
have succeeded without them.
We hope you have enjoyed this article about the Do’s and Don’t of choosing a business partner. This article was sponsored by What’s the Potential.com where you can submit your business idea or concept for $20 and a successful multi-millionaire business-person will evaluate your idea/ concept and return you a written report. Try What’s Your Potential.com today.
Where Can You Find an Investor for Your Business?
Whether you are a small, mid-sized, or even large business that is just starting up, finding investors for your business is one of the first tasks you are faced with. It pays to be well informed as to the number of different choices you have in regards to finding these investors. Start up money is not necessarily hard to come by, but the task of finding it will be made immeasurably easier by being well informed as to the options available. As we shall see, there are some pros and cons to the various investor categories that should also be taken into account. The following are some steps, suggestions, and considerations with regard to finding individuals or organizations who may be willing to put money toward your business startup project.
• First Step: Write a Business Plan
Before looking for any investors, you need to have a well organized business plan. The business plan can be fairly general or very detailed depending on what you feel is necessary, but you need to have something clear and understandable that you can show to investors.
• Investor Presentation
You can also put together some kind of investor presentation to show to investors and make your ideas clearer. The purpose here is to sell the business idea, not merely present it. The presentation can include pictures, video, and verbal content.
• List Possible Investors
Once you have something to show people, the next step is to begin listing investors that may be interested in your project. Making a list helps you stay on track and make sure you hit all the options. You can add to the list as new funding possibilities become available.
• Family, Friends, and Associates
You can begin by asking anyone you know if they would like to contribute to your business and work out the recompense they will get. Family and friends, as well as business associates, may be willing to contribute to your project. This can be structured as literal shares in a company or done in a less formal way. Make sure, however, that those close to you have a good idea of the financial risks and can actually afford to get involved.
• Business Owners of Related Businesses
Business owners of related businesses can also be good prospects for investment. The key word here is “related.” It is unlikely that a business in direct competition with yours will want to help fund you. A related business might be a retailer who will sell your products or some kind of agency that promotes businesses like yours.
• Banks
There are definite pros and cons concerning getting funding from banks. For the most part, banks will not fund small business start ups. They are better borrowed from by large established businesses. Banks may consider a smaller startup company if they have a lot of collateral with which to secure a loan.
• Classified Ads in Magazines
Placing classified ads in business related magazines or responding to ads by investors seeking startups is often a good approach to finding investors.
• Investor Sites
The internet has a wide variety of investor sites of all types. All kinds of people that may be looking to invest money can be found on these investor sites – from casual individuals making small donations to large scale investors. Register for a few, put your idea out there, and see what happens.
• Angel Investors vs. Venture Capitalists
Venture capitalists, as the term is generally used in the business world, are individuals or companies that look for businesses to invest in for the sake of profit. These types of investors, like banks, look for a high degree of probability that their investments will pay off, so it can be hard for smaller or more experimental startups to get any funding from them. Angel investors on the other hand are much more casual sorts of investor that often look for just the sort of startups that traditional venture capitalists pass by.