Together Forever? How to Choose the Right Business Partner
It's like a marriage, for your brains.
Photo: Smith House Photo
It’s said that two heads are better than one. Albeit usually true, sometimes it depends on which two heads. Having the right partner is the foundation for a successful business. However, finding that partner may be the hardest part of starting your business.
There’s no better teacher than time and personal experience. There are, however, certain lessons we can learn from others who have lived through similar experiences. And so I offer the following.
Have Common Goals
In the most literal sense, this means you should both understand the goals of the business and what milestones the entity is trying to reach and at what points. On a deeper level, it is important to understand the bigger picture behind reaching those goals and what expectations each partner has for the future.
One partner may want fortune while the other wants fame, one may want to help the world, while the other wants notoriety. While having goals that are aligned makes it easier, it is also acceptable to have different goals so long as they complement each other. For example say one partner is not interested in the money only in helping the community, while the other feels that making a fortune is the ultimate goal, in making certain decisions regarding the direction of the business: prices, events to attend, clientele to cater to, and so forth, this may cause an issue.
This shouldn’t be a deal-breaker, however, if your goals are not aligned then the business itself cannot achieve those goals simultaneously. This should be a conversation prior to the commencement of the business.
Have Respect for One Another
Respect is not only fundamental for how you treat each other but also for the success of your business. You should respect the person as a human and also as a professional.
Respect achieves three main things: First, it makes your working environment pleasant and efficient. Next, if you truly respect your partner you likely also trust him or her. Lastly, your clients will trust and respect them as well.
The day you lose respect for your partner, the partnership and likely the business, will crumble. The respect should be mutual; your partner should appreciate what you bring to the team as well. Having mutual respect will go a long way when days get tough.
“For better or worse partnerships are tested in the real world in ways that no amount of preparation can guarantee survival.”
Find Someone Who Complements Your Strengths and Weaknesses
More often than not finding a partner seems like it’s about the other person. However, the best way to find the perfect match is to do some introspection. Analyzing your strengths is usually the easier of the two tasks, and while important to know and value what you contribute to the team, it is equally, if not more important to know your weaknesses.
Finding someone who not only complements your weaknesses with their strengths but also knows how to properly handle your shortcomings is fundamental to a long-term partnership. Recognize your flaws and appreciate someone who can handle them.
Know What You Value Most
Some value charisma, others honesty, and others willingness to take risks. Whatever, qualities you feel are going to contribute most to the success of your business and achieving your goals those are the qualities you should find in your partner. While ideally we find a partner that has it all, it’s slightly unrealistic, and so having certain priorities when making a decision can facilitate that process.
Personality Matters
Yes, having an attractive, funny, and witty partner is a dream, however, this isn’t about finding a date. It’s about finding the perfect complement to boost your chances at success. And so in general, yes, you should enjoy their company. However, attributes of their personality regarding how they solve problems, how they deal with a crisis, what makes them happy or satisfied, and their attitude towards different situations is what matters when choosing your partner.
While these tips should be used as a guide or thoughts to keep in mind, there truly is no way to ensure that a partnership will succeed. For better or worse partnerships are tested in the real world in ways that no amount of preparation can guarantee survival. But if you’re lucky enough to find that perfect partner, your business is sure to reap the benefits.
“Recognize your flaws and appreciate someone who can handle them.”
—Brenda Schamy, DiSchino & Schamy, PLLC
About the author: Brenda Schamy has a multi-faceted background in criminal defense, immigration, corporate counsel, and entertainment law. Due to her extensive entrepreneurial experience, Brenda is particularly skilled in business management, taking on the role of a forward-thinker who actively anticipates the needs, concerns, and opportunities of our corporate clients. Brenda excels at looking beyond the legal scope of business and works closely with our clients to actualize their goals.
Prior to founding Erickson & Schamy (now DiSchino & Schamy, PLLC), Brenda was a Miami Dade Public Defender. With over sixty trials taken to verdict, she is especially comfortable in a courtroom and is always ready to fight for her clients’ interests. Throughout her legal career, Brenda has also been heavily exposed to immigration, music, and the entertainment industry.
This story was originally published on April 8, 2019, and has since been updated.
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ITK: Tips for Co-Founder Success
Finding your ideal mate in business.
Many of us have a vision of launching a business with co-founder who is the perfect compliment to our right brain or left-brain selves. Strong creatives tend to seek business strength and vice versa, but actually finding the perfect fit can be more difficult than we like. This is largely because we 1. Travel in circles that tend to be more like us 2. Don’t understand our own personalities, weaknesses and core competencies 3. Are eager to find someone that when we do we say “YES” too quickly. There is a formula to finding the right partner and setting yourself up for success. Lets dive in.
