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Do you remember when you first decided that being an employee just wasn’t enough for you? You wanted to do something more, to be part of something that was meaningful.
You might have even had a unique business concept but realized that you were more of a big picture person. You are not alone. Being a sole proprietor is how many organizations start off but often quickly realize that there is just too much too be done. A couple of years ago I had a brilliant idea for a fashion clothing line. Yeah, yeah, I know how many times have we heard that line before? But the difference was that I wanted to start something that was unique in terms of the way that the clothes were designed and perhaps, down the road pursue a design patent. But I quickly realized that I was in over my head. I was in so deep that my first instinct should have been to spend significantly more time reading up on the fashion industry and perhaps even sitting down with a fashion consultant. Then once I better understood what I was up against I might have decided that this was not even the best utilization of my time.
 Instead what I did was unwisely invest in digital design software programs, a t-shirt press machine, and figured I would just sort of learn on the fly. Subsequently I realized that I needed to find a business partner who would focus on the creative end of design while I focused on structuring the business model, marketing and eventually pursuing investors. After two failed attempts at finding the right business partner I surmised very quickly that I had not gone into the business venture with both my feet firmly planted on the ground. I thought I knew what I needed in a business partner but I really did not. So here are a few tips for the would be Entrepreneur aiming to move forward with starting a company, who recognizes the need for a business partner.
1. Look for someone who is just as passionate about the business concept as you are: This is a critical first rule of thumb. It is often assumed that someone who indicates that they want to go into business with you is as passionate about YOUR business concept as you are. Don’t assume this to be a fact. There is a difference between a passion for an industry or concept, and a solid belief in your idea. You need to know up front where they stand and what their future goals are. If they are interested in the industry but seem evasive about long term specifics, they may simply be trying to figure out how to steal any good ideas that you may have to use for their own future enterprise. Of course from a legal standpoint you want to get a NDA (Non-disclosure Agreement) to protect your ideas. Still, if the individual is not as excited as you are about the business concept then they are not going to be fully vested in the idea and will eventually just walk away.
- Assess what skills a person brings to the table and how those skills can be properly utilized: Once you have a check list of what skills an individual brings to the table then you know how to present the opportunity to them. This can take place by presenting them with a 30 second elevator speech regarding the basic concept of the business. Potential business partners are looking for different types of working relationships. There are those business partners who are more interested in simply getting a return on their investment (ROI) and therefore don’t want to be very visible or involved in the everyday operation of the business. Such an individual may be more inclined to embody the role of a negotiator, capital fundraiser for the business. They may simply require a package of information to distribute to prospective investors and people of influence within their various networks.
If there is a situation where a business partner would need to be more involved in the everyday aspects of the business try to be as specific in terms of communicating how you envision utilizing their skills up front. This will ensure that there is no confusion. At least that way you also give them the opportunity to make an informed decision in terms of whether or not they want to accept the opportunity.
- Use a service like PartnerUp (www.partnerup.com/): According to their website here are a few important facts about this company:
- Founded in February 2005 as the first online community focused on bringing business people together.
- Bringing potential business partners, executives, board members, and skilled professionals that they need to make their venture a success.
- They help professionals find opportunities to use their skills and experience with emerging companies.
- They were created out of a personal need to find business partners for business endeavors they had attempted in the past.
- Don’t be afraid of creating internship opportunities: Often the most untapped market in terms of skilled labor is those who are in school. This is especially true as it relates to schools that teach technical skills. Those students, who may specialize in knowledge management, IT, computers, or even a field such as e-commerce marketing, are excellent prospects. Now you may be wondering how they fit the mold of a business partner? I am glad that you asked. If you have the ability to develop someone in an internship capacity then you have the advantage of not having to paying them premium dollar in order to utilize their services. It gives you the chance to “test drive” them and vice a versa. If they are a good fit then perhaps you can consider offering them a permanent position in the near future.
Ironically as I write this article, I am sitting in a computer lounge area. During my creative session I noticed a young woman sitting at a computer station who was having difficulty accessing the internet. There was a young man that was waiting with his friends not far off perhaps hoping to get on to one of the computers once they became available. Suddenly and somewhat abruptly he jumped up from his seat and sauntered over to the young woman, who by now held her hands to her forehead from stress and growing frustration. “Hey would you like some help getting online?” The young man asked her. She indicated that she would and in approximately one to two minutes he was able to diagnose the problem and with a few clicks get her online. She of course was amazed and said to him, “Hey I don’t know what you just did but thank you.” And went online to complete whatever she had initially intended to do. How beneficial and efficient was having that young man in the room at that moment, to the young woman? You guessed it, to borrow a line from a famous commercial, “Priceless!”
The moral of that story is this, even though help came from a young guy who appeared to have little experience and value he actually was invaluable to that technical situation. Therefore, even though an internship may cost a company planning time and logistical set up it is worth it. In terms of this scenario the out of pocket cost for the young woman was in fact nothing. This is not to encourage you to exploit young talent but to recognize that having a willingness to facilitate an internship opportunity often creates a win-win scenario. It serves to provide the intern with invaluable experience, future recommendations, and growth opportunities. It simultaneously provides you the business with valuable manpower and an opportunity to harness innovative ideas with minimal risks. Eventually the relationship may grow into a partnership or the intern may be promoted to some other leadership position within your company. This will undoubtedly require a more significant financial investment to retain their future services. Still, at least you will have the opportunity to build the company’s revenue stream first before having to take on more costs.
- Network, Network, Network: There are many opportunities to get the word out and to prospect for potential partners. These include State and Local Chamber of Commerce’s, City Business luncheons, as well as other Organizations that you can become a participant in. Make sure to hand out your business cards and again be prepared with your 30 second elevator pitch. Also gather as many business cards as possible that you can for future follow up. Sometimes finding the right business partner is simply a matter of timing. Perhaps six months ago a prospect was tied up with other commitments and could not properly evaluate your business proposition. If you are willing to wait you just might catch a BIG FISH!
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