Which business partners should I avoid?

Dear Aunty,

I am starting my second business and after learning the hard way I have decided to take in an investor/business partner. It is in the health sector. My preference is for someone in the industry who can also act as a bit of a mentor.

The problem is, it is a very bureaucratic sector. I have read a lot about what I should look for and I am wondering what business partners I should avoid?

Lou,
Canberra

Dear Lou,

The perfect business partner does not exist. But if you can find a good partner then your business is off to a flying start.

Here is my list of the top 10 partners from hell you’ll find in the health sector. And readers: please add your own experiences of business partners from hell.

Ego on the run
You know the type: always has the big ideas and then doesn’t stay around to help with the execution. This type needs a lot of reassurance, as they tend to suffer strong mood swings, usually if someone has not admired them for the past five minutes.

Last throw of the dice
This is the person who is wealthy and successful. They want one last swing of the business club and they want it to be big. Often they will take huge risks and want to grow the business very fast. They feel unassailable and that they cannot fail, so if they get in a hole they will dig themselves and the company in deeper.

The show pony
This business partner has the gift of the gab but not much else. While their networking skills are commendable, their strategic ideas are laughable and you’ll end up encouraging them to skip board meetings in order to “spread the word”.

One idea a minute
The ‘one idea a minute’ partner is usually a genius. They have a stream of fresh ideas, only half of which are brilliant – and many of those cost a limb to implement. Nevertheless they want them all to be considered seriously and will argue bitterly when told no. The problem is that they pay little attention to the detail and therefore do not know how much they cost to execute. The problem with the “one idea a minute” partner is that they get very frustrated at the “pedestrian way” you are running the company.

The shyster
This type promises to put in money at certain milestones and then after an initial investment will make up lots of excuses NOT to put in the money. They then will complain when told their equity will be diluted after a capital raising.

The greedy
This business partner thinks the business is a cash cow and would much rather take the money to fund their lifestyle than reinvest it in the business. Consequences are that they complain about the costs, want to know why your new chairs are so expensive and grizzles every year if there are no dividends.

The micromanager
This business partner is used to running a business and cannot stand someone else being in control. They like to sweat the small stuff but get very nervous with big picture vision. They insist on risk management plans and love meetings. Partners like this slow the growth of the business.

The psycho
This is the emotional neurotic who likes to manipulate, control and bully. In fact this is why they have bought into the business in the first place. They can’t get a job because they end up fired. But nor can they run a business. So instead, end up as a partner that drives everyone nuts.

Grass is greener
This business partner loves business. Usually rich, they are “buying” the excitement of a start-up. So boy, it had better deliver or they can quickly lose interest and turn their sights to the next project. The problem is that like a marriage a business can hit a boring patch and like a marriage, they can get itchy feet.

Yes Minister
There have been a stream of ministers who, once they lose their gig, invest in smaller businesses, particularly in the health sector. Not renowned for controlling budgets, they have a penchant for travel and fancy hotels on so called “research trips”. They are about as useful as a politician at a party. Avoid!

Good luck, ?
Your Aunty B