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What signs indicate you should not trust your business partner?

| Apr 30, 2021 | Business Law

When you choose a business partner, he or she should be somebody that you trust will help you nurture your company. You have to expect him or her to commit to your business and to commit to you. Your trust in your business partner is a critical element to a successful company. 

How do you know if you can trust a partner? According to Inc., there are several red flags that you cannot ignore. 

Focuses on stealth

If you hear your partner say that the two of you should remain stealth when it comes to patents and intellectual property, do your due diligence. A partner who tries to interfere with your due diligence may have something to hide. For example, he or she may have lied to you about finances or property ownership. 

Refuses to answer questions

Sometimes, a potential partner will not refuse to answer questions outright but he or she will refuse to answer the questions directly. For example, if you were to ask a partner about customer interest, he or she will not refuse to answer. Instead, the partner might tell you that he or she has had talks with customers. He or she will never cite direct examples. 

Speaks highly of him or herself

While it helps to have a partner who has confidence, you do not want a partner who tries to win you over through his or her fame or popularity. If you have concerns, then your partner needs to address them. He or she should not use social media popularity as a way to convince you to trust your partner. 

Your partner should not manipulate details to avoid questions or negotiations.