Someone wants you to join their business? Some Questions I (Want to) Ask

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If you’re in business long enough, people will eventually approach you and ask you to join their business…either an established business or a new business idea or concept.

Some proposals will be better than others, and what they are proposing MIGHT be good.  However, there are plenty of bogus deals out there.  There are also some bogus people, whether they intend to be that way or not.

Ultimately, I need to figure whether this is a business venture that I want to pursue (a) at all, (b) with this person, and (c) at this time.

Here are several questions that are important to me, no matter the business proposal:

1. Why are you so excited about this opportunity?

2. What do you see me bringing to the table for you?

3. What keeps you from doing all of this yourself?

4. What makes you think there is a demand for this?

5. What makes you think we can attract the attention of potential buyers?

6. Do you have enough money to make this happen?  If not, how do you plan to raise the money needed?

7. Will this generate income while we own the business, or are we looking to make money after we sell it?

8. How will the money be distributed, each income, bonuses, and after selling the company?

9. How much of the profits are we looking to reinvest in the company? How often will we revisit this?

10. What buyout plans can we put in place, for you or for me?

11. What happened the last time you partnered?

12. What do you look for in a partner?

Of course, there will be additional, more specific questions that arise as the conversation develops, but these will get you started…and possibly make you feel more comfortable knowing how to begin handling someone who makes a “once in a lifetime” proposal for you to go into business with him (or her).

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