YOUR INNER GAME
Your capacity to understand your traits as a leader is essential. Are you passive aggressive? Can you hire people well, but struggle with firing? Do you think you are always right? Maybe you have self-worth issues. Or, like me, maybe you are a work-a-holic and treat your business like it’s your first-born. No matter what your unique personality type, it's critical to understand how you work and to be honest about it. Launching a business is not the time to work through your personal baggage, but you are the center of your business so these things do come up. You need to square away personal obstructions and work through anything that might keep you from performing at your optimum. I suggest making a list of how you like to work, what types of personalities you have worked well with in the past, and what might someone else need to know about you to know if you are a good fit for them. Do you like to do things last minute but never miss a deadline? Your potential co-founder will need to know not to worry about your commitment.
"Launching a business is not the time to work through your personal baggage."
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WHAT YOU BRING TO THE TABLE
Aside from bringing a great idea to the conversation you need to stack up your skill sets. I always ask my clients to make lists: what are they really good at, what would they like to learn, and what is something that they would have to hire out/have zero interest in learning. If you are a creative that struggles with business matters or vice versa it's important to itemize the specifics. I work with a lot of clients that are creatives and need a business backbone, and let me tell you, you can be successful doing it on your own, but its definitely easier when you are working with someone who loves MS Excel if you hate it.
MATTERS OF MONEY
Who pays for what? With a biz partnership it's cleaner if both parties can equally split liability and expenses. Not only does this keep things feeling balanced, but there is true shared ownership. If going 50/50 is not a possibility and you are looking for a co-founder to fund the operation, you might actually be looking for an investor. In my experience having a co-founder that's really an investor can muddy decision-making processes. A co-founder should be able to bring something beyond money to the table. They should have skills and expertise that will relate directly to the day-to-day operations. If your co-founder is unable to invest as much money as you are or nothing into the business it’s critical that you stipulate in your operating agreement how your investment gets paid back over time and if/when the company dissolves. At the end of the day this is about playing fair, doing what’s right for the business and yourself.
"Having a co-founder that's really an investor can muddy decision-making processes."
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DOING BUSINESS WITH FRIENDS & LOVERS
In theory it’s a wonderful idea to start a business with a friend or romantic partner. Working with someone you know you already like and have things in common can be very rewarding, but it does require knowing yourself very well to pull this off successfully. Before launching into a business idea with someone you care about make sure to ask yourself and him or her- why now? Why would you two be the best to do this together? What complimentary traits do you have? Discuss how long you want to test the process and have a trial period together before committing to a contract. And yes, you will want a contract! Business amongst friends/lovers can still get ugly and you want to have a contract out of respect for you and them. The goal is to preserve the relationship and possibly launch an amazing business!
TINDER FOR CO-FOUNDERS
I wish there was Tinder for Co-Founders (kind of like Bumble BFF...). But as of now there are only co-founder sites that really focus on technology. Sites like CoFoundersLab, FounderDating, and Angellist are a few places to look if you are looking to start an ecommerce site, otherwise I suggest good old fashion LinkedIn and reaching out in Facebook groups, friends and family. As you would on a first date, you need to make sure to meet your potential co-founder for coffee or a drink and not just trust the phone or email. You wouldn’t marry someone without really knowing him or her right? So why would you risk your financial investment working with someone you don’t know well. (Jessica Alba jokes that partnering up with her co-founder is like an arranged marriage.) I suggest dating around. Dating around means having lots of coffees and working on small projects with someone to test out the personality styles and core competencies. Think of it as an experiment. You could sign an NDA, but really, it's not necessary unless you have a patent pending. Ideas are easy come, easy go, but execution is hard. You need a partner you can execute with that has a shared vision. Don’t expect your first couple dates will yield a co-founder! Be patient.
"Ideas are easy come, easy go, but execution is hard."
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Some people are not co-founder types and that can be as useful to know about yourself as is finding the right partner. Business owners who fly solo must take it upon themselves to find the right help to get things done. It's impossible to think you can run a business all by yourself- you simply won’t scale. You need support, someone to challenge you, and someone to fill the holes.
Syama Meagher is a retail strategist for brands and retailers. She helps entrepreneurs launch and grow fashion business through ecommerce, wholesale and brick & mortar. Syama is a former at Barneys New York, Gucci, AHAlife and Macy’s. To build your brand and create a profitable business check out www.ScalingRetail.com and email hello@scalingretail.com
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Filmmaker & Cancer Survivor Encourages Young Women to "Dream, Girl"
Komal Minhas knows dreams are meant to be lived.
Erin Bagwell (L) and Komal Minhas (R)
It was a Kickstarter trailer that lead to a cold email that lead to a life-changing partnership. “It was an instinctual ‘I have to be a part of this,’ there was no doubt in my mind,” says Komal Minhas. “I knew I had to give it my all, and what that meant for me was being totally authentic, totally honest with why the project impacted me so much and why it meant so much to me.”
“This,” is Dream, Girl. A documentary from creator Erin Bagwell that features the empowering stories of female-led companies and their founders. From fashion to tech to non-profit, it explores the challenges, successes, the conventions that still hold women back, and the dreams that pull them forward. It is framed by Bagwell’s and Minhas’ struggle to make the movie.
When Bagwell launched the project on Kickstarter, the two women were complete strangers.
