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Should you be vetting potential new business partners?

On Behalf of | Mar 22, 2023 | Business Litigation |

Yes, it is always vital to thoroughly investigate any person or company you plan to partner with in business matters. Proactive steps like this can prevent legal and operational problems involving partnerships from arising.

In the business world, anything you can do to minimize potential problems will help your company thrive. Forming a business partnership can lead to growth, but not if the partner fails to contribute or compromises business assets.

What are some indicators of a poor partner?

When you know what to look for, you may be able to avoid an unfavorable partnership without having to look deeper. During your interactions with a potential partner, watch out for red flags like these:

  • Avoids answering questions
  • Communicates poorly with others
  • Has vastly divergent business goals
  • Unwilling to spend time contributing to growth

Sometimes, a person wants to enter a business partnership for reasons that misalign with other partners. For example, some only care about obtaining a return on their investment, while others care about growth and long-term sustainability.

How can you learn more about potential partners?

Consider developing and implementing a vetting process for your business. Having a procedure in place enables you to check out potential partners now and gives you a basic blueprint for vetting business associates in the future.

Effective vetting methods include:

  • Ask them to submit a resume
  • Search their backgrounds online
  • Ask for references and check them
  • View examples of their previous work

You can also work with paid companies that perform comprehensive background checks on individuals and businesses.

Legal support is invaluable in all your Georgia business dealings, especially when entering a contract with a new partner.