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Red and green flags in business relationships

Are you about to go into business with someone that can make your dreams a reality?

Or is your potential business partner likely to turn your dream into an inescapable nightmare?

Red flags means stop and reconsider

Any of these signs should warn you against getting involved in business with someone:

  1. You've been witness to his or her poor performances in the past. Don't suffer from "Not Me Syndrome." That's what it's called when you watch someone pull dirty tricks on his or her past or current business partners but get lulled by his or her justifications into believing that you won't get treated the same terrible way.
  2. He or she has a history of lying or a lengthy list of lawsuits that he or she has been involved in -- on either side.
  3. You find some personality trait he or she has exhausting or endlessly irritating. This could be someone who is a natural nitpicker, a whiner or someone who argues just for the sake of arguing.
  4. He or she is great a finding blame -- with others. He or she is not so great, however, at accepting personal responsibility if there's even a hint of blame involved.

These are all likely to ring early warning bells in your mind or your gut -- which is instinct telling you to let this opportunity and potential partner pass.

On the other hand, there are some signals that everything is green and good to go. These traits or habits in a potential business partner are valuable commodities:

  1. He or she is capable of taking constructive criticism without being defensive.
  2. He or she is also confident enough to reject criticism after listening to it carefully and finding it invalid -- and able to articulate why he or she is rejecting it.
  3. He or she has a reasonable amount of empathy toward others (but not so much that it allows others to be manipulative).
  4. He or she can inspire trust and loyalty and knows how to give those things in return.
  5. He or she is self-aware enough to accurately assess his or her own blind spots and weak areas while also able to explain (without bragging or exaggeration) his or her strengths.

Going into business is a lot less scary if you trust your instincts. Also, keep in mind that an attorney's guidance during the formation of your business can help prevent problems later.

Source: www.forbes.com, "Start The New Year By Learning To Avoid Bad Business Relationships," Prudy Gourguechon, Contributor, Jan. 01, 2018

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