Minhas was in Italy on what was supposed to be vacation. Like thousands of others she saw the trailer one night before dinner and told her partner, Mitch, “I have to be a part of this, I have to figure this out.”
“I knew I had to give it my all, and what that meant for me was being totally authentic, totally honest."
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Initially launched with a goal of $57,000, Bagwell was seven days and $18,000 away from reaching her target, when the project received a boost from author and life coach Marie Forleo. Forleo agreed to blast the Dream, Girl mission to her email list of about 300,000 people. Money started pouring in and so did the emails. One of which was from Minhas.
“Erin went from having $30,000 to $104,000 in three days,” says Minhas. “The amount of press, the people-- when you’re cutting through the noise to get to someone who is that busy, who is getting cold attention, going from zero to hundred, I knew I had to stand out.”
Before she made any “hard ask,” Minhas thought about what she could offer. She had her own company, Montreal-based KoMedia, which she founded at 23. “I knew I could invest a little bit of the money I had saved up from the year of operating my company,” she says. Beyond that she could strategically supply “camera equipment-- I had a couple of 5D cameras and I had some audio equipment.” In her first email to Bagwell she outlined every provision she could make. Drafting what she called a “have-to reply.” Minhas says she “created an opportunity for Erin to respond, making the option of saying ‘no’ incredibly difficult.”
“I didn’t want to be overbearing,” she says. “I kept it light, but it was a rich ask and also, offer.” The response was not immediate. “It took Erin three days to reply after I sent a follow-up email. It felt like ages to me because I knew this was went I meant to do.”
Three nights later the two were on a Skype call. It was midnight in Naples, the connection kept cutting in and out, but where the internet failed, the synergy between the women succeeded. “We told each other our life stories, why we were each doing what we were, and I again reiterated the offer, the strengths I knew I had and what I could bring the partnership.” Bagwell, she says, “she was right there with me."
"Throwing it down, not being afraid to ask, but also, not being a crazy person,” that’s how she got in the door. “It’s a strange line to toe,” she says, but acknowledges, “I prefer more over less. Fortunately in this situation, Erin did too.”
From a Skype call, an in-person meeting, emails in between, and Minhas landed on set a couple of weeks later.
That first $104k gave the filmmakers enough funding to make it through about 8 months. “For the first time,” Minhas says, “I didn’t take a salary. It was almost a full year before I did because we were bootstrapping.” In the summer 2015, lead by investor Joanne Wilson, who appears in the film, they did a round of Angel funding. That raised another $100k. They did one final round of friends and family to “make it through the finish line.”
Though Minhas had never raised for business, she had done work raising money for charity. For instance, while at university she spearheaded a campus fundraiser that raised over half a million dollars for the Canadian Cancer Society. “I knew how to magnetize money for a cause,” she explains, “but when it’s a business you have to include how you’re going to share long-term revenue projections, understand distribution, and we had to convince our investors that beyond the social impact mission of the film we would bring them returns, and hopefully great returns.” It was a “learning curve when we were starting to pitch.”
And then there was the big curveball. “Back in March,” says Minhas, “I was actually diagnosed with cancer. I am survivor and was diagnosed cancer free a couple of weeks ago. But when we got the news March 2nd our premiere was set for May 26th at the White House. We figured it out and did our best.”
Erin Bagwell, third from left and Komal Minhas, fourth from left at the White House screening.
They premiered the film to a private, 190-person screening for women entrepreneurs, followed by a round table discussion led by Diana Doukas, the director of the White House Business Council.
The response was overwhelming and powerful. “It took two years to create the film and we’re anticipating it will take a full two to fully maximize the distribution. We’re not only creatives, but we made a film about business and we are running a successful business.” Since launching in June in New York, Dream, Girl has had over 100 screenings in seven different countries. They are planning to scale that number to over 1000 in the next year.
Another arm of the goal is to give young women “better examples of what wealth and what wealth in business looks like,” says Minhas. “We don’t want to be Wolf of Wall Street. That’s not our jam, but it’s a no-brainer that a woman can be in power.
"We don’t want to be Wolf of Wall Street. That’s not our jam, but it’s a no-brainer that a woman can be in power."
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Minhas and Bagwell are also turning the forty plus hours of unused footage into a web series called, Your Moment of Ambition, which they are looking to launch in 2017. The series will be 20 episodes at about 2 minutes each. "There are so many stories that couldn't make it into a film,” says Minhas. “Those of sexual harassment to a professor at Wharton talking about why it’s also a no-brainer that every man should be a feminist.”
They are not only incredibly inspired by the people they interviewed, but by what Minhas says are “the next generation of feminists like Zendaya and Rowan Blanchard. These are really woke women. They have Queen B to look up to and some of them are just thirteen, fourteen years old.”
She says “Maybe Gen Z won’t see the work and effort it took to get here,” but “there will be no barriers in this generation's mind that they can be limitless.”
Dream, big. Dream, Girl.
For more information or to host your own screening and bring Dream, Girl to your community, visit the site here.