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MenuHow to find a great partner?
I am a start-up and I am looking for a great partner who can join me to do my online business.
Answers
By connecting with people, talking to them, building momentum, and investing enough time to explore goodness of fit. Don't be in haste to onboard one as you would encounter too many "Yes-Sir" and "Me-Too" kind of guys. But, in a long run it's pragmatic thinking and synchronization of vision that matters. Otherwise, either you or your partner will end up sitting back home,trying to establish everything around cocooned comfort of home than in right market.
Use professional social platforms like Clarity etc to scout for right people. Otherwise, advises are always free!!
Finding a co-founder is almost like finding The One, but as Anna from Frozen learnt, you don't marry someone you just met. You need a relationship, a history together or even some mutual friends.
Like in dating, prince(s) charming doesn't have to answer a "list of criteria" in order to be a goof match, but he or she must have complementary sides in his or her skills (and preferably personality as well) or there is a small chance to have a synergy in you two building a company together.
Now that you know all this, start by looking at your friends, and at your friends friends. Can any of them be the right fit? If not, there are a lot of Meetups and other events that declare that they are co-founders "matching events". look for them and start dating. It is not idle but can be successful.
another way, that in my opinion is more risky, is post am ad on LinkedIn and in the right groups on Facebook, you will find great people there, but you will have to work harder on building your relationship, as personal relationship between the partners is not only very important, it's vital.
Good luck
It's not easy. But first, ask yourself why you need a partner. In most cases you don't "need" one. If you need help with your start-up, find a mentor. You can often just pay the mentor per hour or give them some share in your business if you are short on funds. This approach is usually better than finding a partner. Partnerships are typically formed among friends, colleagues, etc. To me, it seems like you just need some general help/guidance and not a partner.
Feel free to contact me and provide some information about your start-up. Depending on what you are doing, I may be able to help you.
Finding a great partner in business i much like finding a great partner in life. It takes time for both of you to know and understand each other. Rushing in because it's the thing to do is a recipe for disaster. Make sure you have the similar world view, values and vision for the future. Working on projects together is a great way to "date" - get to know a prospective business partner. I'd recommend it as part of the due diligence for anyone looking to form a legal partnership. As one entrepreneur shared with me "I've been through a divorce and a break up with a business partner. The divorce was easier".
If you are really lucky, your partner will also have a family that taught him or her how to be that way. Having in-laws who treat you like a member of the family will make your life much nicer. Make sure the person you are seeing does not smoke, even if you do. If you cannot talk to your partner or cry on his or her shoulder, it's not going to be a good match. If you are a tactile person, you need to be with someone who shares that desire. A sense of humor can help you overcome many of life's obstacles. There are no guarantees in life. Picking the right person for the right reasons at the right time is an art form.
You can read more here: https://www.psychologytoday.com/intl/blog/emotional-fitness/201110/10-tips-help-you-pick-good-partner
Besides if you do have any questions give me a call: https://clarity.fm/joy-brotonath
Related Questions
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If a new partner is going to buy into our business, should he give us the money as shareholders or should he invest the money into the business?
Yes, it depends on what the goal is. If the company needs the money to grow, for example, then the company would issue new shares and the money would go into the company. Your ownership would be diluted but you'd own a smaller piece of a more valuable company. You also need to consider what the investor thinks is going on. Does he believe that he's 'buying in' to your company so you can 'cash out' in part. Or does he believe he's helping to fuel growth? Watch this video I made on this topic a few months ago.. https://youtu.be/1EjKjSAd1F8 If you'd like to discuss your specific situation, just arrange a call. Thanks David C BarnettDC
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What are my risks in entering a partnership with 50% voting shares, but only 25% equity overall? How can I protect my interests in this scenario?
The first matter for you to conclude is to agree the terms of a shareholder agreement between the two founders. This shareholders agreement should govern the management of all significant governance matters. Without this you will subject to the constitution documents of the company and local company company law. This is a standard type of agreement that any decent corporate lawyer will be able to advise you on. As the voting shares are held equally, then no major changes will be able to be made without both founders agreeing to the changes. The non-voting shares (assuming all other terms are the same) will have equal rights to financial returns (dividends and liquidation rights), but will not be able to participate in voting issues. In simple terms, you will have an equal say in the running of the company with your co-founder, but will receive 25% of the returns, while they receive 75%.NH
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What is the right equity percentage for a potential technical partner?
You should always give someone what they deserve. Never more and never less. Most people don't know how to do this so they guess. They try to predict the future or they look for rules of thumb or they try other ways of guessing. Kind of like you are doing now. The best way to determine this is to consider one person's risk relative to others. When someone contributes to a startup company and doesn't get paid they are accepting risk. The value of that risk is equal to the fair market value of the contribution they made. For instance, if you could earn $100,000 a year doing whatever it is that you do and you do it for a startup without getting paid you are, in effect, risking $100,000 a year. Taking risk in a startup company is essentially betting on the future outcome of the startup. If you and I bet $10 on the same hand of Blackjack we are each betting the same amount and, therefore, each deserve exactly half the winnings (if any). So, the right way to split equity in a startup company is to keep track of what's been contributed, then perform this simple formula: Individual Ownership (%) = Individual Risk/Cumulative Risk The model changes over time as more contributions are made. Each day a person contribute their stake would change. This means that at any given time, no matter what changes, who joins or who leaves. Everyone always has exactly the ownership they deserve to have. Unlike traditional models that require us to predict the future, the relative risk model is based on easily observable values in the market. Everything has a fair market value. So, the answer to your question is simple. Add up the risk he has taken and divided it by all the risk taken by everyone (including you). Each person's share can be calculated this way and the total will always equal 100%. On day one, before he's done anything, his ownership will be 0%. As it should be. Over time, as he risks, his % will change based on relative risk. This is a perfect, unambiguous formula. Every other equity model lays the foundation for disputes later on. Only a relative risk model will give you the fair answer. I've written a book on this topic, called Slicing Pie, you may have a copy if you contact me through Clarity.fm or SlicingPie.com.MM
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How do I setup a strategic partnership agreement without having to do a rev/profit share deal?
If you are really investing in a strategic partner (one that will provide mutual benefit in the end, either in terms of revenues, access to financing or other resources) then revenue sharing isn't absolutely necessary. In the partnerships I help to form, they are often around shared value (http://www.fsg.org/OurApproach/WhatisSharedValue.aspx) which means shared revenue isn't the absolute aim. What is the aim, however, is sharing information, knowledge, technical assistance, operational help, etc) and build a lasting framework for engagement together into the future that will benefit both parties. I am happy to help you negotiate these types of partnerships (it's what I do!) so feel free to get in touch.JS
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Finding a co-founder for a non-coder/developer isn't easy. At all. How can I find people interested in joining me in my new project?
What city are you in? Are you talking about your product or do you keep it secret? Finding a team is one of the most difficult parts. Make sure you ask friends of friends if they are interested. People often forget to tap their network to find talent. There are a lot of events that help find startup co-founders. Cofounders lab does a meetup group, you might want to check that out. Hope this helps.CZ
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