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What You Should Do Before You Enter A Business Partnership

Getting into a new partnership always has a risk associated with it. Most people do not deliberately lie on their CV, but there is always a tendency that people will overstate their accomplishments to make them look better. Only a few will intentionally falsify data and those are the ones that you must look out for. Even though, they may be fewer in number than those that are honest, getting involved with them with them once might be enough to run your business to the ground.

You can generally lessen the risk of getting involved with such associated bygoing about the matter with due diligence agencies. Not all offences render a candidate unsuitable. In some instances it may have been a case of being at the wrong place at the wrong time. However, some issues must be taken very seriously. If they are ignored it may affect your business adversely.

Severe legal offences

If anyone has a criminal history it may indicate that he has violent tendencies. Severe offences like murder, rape, aggravated assault and the like. These are offences that many will try to hide, so be wary of potential partners who have a criminal history. Visit http://www.cbil.com.hk/en-us/creditRating 

Not all minor legal offences, like parking tickets and getting into trouble for a brawl in school, indicate a bad personality.

Bad publicity

The public image is also important for the well-being of the enterprise. If you are trying to get into business with a person who has a tarnished history, try to put yourself in your customer’s shoes. Will they respond well to a company promoting a person who has a bad image?

Deciding not to work with a person just because he has a tarred public image is a very controversial topic and should be given some careful consideration. Not everyone who has a bad public image is a bad business partner. There may be instances where the accused or shamed party is actually innocent or when their image is irrelevant to your business. Always think about the values you are promoting before you get involved with a person with bad publicity.

Bankruptcy

Getting into a partnership with bankrupt partner or someone on the verge of bankruptcy should immediately raise red flags. Other than those who go bankrupt due to unfortunate circumstances, such people end up this way,because they mismanage funds and tend to make a lot of bad decisions. In the worst case they might try to cheat you or steal from you to make their ends meet. However, you should be able to get a good idea of the root causes for their bankruptcy by doing a simple background check. 

How they treat customers and their employees

How a person treats their inferiors is always a good indication a person’s attitude. Generally someone who cheats their customers and ill-treats their employees will exploit you when they get an opportunity. 

Essentially when you choose a partner for your business always make sure he has integrity. They are more likely to honour their agreements and less likely to get you in trouble.