When starting a new business, people often approach others to get them on board as a business partner for one of many reasons. Every budding businessman knows that having a partner gives them quite a lot of benefits, such as, an increased amount of business capital, tax cuts, higher borrowing capacity and ultimately, shared knowledge that can be put into growing the business.
But, the numbers don’t lie. Statistics show that nearly 80% of business partnerships fail and the companies closed. This is because one or more partners have their own agenda going on, swindling the business capital for their own gain. Here’s how you can tell if your business partner is double-dealing.
Business partners who have shady dealings running in the background are almost always secretive about what they do. They will usually claim that they have been putting effort into meeting new investors into growing the business, however, when asked, they would fail to provide details on these investors and would seem like they are hiding a great chunk of information from you. Moreover, they would become very defensive about the topic of work and splitting profits. If your business partner exhibits such signs, it’s time to sever that partnership.
#2 Missing Funds
Another issue with con-artist business partners is that there will always be some amount of missing funds or money spent that has been vaguely accounted for. Business partners who have other dealings behind your back would most likely take funds from your business partnership in order to fund their own ventures with others. Always keep track on the profits and losses, lest these unscrupulous leeches come after the fruits of your labor and hard work.
#3 Sweet Talk
Another sign that your business partner may be taking you for a ride is that they are excellent sweet talkers. People who require something from others often shower the other person with empty praises, in hopes that they will relent to doing what they want them to do. If your business partner starts throwing praises and nice words about, when they rarely do so, chances are that they are trying to get you to fall into their plans and may be wanting to take advantage of you and your business.
#4 Avoids Conflict
Shady business partners always take the time and effort to avoid any conflict. This is because, the lesser the number of conflicts they are involved in, the less likely their underhanded dealings will be discovered. Even when you proposed new, risky ideas about growing the business, they may not be all that interested to share their thoughts with you and would be more inclined to blindly agreeing with every suggestion that you have about the shared business.
#5 Problem Solving
When presented with a problem, an active business partner will work towards a solution with you, keeping in mind the values and standards of the business. Business partners who shirk the responsibility of solving problems related to the company together, may have other ideas in mind, without you knowing. Also, their disinterest in any problems that the company is facing is a clear red flag that your business partner does not have their heart in the business.
Always keep a close eye on your business partners, especially if you have the higher share of investment. Choose your business dealings wisely and look for an honest and trustworthy person to be your partner, ideally someone that you have already known for quite a number of years. Should you suspect that your current business partner has been putting in effort in growing businesses someplace else, a simple email and phone lookup would be able to give you an idea of what is going on with your business partner.