I get approached about once a month from someone wanting me to partner up in business. So far, I’ve been willing to look over their plans and give them consideration. What I’ve discovered is that most are not serious beyond a surface level, superficial interest in seriously starting a business. Usually I can tell in about 15 or 20 minutes just how deep their commitment lies. I’m certainly not being critical of this. I actually admire anyone and everyone who has some desire to enter the world of business and become entrepreneurs.
Some have wonderful skills but no business experience. Some have business experience but no skills. Some just jump from one thing to another like I did for many years. The actual fact is that any one of the above combinations can be overcome with a good plan. (not necessarily a perfect plan….just a good plan) I think the only thing that cannot be overcome is that of commitment. Or perhaps, lack of commitment.
Everyone claims to be committed but when it comes right down to it, there is typically a point where the commitment ends. It usually has to do with risk level. I’ve been there, done that myself. I am involved and have been involved in partnerships both good and bad in order to minimize risk. It’s a legitimate scenario. The problem, I’ve discovered, is when one party is looking for a partner to pick up the risk where the other’s “risk threshold” ends. (You can figure out the many situations this encompasses)
In my assessment of risk, I realize I have begun comparing everything to our real estate investing business. Whether a proposed venture is a $5,000 deal or a $2 million deal, I find myself asking, “if I were to put that money into more real estate, how would the risk compare? Then a light came on. I’m asking myself this question because I have reached a point in our real estate business where I see it as a ZERO RISK business! How ironic is that? In most cases people view real estate investing as highly risky. I’ve reached a point where I see it a no risk at all. (obviously that is precluded by the fact that the business needs to be managed and operated competently) But still, no real risk in our estimation.
Here’s my conclusion to those looking for a partner in their business ideas.
- Besides a good idea, you better have a good plan of execution.
- If you want a partner to carry risk, you better be willing to risk it all yourself first.
- If you have a “risk limit”, you probably don’t believe enough in your plan.
- Be willing to go the extra mile before expecting your partner to.
One other thing I’ve found interesting is that our track record of success is excellent. Yet, I’ve invited others to enjoy the success we experience by offering partner opportunities in many of our real estate deals with virtually no takers. At the same time, I receive offers to partner with others in businesses that are untested with no track record or are poorly planned. When I see that, I start comparing risk!