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So the question is pretty basic, what are good qualities in a business partner? As a young freelancer I want to expand my business into a much larger company and I know I will likely need to partner up with one or more people to make it happen.

  1. What are absolute requirements?

  2. What would be beneficial but not necessary?

  3. Where would be a good place to look for business partners?

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9 Answers

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I think what makes a great business partner can vary from business to business and founder to founder. I think the key thing is that you need to have someone who you generally get along with well on a day to day basis. You need someone who you can trust, and who you know will dedicate themselves to building the business. Someone with complementary skills is also a big bonus. I know that in our company, it always seems that problems I am not capable of solving, my co-founder is capable of solving, and vice versa. This better helps our company tackle complex challenges and get work done efficiently.

It's also important to have a co-founder who is going to challenge you. Who will constructively argue with you over important issues and make sure that you are thinking about things critically.

One piece of advice I would give is that I would caution someone who is searching for a co-founder, with whom they don't already have experience working with. I believe that it's comparable to being on a dating site and looking for someone who you plan on marrying right away. I think that it is extremely beneficial to have had prior professional experience in working with your business partner, as it's important to know exactly what their skills are, how dedicated they are at work, and whether or not you'll get along over the long term.

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up vote 1 down vote

Something never mentioned is similar interests. Depending on your living arrangements this could be more important than you think. When I was looking for a business partner it never entered into my equation but now living with one another in a small location listening to obscure radio 12h every day, I'm extremely glad he has the same interests as I do. I'd go mad if I had to listen to pop music but equally, some would hate to spend hours on end listening to old school rap, 'tallo disco and electronica.

On top of that I'll echo some previous comments: The person should not need to be “managed”. The passion to become the best at what they do. - Does this person have values you hope/wish you had? Would you hire the person if it were a hiring decision? - More than that, would you pay double?

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up vote 1 down vote

A person who behaves well and makes rational decisions under stress. Each business has its ups and downs. If a business is hit with a nasty lawsuit, a key developer leaves, a major contract is lost - the last thing you want is your business partner to panic.

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up vote 2 down vote

I have been using this list for quite a few years when selecting partners and people to work with. It has greatly benefited me in treating this process as objectively as possibly.

  1. The person must share the core values of the business or organization.
  2. The person should not need to be “managed”.
  3. The passion to become the best at what they do.
  4. Understand the difference between a job and holding a responsibility.
  5. Would you hire the person if it were a hiring decision?
  6. Does the person have a regard for rules, regulations and personal boundaries?
  7. Professes a commitment to goals.
  8. Integrity.

Each point on this list is discussed in detail on my blog on 8 characteristics of ideal business partners.

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Thanks your list and blog post answer many of my questions! – Montana Flynn Dec 13 '09 at 18:24
At first I read it "Professes a commitment to goats." Maybe I need to get some more sleep. +1, nice list. – Jason Jan 10 '10 at 2:21
up vote 1 down vote

  1. Absolute and most important thing is a sharing the same vision of the business you are about to run together. Without that, you will stuck in the mud.

  2. If you have been working with potential partner before that would be very nice. This will give, for both of you, more confidence in each other and you will be able to set proper expectations.

  3. Something I don't know yet for sure. So far, all my potential partners came through recommendations gotten from the people I've been working with, clients and friends. Only one turn out as a promising partner, but that partnership still needs to prove it self.

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up vote 2 down vote

A partner ship is like a marriage. You need someone who complements you, and someone you can get along with well and someone you can trust, since you don't want to end up getting a divorce and having a custody battle over the child (aka business).

A founders agreement is essential. Unlike a prenuptial agreement, which might indicate a lack of trust or love, a partnership is a business, and therefore should always include the founders agreement.

Where do you find a partner? Start by talking with friends, and see if they know people that might fit what you are looking for. Also look into conventions and around business schools in entrepreneurship courses (since people that go to these courses usually look to start a business).

Good luck!

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While it's nice to have someone who compliments you, it's better to have someone who complements you. :) I'd fix the typo, but I don't have edit privs. – Joe Dec 12 '09 at 14:49
up vote 1 down vote

Adding a business partner has been extremely beneficial for my business.We barely knew one another prior to partnering. But from the first few meetings, we gelled. The previous comments are correct. My biggest barrier in choosing a partner was finding someone who had the same work ethic, values, and drive as me. I consider myself fortunate.

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up vote 1 down vote

I totally agree with RonGa. There is a nice essay from Paul Graham about this.

And you know what they say: don't do business with family or with friends. Finding a partner is hard cause it takes a serious amount of commitment from him/her as it takes from you.

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