Talk to any lawyer about business partnerships and they’ll probably say one thing: “Don’t do it.”
Too many partnerships fall apart, not from bad intentions but from mismatched expectations, poor communication, or simply picking the wrong person.
But when done right, a business partnership can be one of the most powerful ways to grow your business, share the load, and multiply your success. So, how do you find the right business partner?
Let’s explore the five key principles I’ve learned over 25 years in business and accounting—these will help you build a more fairytale partnership than a horror story.
1. Don’t Pick Someone Just Like You
Choosing someone who thinks like you, talks like you, and shares your passions is tempting. But what’s the point if your business partner is just another version of you?
The most successful partnerships happen when each person brings something different—time, knowledge, or money.
A great partnership is like a recipe: each ingredient adds something unique. Too much of the same ingredient? It flops.
Ask yourself:
- What am I good at?
- What am I missing?
- What does this person bring that I don’t?
This isn’t about finding your best mate. It’s about building a powerhouse team with complementary strengths.
2. Set Clear Expectations Before You Spend a Dollar
This is where most partnerships go wrong. You dive in, excited, hopeful, and assume you’re on the same page. But assumptions in business are dangerous.
Before you spend a cent, get together and map out:
- What each of you is responsible for
- What your time commitment looks like
- What the end goal is (and how long you’re giving it)
Then… WRITE IT DOWN.
Seriously, take minutes, send an email, or create a shared document. People forget things, and when money’s involved, memories get very fuzzy.
Eventually, a formal shareholders’ agreement will be drawn up with a lawyer. Do it while everything’s good, before things get tricky. Future You will thank you.
3. Make Sure It’s Fair and Equitable
Let’s talk money.
What happens if one of you works 50 hours a week in the business, and the other pops in occasionally? Is a 50/50 profit split still fair?
What if one partner is investing capital, and the other is investing sweat equity?
You need a system that fairly rewards time, effort, and investment. Otherwise, resentment will build, and nothing kills a business faster than a silent war between co-founders.
Talk openly. Agree on compensation. Decide what happens when things go right and when they don’t.
4. Get to Know Them. Really.
Here’s a hard truth:
You need to know your business partner even better than your life partner.
You’re getting financially married. You’re legally tied together. If they mess up, it affects you. So ask the hard questions:
- What’s their relationship with money?
- Do they have personal debt? Credit issues?
- Have they owned a business before? Was it successful?
- What drives them—and does that align with you?
- Who else in their life might influence them?
Don’t ignore red flags. Trust your gut. If something feels off now, it’s likely to blow up later.
5. Be Crystal Clear on the Mission and the End Goal
You need to be heading in the same direction. You need to agree on:
- The mission of the business
- What success looks like
- What you want out of this (freedom? impact? profit?)
- How long are you willing to give it?
If one partner wants a small lifestyle business and the other wants to scale and sell in five years, you will clash. Get aligned from the beginning, and you’ll save yourself a lot of pain.
Final Thoughts
Not every business needs a partner. But if you bring someone in, do it with your eyes wide open. Have the uncomfortable conversations early. Get clear on your expectations. Choose someone who challenges you, supports you, and complements your strengths.
And whatever you do, put it in writing.
If you found this helpful, check out The Profit Generator School and Coaching Program, where we dive deeper into business structure, financial frameworks, and all the essentials to set your business up for long-term success.
Let’s build businesses that serve us, not the other way around.