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best practices: Four Tips on Finding Your Ideal Business Partner

best practices

Four Tips on Finding Your Ideal Business Partner

March 30, 2006

ASK MANY MARRIED COUPLES about how they met, and you'll likely hear stories of chance circumstance — or maybe of destiny. Talk to entrepreneurs about how they found the perfect business partner, and you're likely to hear the same sort of thing.

Take, for instance, Brent Ridge, a physician specializing in geriatric medicine, whose dreams to open a start-up made him enroll in a part-time MBA program at New York University. "I was sitting in class one day, and this person sat down and saw my briefcase with my hospital ID," Ridge recalls. The fellow student was Jonathan Steiman, who was taking the investment-banking class for his master's in business journalism. "He had just accompanied his grandfather to purchase a hearing aid," Ridge says. "We started talking about the process, and how, emotionally, it was a terrible experience."

Inspiration struck, and the two decided to marshal Ridge's medical expertise and Steiman's financial skills into a plan for "Auricle," a high-end retail store that targets baby boomers in need of hearing aids. The key is to make the shopping experience be luxurious, not shameful. The two won $20,000 in seed money through a business-plan contest and plan to open their first store in the New York area in the next year.

But how did they manage to find each other — two people with a good rapport, shared vision and complementary skills? "I think all of it has to do, a little bit, with chance," Ridge admits.

Indeed, the process of finding a business soul mate is often inexplicable. After all, "there's no Friendster equivalent for business partners," says Richard Stim, author of "Whoops! I'm in Business," a guide for people whose hobbies or passion turned into businesses. A business partnership is often described as a marriage of sorts — with the extra risk of one's livelihood being at stake if the partnership fails. That's why many entrepreneurs turn to trusted family members — and frequently, spouses — for help in running the enterprise. For those who want to look elsewhere, the process may be tricky, and vexing. "It's like blind dates, only you've got to be careful because it's heavier," Stim says.

For those who are impatient waiting for fate to intervene, here are some tips to speed along the process:

Strategize
Think of yourself as a recruiter, looking to fill a job. Figure out exactly what you need in a partner — is it someone who can manage the books, while you remain the creative genius? Is it someone who understands distribution channels, while you oversee manufacturing abilities? "The most promising entrepreneurs we work with understand their own weaknesses," says Sarah Chiles, director of programs for NYU's Berkley Center for Entrepreneurial Studies. "They are looking for people who are able to fill the gaps in their own skill set."

Put the job description in writing
Detailing what you seek in a partner serves many purposes. Not only does it force you to pinpoint the qualities you want in a business mate, but it also helps you sift through interested parties who don't meet the criteria. A written job description also makes it easier to "explain to your sister whose husband has been unemployed for four years that he doesn't fit the bill," says Laura S. Hill, a career coach who founded the firm Careers In Motion in New York. The description can also be emailed to interested parties and your network of friends, family and business contacts. That way, "people will know who to refer to you," she says.

Pound the pavement
Not only do you email the job description to everyone and anyone you know, but check with alumni associations and industry groups who might be able to place the posting on listservs or job boards. Explain your needs to counselors at regional SBA Small Business Development Centers and nonprofit SCORE offices. Attend networking events, such as those hosted by business schools, which often are open to business professionals as well as alums. MBA programs at places like Babson College, Stanford University and University of Pennsylvania offer a specialty in entrepreneurial studies, increasing your chances of finding another like-minded individual. (NYU's Berkley Center, for instance, hosts a "Teammate Hunt" each fall, where attendees with business ideas are matched with other attendees with skill sets, and vice versa). Minority and female entrepreneurs may want to check within their own business community. The National Association of Women Business Owners, for instance, hosts an annual conference each year attended by about 800 female owners, some of whom are "serial entrepreneurs" looking for partners for new ventures, says Erin Fuller, NAWBO's executive director.

Take it slow
Keep in mind, once you've found a potential partner, the process of cementing your relationship — much like in romance — can't be hurried along. "You're not going to start today and have a business next week with a partner," says Denise Brewer, co-owner of American Document Imaging LLC in Tulsa, Okla.

Brewer met her business partner, Monica Griffin, a few years back when their children attended school together. The two struck up a friendship and became running buddies. "She was in oil and gas, and I was in TV — completely opposite ends of the spectrum," says Brewer, a former news anchor. Jogging a few times a week, they'd talk about how they both wanted more family-friendly careers. "We'd say — wouldn't it be great if we could still take care of the kids, yet feel like we were being successful, from a business sense?" In 2004, the two opened a document-imaging center, combining Griffin's business finesse with Brewer's communications and marketing abilities. The office has a special room where their kids can play or do homework after school. The company is growing, with eight staff members and about 40 clients, she says.

The partnership, rooted in a friendship, was years in the making, Brewer stresses. After they came up the idea, the two spent months researching and polishing their business plan. She advises entrepreneurs to spend time getting to know their partner before diving in. "You can't go into anything blind," she says. "This takes time, and no one can rush it."