Criteria for business partners

Over the years we’ve been bless with various types of opportunities both challenging and beneficial. What can be said for startups from the “University of Hard Knocks” is that sometimes, when we are in survival mode, we make stupid mistakes.

These are my tips for engaging with potential partners, whether potential business partners or co-founders or investors, it is useful to:

  • engage in a due diligence sooner than later to save time when term sheets or terms of engagement is presented.
  • it should include but not be limited to:
    • business credit checks
    • consumer credit checks
    • online presence on business and the founders
    • online search for media on business and the founders
    • social media search on business
    • social media search on individuals
    • ask around, reputations are easy to gauge
    • request audit reports and financials on business and persons involved
  • trust your gut
    • sometimes something doesn’t sit well, rather than signing your life away, listen to your gut
  • listen to mentors
  • ask for guidance/assistance with negotiation if that is not your strong suit
  • NEVER EVER EVER EVER assume that the person you are “courting” knows more than you. Bullshitters are good at bullshitting their way through life.
  • get everything in writing

I’ll think of a few more and add them soon.#headsup