When It Comes to Choosing Business Partners, Look Before You Leap

David learned this lesson all too well. He and his potential business partner, Kevin, were eager to start an animation company. They had worked together at Disney Studios a number of years ago, got along well, and when the time was right, looked to each other for the camaraderie and “brain trust” they had shared in the corporate world. So they started to discuss the possibilities of setting up shop together and began negotiating the terms of a business owners’ agreement. They were trying to work out the company’ s operations—who would be responsible for what—when Kevin decided to totally renovate his apartment. This, despite the fact that Kevin was not in corporate America drawing a salary, but an entrepreneur trying to build his business. “All my friends in corporate America were getting something new,” Kevin explained. “A new apartment, a weekend place in the country, a new car, a long vacation—I deserved something new, too.” The contractor made a real mess of the place, so Kevin had to deal with that situation. This put negotiations with David on hold for a bit. Negotiations resumed, but several weeks later, Kevin developed some kind of debilitating stomach virus.

Then, a special (and time-consuming project) dropped in Kevin’s lap, which took him to Tokyo for several months on assignment. Then, Kevin’s father suffered a terrible stroke, and Kevin flew to Wisconsin to spend time with him. David hasn’t heard from Kevin in over a year. “Thank God we didn’t actually start something,” said David. “I would have had to spend all my time chasing after Kevin and following up after him. I’m glad I took the time to try to negotiate the deal instead of rushing into it.” In other words, David looked before he leapt and, in hindsight, he didn’t like what he saw.

So what should you look at before deciding to go into business with someone else?

1. Do you really need to do this? What’s your motivation? Are you lonely working alone, or does this person really offer another skill set that you don’t have? Think creatively about whether you can get your real needs met in an employee or outsourced contractor situation … or by developing a mastermind alliance.