Choosing a business partner is one of the most critical decisions you’ll make as a founder. Unlike hiring an employee, a business partnership is a commitment that can make or break your venture. The right one can double your impact, help you scale faster, and make the entrepreneurial journey a little less lonely. But the wrong one? It can unravel your business, your finances, and your peace of mind.

At Follow the Founder, we know that entrepreneurship isn’t a solo sport. Many founders get to a point where sharing the load just makes sense. But deciding who to share it with is one of the most critical decisions you’ll ever make. (Read more on the importance of finding the right partner in our previous post here.)

So how do you distinguish between red flags and green lights when evaluating a potential business partner?

Red Flags: What Should Make You Pause

1.Misaligned Values

“Core values are the foundation of your company, everything will be built upon this. Your mission, your culture, each hire, and every investment should be rooted in your values. If you and your partner don’t see eye-to-eye on your personal and professional core values then every moment of your career together will be a battle.”

A great partner doesn’t have to be your clone, in fact you will greatly benefit if they are not, but they do need to share your core values. If one person is driven by quick wins and the other by long-term impact, tensions will rise fast. According to “The Founder’s Dilemmas”, by Harvard Business School professor Noam Wasserman, 65% of startups fail due to co-founder conflict — not product issues, not funding — but conflict.

Jim Collins, author of “Good to Great,” emphasises that successful companies have leaders who share core values and a unified vision of what greatness looks like for their organisation.

Watch for partners who seem more interested in the lifestyle or status of being an entrepreneur rather than solving the actual problem your business addresses. These surface-level motivations rarely sustain through the difficult phases every business faces.

2. Poor Communication Patterns

If someone’s communication style is erratic, passive-aggressive, or avoidant in the early stages, it will only get worse under pressure. Business requires regular decision-making, tough conversations, and transparent feedback loops.

Avoid “Yes” people. You want a partner who can challenge you respectfully — not agree with you out of convenience.

“Once you fully step into your role there will be very few who are brave enough to do this. Find yourself a partner who will be your mirror when you need it most.”

 

3. Different Risk Tolerance & Commitment 

Partners need to be mostly aligned on how much risk they’re comfortable taking and how much they’re willing to invest in the venture. Are they quick to invest in every new tool or idea, while you prefer slow, steady growth? A conservative partner paired with someone who wants to “bet the farm” on every opportunity will create constant tension and potential financial disaster.

Equally problematic are partners who aren’t willing to put real skin in the game. This includes partners who want to maintain their day job indefinitely, refuse to invest any personal capital, or seem to view the partnership as a side project rather than a serious commitment. Someone who won’t invest their own time, money, or reputation into the venture signals they’re not fully committed to its success – and when challenges arise, they’ll be the first to walk away.

Finally, it is important that risk tolerance aligns with the role each partner will fill. Often a CEO will have a higher risk tolerance than the CFO or even COO. But you would expect your visionary CEO to see an opportunity the CFO may need more time to get on board with. It is great when each role can function as it is intended for a good balance of power. 

“Ideally, you want to operate in the same 30% of the risk tolerance spectrum and have a healthy give and take between parties and a mutually agreed process to resolve a stalemate.”

Green Lights: What Makes a Partnership Work

1.Complementary Strengths

You don’t want to be good at the same things, it’s better if you’re not. A winning partnership often pairs different zones of genius: one founder focuses on vision and brand, the other handles operations and scaling. The goal isn’t duplication – it’s synergy.

This approach is at the heart of what Dan Sullivan calls the “Who Not How” mindset. Rather than asking, “How can I do this?” successful founders ask, “Who can help me do this?” It’s a strategic shift that prioritises identifying the right people to solve problems or execute ideas, rather than defaulting to doing everything yourself. In a partnership, this means recognising each person’s strengths and intentionally dividing roles so both founders are working in their highest value zones — not burning out trying to do it all. 

“The key to this approach, like a solid marriage, is that you appreciate and support each other in your owned zone of genius and never holding one zone as more valuable than the other.”

 

2. Mutual Respect (Even in Disagreement)

Business partnerships will face disagreements—it’s inevitable. The key is finding someone who can navigate conflict constructively. Green light indicators include:

• The ability to disagree without becoming personal
• Willingness to admit mistakes and learn from them
• Emotional stability under pressure
• A collaborative approach to problem-solving

Research from Matthew O. Jackson, author of “The Human Network,” shows that successful business relationships are built on trust networks where conflicts are resolved through mutual respect rather than power struggles.

“If you are a first time founder this is especially important. This business is your baby and you are going to have a big emotional attachment to it. So it can be especially hard not to take things personal when conflict arises. So knowing that there is a shared respect can make those conversations much safer and productive.”

 

3. Shared Vision, Work Ethic & Long-Term Goals

You and your business partner won’t agree on every tiny detail of your business — but you do need to align on the big picture. A shared vision acts as your North Star for you and your employees: Why are we doing this? Who are we doing it for? What kind of impact are we trying to make? Where do you see this business in five, ten, twenty years? If your answers to those questions are miles apart, even the most well-intentioned partnership can quickly go off track.

It’s equally important to align on how you plan to get there. Work ethic plays a huge role in maintaining momentum and avoiding resentment. Unless previously agreed upon, if one partner is putting in 12-hour days and living off coffee while the other checks in once a week from the beach, tension will brew — fast. 

“My partner and I do not have the same approach to our work ethic. While she enjoys a deeply productive 12 hour day, I need to call it quits at 7 or 8 because my genius taps out earlier. Our output in value can be similar, but some would feel this wasn’t equitable. However, we knew this about each other when we decided to partner and discussed it in length. We revisit the topic often; doing check-in’s with each other and using healthy communication to discuss any feelings that may arise, which works for us.”

Remember: These aren’t one-and-done conversations. Revisit your shared vision and individual goals regularly, especially at key growth moments or pivots.

Choose People, Not Just Partners

At the end of the day, business partnerships are very similar to a marriage or personal union. Behind every business decision is a personality, a set of values, and a lived experience. Choose a partner whose integrity and energy you trust – even when things get hard. Because they will.

Take time to take inventory on your own zone of genius and blind spots honestly. What skills do you need in a partner? What type of personality complements your working style? What values are non-negotiable for you?

The foundation of your business depends on getting this decision right. By recognising red flags early and identifying true green lights, you’ll set yourself up for a partnership that not only survives but thrives.

“The most frequently asked question I get from my fellow founders who are just starting off is, if I think they should take on a partner. My first response is always “no.” I am acutely aware that I am one of the lucky few who have found a partner that checks most if not all of the boxes outlined in this article. I am super grateful for this partnership but it has not always been a smooth path and we both put an incredible amount of work into maintaining a positive and productive partnership. Which is necessary, because neither of us has the power to make any big decision alone, we share this company for better and worse.”

 

At Follow the Founder, we aim to foster a community of growth and support and establish a platform to share the diverse journeys of business owners! We want to hear from you!