How to Test Whether or not to Take on a Partner There are countless examples of highly successful business partnerships. Steve Jobs and Steve Wozniak created Apple Computer. Bill Gates and Paul Allen started Microsoft. Sergey Brin and Larry Page launched Google.
All-star teams like these might convince you that finding a partner is a critical element in starting a business, but I'm here to tell you it isn't. More entrepreneurs wind up taking on bad partners for the wrong reasons than good partners for the right ones.
We all know that creating a company is tough, and finding anyone that is crazy enough to back your idea is hard enough. But how do you know if that person you're about to be married to is truly the right fit? Can you even afford to be selective?
Before you even consider taking on a partner, you need to ask yourself a few hard questions about whether or not the person sitting across the table from you is a really going to be there in good times and in bad.
Contributing Real SkillsOften entrepreneurs will look for partners that have skills or experience that they don't. You may look for someone with strong technical skills, experience with finance, or a knack for sales. It's reasonable to believe that someone who brings new skills to the table would be a natural fit.
But just because someone has a capability that you lack doesn't mean they're particularly great at it. I may be able to change the oil in my car while you don't even know how to pop the hood.
Still, that doesn't make me a mechanic.
If you're considering a partner just because they have complementary skills, you want to find someone who is exceptional at those skills, not mediocre. You can always find people that have basic skills and can work inexpensively. A partner is someone that is a true guru.
Commitment and StaminaEven if someone passes the skills test, you still need someone that will match your commitment to the startup. You're going to be spending a ridiculous amount of time holed up in an office giving up friends, family and anything that resembles a social life. Is your partner going to do that?
For most, the answer would be “no.” Very few people are cut out to withstand the non-stop anxiety and pressure of a startup company. Anyone can get excited for three months. It’s the person that will stick by you for three years of agony that (or more) that really qualifies as a partner.
Look at your potential partner's situation. Can they afford to forgo pay for a year? Can they afford to give up everything outside of work for as long as it takes to be successful? If the answer is “no” then you’re going to find out in the long run that you have a buddy, not a partner.
ONLY Partner with an Architect who has Social Capital
Even if your potential partner looks like they are contributing real expertise and has a genuine commitment, the question then becomes “will they always be this valuable?”
Let's say we need to build a house. Before we lay a brick or pick up a hammer, we need an architect. We need someone that has serious expertise and knowledge of how to get this project started. For the first few months we won’t be doing much work at all – the plans will all be in the architect’s hands.
So the architect has a critical role in the creation of our new house. Yet after a few months, once the plans have been drawn up and we get to building, the architect has minimal impact. While his contribution was pretty important to get started, his long term contribution doesn't add up to much.
PAY WELL for EXPERTISETaking the architect on as a partner
just because he is real valuable in the formative stages would have been a mistake. Startups do this all the time with attorneys, web developers, graphic designers and other professionals that are wildly helpful in getting started, but don’t offer as much long-term value. (So it is better to pay them to exicute.)
Before you consider taking the architect on as a partner for their great expertise, ask yourself “what’s this guy going to do a year from now?” A good partner doesn't lose value after the launch of your company.
Good Partners Never Fade
The reason great partnerships work so well is because they stand the test of time. Both parties are equally committed, capable and useful throughout the life of the partnership. As soon as one partner loses steam and begins to fade, problems are soon to follow.
If you're even the slightest bit unsure about taking on a partner for any reason, wait. Any time you may lose in getting your idea off the ground is worth every moment if you can avoid taking on a partner that doesn't deliver their end of the bargain.
Wil Schroter - Go BIG Network
Labels: Partnering
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