How to choose a business partner
[Workplace Interpersonal Relationship Series]

Why work with people
In order to grow your career, you have to work with people. Many people like freedom and don't like to be restricted. I finally became my own boss. If I could run my business independently without having to look at other people’s faces, how free I would be. How happy it would be!
If it is a small business with little capital requirements and low risks, sole proprietorship is indeed a good choice. However, in today's fiercely competitive environment, it is increasingly difficult for a sole proprietorship to operate and develop. In order to expand the market and accelerate business growth, many companies must consider introducing investors or recruiting professional talents; they will ask you to give them some equity or operating rights. Therefore, you must think about what form of organization is best. suitable.
Cooperation can expand scale, share risks, and create more profits. Some people say: "If you want to go fast, go alone; if you want to go far, find someone to go with." Someone else used a metaphor to illustrate the need for cooperation: "If you have 100,000 yuan and find an investment opportunity, maybe If you make a profit of 50%, there is also a 50% chance of losing everything. Would you invest? But if this business requires an investment of one million yuan, the profit can be increased to 80%, and the chance of failure is 50%. Will you invest?" Seeing such a good return on investment, it’s hard not to be excited. However, you only have 100,000 yuan; you may find a few people to invest together to share the benefits and risks. This is why ordinary people cooperate.

▲With partners, rights and responsibilities must be determined in writing before cooperation, and an exit mechanism must also be clearly defined.
Common forms of business organization
In the United States, whether it is a for-profit enterprise or a non-profit enterprise, it is often organized in the form of a company. Common ones include the following: sole proprietorship, partnership, Limited Liability Company (LLC), S Corporation or C Corporation, which are briefly described as follows:
1. Although a partnership has a simple structure and greater operational flexibility, each partner must bear joint responsibilities and the risks are high.
2. Limited companies (LLCs) are allowed to be registered in all 50 states of the United States and the capital Washington, DC, but each state has similar legal regulations. Basically, organizing like a company separates personal and company assets to avoid being implicated in each other. In terms of tax burden, the company does not have to pay income tax. Only shareholders must declare personal income tax, which can avoid double taxation. Therefore, many sole proprietorships and partnerships also take the form of a limited liability company (LLC).
3. A joint stock company (S Corporation or C Corporation) is a company established in the form of shares. S Corporations do not have to pay income tax. Instead, shareholders incorporate dividends into their personal income and file income taxes on a consolidated basis, which has the advantage of avoiding double taxation. However, all shareholders of an S corporation must be U.S. citizens or legal foreign residents in the United States, and the total number of shareholders must not exceed 100. A C Corporation (C-type company) must file an income tax return. Shareholders will then incorporate the company's after-tax dividends into their personal income and file a consolidated income tax return. Therefore, there is the disadvantage of double taxation. However, the general investing public trusts and likes to invest in joint stock companies. In the future, it will be easier for C companies to be publicly listed (IPO) than other business organizations.

▲The ideal business partner is someone who shares the same goals with you, has a pure character, is willing to commit himself, and is congenial.
How to find the right business partner
First, pray well and ask God for guidance.
"Two are better than one, for they both work together and reap good results. If he falls, he can pick up his companion; but if he falls alone and has no one to pick him up, woe to him! ” (Ecclesiastes 4:9-10)
However, if you find the wrong partner, not only will it not help, but it will increase your troubles and cause endless troubles. Especially at the beginning of starting a business, or when the business is eager to expand, often because of the need for funds or the need for alliance and cooperation, it is easy to be overly optimistic, lack of consideration, and even be hungry and seek medical treatment in a hurry, which may lead to the wolf entering the house, resulting in future problems. There are constant disputes and endless regrets.
Therefore, when looking for a suitable business partner, you must be very cautious, and you must pray well and ask God for guidance to find the right person to cooperate with. The Lord Jesus prayed all night to choose the 12 disciples, which set an example for us. The Bible says: “Trust in the Lord with all your heart and lean not on your own understanding; in all your ways acknowledge Him, and He will direct your paths.” (Proverbs 3:5-6)
Secondly, adhere to some principles for choosing business partners.
From my personal experience and learning experience, I have summarized the following principles for ideal business partners:
1. Concord."How can two people walk together if they are not of the same mind?" (Amos 3:3) Confucius also said: "If they have different paths, they will not conspire against each other." Therefore, you must first clearly understand whether he/she approves of your differences. elephant? Do you agree with your mission statement? Do they share the same values as you?
2. Character (pure character).The character of a business partner is very important. You must carefully examine him in advance to understand his conduct, record of cooperation with others, and what is his reputation? The roads that people walk will always leave traces, which are worth tracking and checking to avoid unknown people and the consequences of raising tigers. The Bible emphasizes that when appointing deacons and overseers, the person must be blameless and have a good reputation outside the church (Acts 6:3; 1 Timothy 3:7). The Bible also says: “Do not be envious of evildoers, and do not seek to associate with them. Do not eat from those who have an evil eye (stingy), and do not associate with those who are capricious,” (Proverbs 23:6; 24:1, 21)
3. Commitment.Business partners must be determined to share joys and sorrows, have the spirit of mutual support, and have long-lasting love. Do not associate with those who are ambitious and eager for quick success; do not associate with those who are greedy for vanity and have a bad temper (Proverbs 22:24). Business partners must be people who trust each other, are committed to each other, are willing to share weal and woe, and work together for a common goal.
4. Chemistry.We often see that many people have different gifts and backgrounds, and different personalities and preferences; but both parties can be like-minded, get along well, and cooperate seamlessly. It is also common for us to see two people who are well matched, have similar education levels, and have good character and abilities, but they cannot live in harmony and cooperate together. It is a pity. They seemed to lack a certain element and it was difficult to produce a "chemical reaction", so in the end they had to part ways and go their separate ways.
After finding a partner
Just like there must be game rules before everyone can abide by them, business partners must also set clear rules. With partners, each other's rights and responsibilities must be determined before cooperation, a written contract must be in place, and an exit mechanism must be clearly defined.
After all, there is no such thing as a feast that lasts forever. Even if you are the best of friends, you may have to terminate your contract and break up due to changes in circumstances, health problems, family factors, etc. In order to get together and break up easily, it is best to agree on an exit mechanism for future breakups before cooperation to avoid unnecessary disputes and unhappiness.
The ideal business partner is very important, but it is often hard to find. You must always prepare yourself, observe carefully, and find suitable candidates; you must also be honest and upright, run your business with heart, and win the trust and respect of others. Through prayer and thanksgiving, ask God to bring the right people to join your team.
Author profile Lin Fengliang served as chairman and CEO of Payless Car Rental System Inc., one of the six largest car rental companies in the United States, from 1989 to 2013. Currently, he is a director of the Christian Messenger Association and is dedicated to the ministry of workplace missions and corporate transformation.