What's a Business Partner, Its Goals & How to Find It
While working with people you know seems good, failure to do so can damage mutual relationships.
Therefore, it is important for you to know in advance what a business partner is and the information surrounding it on how to find a trustworthy business partner to run a joint business. Let's see!
What is a Business Partner?
A business partner is a partner with whom you are associated to run a business or achieve commercial goals in accordance with a mutual agreement.
Activities such as managing financial flows, managing human resources, and preparing organizational infrastructure can be carried out by business partners.
Business partner relationships are mutually beneficial. In accordance with his intention to achieve mutual commercial goals, usually a long and longer period of time is another characteristic of the following relationship.
Purpose & Functions of Business Partners
Business partners are activities that have their respective goals and functions. Here are some of them:
1. Establish social relations
One of the goals of business partners is to establish relationships with other companies or entities as co-workers.
The following function does not emphasize only commercial targets but can also focus on the social impact this relationship has.
For example, a company engages local organizations in the production process while increasing its welfare.
2. Building a company
Having a business partner is a very profitable thing. Especially if you are in the early stages or building a company.
One of the goals of having co-workers is to assist in the organization's operations.
If you find a trusted partner, achieving common business goals will feel easier and lighter.
3. Boost the economy
The most common purpose in partnering is to improve the economic status of a company.
A well-established working relationship wil make it easier for the organization to achieve its commercial goals.
In the practice of running a business partners is not enough. You need perseverance and experience to achieve business goals.
But at least the presence of other parties can help to achieve the company's targets.
Type of Business Partner
Business partners also have various types. You can choose it according to your business needs. Here are some of them.
1. Limited partnership
In the following types, the business has one or more business partners with limited liability. Generally, this limitation corresponds to the funds that have been invested by the partner.
Therefore, the role of the partner organization is more of a passive investor and does not have the authority to run the company's operations.
2. General partnership
A general partnership is a business partner who assists in carrying out business activities on a daily basis.
Therefore, this party also has responsibilities before the law and also as the owner of the debt.
3. Limited liability partnership
The last type of business partner is a limited liability partnership. Here there is a mixture of partners who have the authority to run the company's operations and also some partner as passive investors.
Example of Business Partners
Quoted from Article 106 of Government Regulation Number 7 of 2021 concerning Ease, Protection, and Empowerment of Cooperatives and MSMEs, there are 10 example of business partners as follows.
- Distribution and agency
- General trading
- Profit sharing
- Supply chain
- Joint venture
- Operational cooperation
How to Find a Trustworthy Business Partner
Trustworthy coworkers are every entrepreneur's dream. Here are some ways to find a reliable business partner.
1. Conformity in vision, mission, & passion
The first tip on how to find a business partner is a common view of the vision, mission and interests and talents in the specific business that you are involved in.
For example, you are building a property business. Of course, the co-worker you are looking for must have a similar risk appetiteand have an interest and ability in the world of construction.
2. Checking the track record of colleagues
The way to find other business partners is through the track record of the company and its founder.
You can check it first to ensure the performance and credibility of potential co-workers.
In this assessment process, you can select which co-workers should be selected and which are not. The history of achievement will certainly be a support.
On the other hand, a history of criminality such as corruption and fraud can reduce the credibility of the company as a potential partner.
3. Ensure that the financial condition of business partner is maintained
The next way to find business partners is to check the financial health of potential business partners.
The reason is, you will work together and share the results in accordance with the agreed portion.
Financial condition is a benchmark because if it is bad and in debt, it can have an impact on the sustainability of your business.
4. Have distinctive skills to complement each other
The point is to have skills that are different from your company.
As an illustration, organization A is very good at managing the operational and technical aspects of the production process of A1's goods. Meanwhile, business B has the ability and history of marketing similar products to A1.
Company A is in need of marketing assistance for its products. Therefore, organization B is an example of an ideal business partner.
5. Have clarity in communication & coordination
Last but not least, the way to find a business partner is to ensure that communication lines and smooth coordination are the determinants of whether a business partner can be trusted.
The changing economic conditions as well as the number of company activities require dexterity along with skills in conveying information.
Therefore, make sure in advance that each business partner has an agreement on communication tools and an agreement to be responsive and open to incoming information in order to achieve mutual commercial goals.
Thus a brief information about what a business partner is and its various benefits for an organization.