Monday, August 13, 2007

For better or for worse, for richer, for poorer...

Marriage isn't the only kind of lasting relationship that consenting adults enter into these days. Joint ventures, equity capital investments, partnerships - business people are a sociable lot, and our optimism for the benefits to be gained from new commercial relationships seems limitless.

But although with marriage we may sacrifice common sense on the altar of love and instant attraction, in business this is rarely the route to riches. Imagine you were talking to your own children about their potential choice of life partner. What would you ask?

Are their intentions honourable? What do they bring to the relationship? Do their strengths balance your weaknesses, and vice-versa? Do you share the same goals? Do you have enough shared history and culture to be able to communicate effectively, while maintaining enough sense of difference to appreciate each other's contributions? Do you really trust them?

Of course it's always easier to give advice than to take it - but if you're considering entering into a new business partnership of some kind, run yourself through those same questions you'd ask your kids. And - the really scary bit - be prepared to act on your answers. Because there's more to due diligence than numbers.