A Business-First Approach To The Practice Of Law

How should you vet a potential business partner?

On Behalf of | Dec 9, 2022 | Business Law |

Even if you have a brilliant idea, very few entrepreneurs can be successful without some help. After all, you may need capital, specific expertise or business acumen to turn your entrepreneurial dreams into reality. Finding the right business partners can make all the difference.

According to the Internal Revenue Service, a business partnership is one in which the partners share in the profits and losses of the venture. As you might suspect, though, some individuals make better business partners than others. So, how should you vet a potential business partner?

Do some research

Thanks to modern technology, there is often a great deal of information available online. Before meeting with a prospective business partner, it probably makes sense to do some research. That is, you should look at social media accounts, professional organizations, writings and other areas.

Have a frank conversation

If your research indicates that a potential business partner might be a good fit, you probably want to have a frank conversation with the individual. When doing so, try to discern whether you and the person see eye-to-eye on business-related matters. Then, you may want to ask for permission to conduct full-scale background and credit checks.

Think about personality

Even if a potential business partner looks good on paper, his or her personality may not mesh well with yours. While you probably do not have to be friends with your business partners, you should find ones with whom you can work productively. Indeed, it might be helpful to listen to your gut.

Ultimately, by fully vetting all potential business partners, you increase your chances of having a successful and fulfilling partnership.

Founding Partners Damaso W. Saavedra and Allyson D. Goodwin