4 Crucial Factors for Choosing a Business Partner

EXPERT OPINION BY WAYNE AYERS, FOUNDER AND CEO, WHEREISTHEBUZZ @WAYNEDAYERSII

A business partnership can be transformative by opening doors to new opportunities and success. Partnerships also come with risk. Having been a part of many partnerships over the years, I believe there are four key areas to consider: compatibility, expectations and goals, roles, and conflict resolution. These four pillars provide a basis on which any partnership can deliver long-term success.

1. Compatibility

Partnerships work on the building blocks of values and vision. This is not about skill or capability but how two parties match in their approach toward work, challenges, and life. While too much difference in philosophy creates friction, a complementary perspective enables growth.

Early Walker, owner of Chicago-based W&W Towing, sold his towing company to Vehicle Management Solutions. W&W Towing was featured in an A&E series Hustle & Tow.

“Building a partnership that aligns with your business goals is important, but finding one that strengthens your moral compass and amplifies your community outreach is truly invaluable,” Walker says. “For me, it’s not just about the business wins; it’s showing up for the people who need it most.”

It is such alignment of values that has helped W&W and VMS to succeed, especially in their shared commitment to innovation and community service–even down to recent efforts to help with hurricane recovery in Tampa.

2. Expectations and Goals

This means any partnership must start with a mutual understanding of what each person is attempting to achieve. You may end up disappointed if you’re not in harmony about goals or expectations with your partner. Take the time to map out what success looks like for each partner and make sure there is harmony in those visions. Being forthright and direct builds trust.

3. Job Roles

Nobody likes to step on someone else’s toes, especially in a business partnership. Define roles upfront. This will help operations run smoothly, and allow each partner to play to his or her strengths. Ask yourself, “Who’s doing what?”–write it down on paper. Each partner should have a distinct role complementing the other by filling the gaps, not overlapping.

Misunderstandings and inefficiencies abound when the roles are blurred in a partnership. Clearly defined roles mean each partner excels in his specific area of expertise; it prevents redundancy. When all the partners understand what their responsibilities are, confusion is reduced and productivity is raised, each partner doing what they do best.

4. Conflict Resolution

Even the best of partnerships cannot avoid conflict entirely. How you handle them makes all the difference in the longevity and success of your partnership. With no clearly defined plan for resolving them, small issues will grow into significant problems that might threaten to ruin the entire venture altogether.

Thus, a perfect partnership would have an agreement about the method of handling disputes. This could be the setup for regular meetings to sort through any issues that arise before they become huge, or it could name a third-party mediator whenever there is a stalemate. In my experience, most conflicts can be resolved quite easily through effective communication and a compromising mind; having a formal plan in place, however, will help put both partners’ minds at ease.

I have seen too many partnerships dissolve because, when disagreements arose, neither party was prepared to deal with them. This is about giving some real, preparatory thought to how you will deal with it.

The most rewarding partnerships require attention and intentionality to thrive. Keep these four key areas in mind as you pursue and consider new partners, and you will be more likely to achieve long-lasting and fruitful collaboration.

Photo Credit: Getty Images.