Getting a bad business partner can lead to all sorts of issues and even potential lawsuits in the future. It can run your company into the ground. It can crush what you’ve dreamed of building for your entire life.
Even so, people make mistakes all the time when it comes to picking business partners. They overlook red flags or get too excited about the business idea to slow down and really think about how they’re putting it all together. How can you avoid these issues and spot a bad business partner from the beginning?
One thing to watch out for is someone who is so excited and puts in so much effort that it covers up for the fact that they’re not an expert and they have no idea what they’re doing. Excitement and energy and effort are all good things, but not if they pretend to know things they don’t. They could make crucial mistakes in the future.
Another thing to keep an eye on is the balance of work between the two of you. If it doesn’t seem very fair and you’re doing more than they are, even at the beginning, that’s probably only going to get worse over time.
Finally, as with any business deal, watch out for something that seems so perfect that it’s “too good to be true.” That’s a huge red flag, but people often overlook it because they so desperately want it to be true. When it’s not, to wrecks the business.
If you do get involved with a bad business partner and it ends up in court, it’s time to look into all of your legal options.