- Here are some signs of bad business partnership or partner
Not all partnerships are made to succeed. If we talk about statistic of business partnership then 80 percent of partnership ultimately fail. Even after a lot of research and thinking, you might end up with a partner who is just not right for you or your business.
But there are signs; if you look carefully, you can see them. In this article, we will be sharing some helpful tips to identify the signs of a bad partner or partnership. By following these, you can successfully manage to spot a bad partner before going into the business with him.
Also Read: Different Benefits and Risks of Partnerships
Here are some signs of bad business partnership or partner
1. Unwillingness to sign a partnership agreement
Like I said, the signs will be there. A partnership agreement is one of the most important things for business partnerships. It mentions and provides solutions for the best and worst case scenarios of the partnership. If a partner is refusing or showing an unwillingness to sign the agreement, it possibly indicates that they are not as dedicated to the partnership as you or other partners. The reason might be anything, such as no confidence in the business, lack of commitment, different goals, etc. This should be a wake-up call for you.
2. Unbalanced skills and duties
A perfect partnership is the one where the weaknesses of a partner are compensated by the strengths of the other. This is what you should be looking for when you search for a business partner. Even if you do not manage to find the exact person, your partner must be someone who is willing to take the responsibilities you are not comfortable with and vice-versa. Make sure to discuss the same when drafting the ‘roles and responsibilities’ in the clause of partnership deed. If you think that the other person, with his abilities and skills, can only become a burden for you, then it is a sign that you should probably step back and rethink.
3. Too good to be true
If your potential partner, his skills and interest sound too good to be true, it probably is. If someone approaches you saying things like it was his dream to always become a partner in this firm, and this is the best company in the market, and so, what would you think? There is a good chance that he might be true and he could actually be interested in the company or possess the skills he claims. But why take the risk? If it sounds too good to be true, you should consider that as a sign and try making a better decision for your sake and your business’s.
A business relationship, like a marriage, needs compatibility in values and thoughts of the partners. If you and your partner cannot think alike and share common goals, then the partnership is doomed from the very beginning. The partners in a business must agree not only on the goals but also on the ways to achieve those goals. If they are not on the same page from the start, they will probably never be, and it would be too difficult to manage the business relationship.
5. Different financial goals
If one partner is in the business only for making money, chances are that they will eventually get bored of the business, especially if it takes too much time to generate substantial income from the business. Money is an important thing, but it should not be the most important thing for the business. Even in the short-term, it might become too difficult to make a wise business decision when all one partner is thinking about is money. If you find any such sign, you should probably move out of the deal.
6. Ulterior motives
It is normal for each person to have his own goals and targets. Even your potential partners might also have some goals in mind that he wants to achieve with this partnership. This is not necessarily a bad thing. But you should make sure that their personal goals do not affect the partnership or business in any harmful way and they do not have any ulterior or ill-minded motives behind their interest in the partnership. For this, you should do a proper background check to know what else your potential partner is involved in and if he is running some other venture as well.
7. Communication problem
Healthy communication is critical to the success of a relationship. If you are not able to talk to each other properly or argument on everything, this might not get better with time. Some signs of bad communication include taking too much time to respond to your emails and calls, supplying unreliable and/or incomplete information, being dull or moody, lying or hiding the facts, etc. All these and many other signs show that the person is either not comfortable or not interested in working with you. So, you probably shouldn’t go into partnership with them.
These points will surely help you filter out the bad potential partners and ensure the success of the partnership. There are many other things like their inability to compromise, over-spending nature, a habit to argue on everything, disagreements, inability to discuss properly, reluctance to work, etc. which you can consider to identify a bad partner.