Eight traits to look for in a business partner

The hospitality industry is notoriously fast paced and unpredictable, so having a reliable, adaptable, and trustworthy partner is important. You want someone who will work with you to build a great culture, drive profitability and ensure long term sustainability. Conversely, throwing in your lot with the wrong person can lead to conflict, poor decision-making and financial instability.  

To help you make the right decisions about who you partner with, we’ve put together this handy list of eight qualities you should look for in a business partner in your restaurant, café or bar.

 Sharing a vision is crucial when starting a hospitality business together. The ideal business partner will share your ideas about the type of experience you hope to create, whether it’s a high-end cocktail lounge, a foodie gastropub, or a family-friendly casual diner. Getting clear on your expectations around your brand, customer experience, menu, and pricing will make for a much smoother experience as you work together to start and grow your business.

So, how do you go about finding someone who shares your vision? There’s no shortcut unfortunately. Get clear on your own vision and spend time discussing your long-term aspirations with potential partners. Ask heaps of questions – where do they see the business in five to ten years? What matters more, profitability or reputation? What’s more important – great service, or great food? Have a series of brainstorming sessions and see if the stars are aligning.

Values are different from vision – your vision is where you want to get to, your values guide how you go about getting there. But sharing similar values is equally important as sharing a vision. For example, if your business partner believes in cutting corners to maximise profit, while you believe in ethical sourcing, fair wages and a quality product… you’re headed for trouble! Look for a partner whose ethics, work standards and approach to customer service align with yours.  

2. Financial stability and business acumen

Hospitality businesses typically require significant upfront investment, including fully fitting out your front and back of house areas and hiring staff before your first customers even walk through the door! Financial struggles are one of the most common reasons that restaurants, cafés and bars end up failing. Choosing a business partner who makes strong financial decisions is critical to your success – ideally they have a solid grasp on budgeting, cash flow and financial forecasting (and you should too!).  

Going beyond financial know-how, business acumen is about understanding what makes a business successful, and implementing winning strategies to keep costs low, cashflow positive, and profits high. Choose a partner who brings a good understanding of operational costs, pricing strategies and profit margins, as well as the ability to interpret financial statements.  

You can gauge a potential partner’s financial stability by discussing their personal and professional financial history. Have they successfully managed a business before? Do they have outstanding debts that could create stress or risk? Do they share your understanding of the financial investment and potential returns of your business? Be upfront about financial expectations and create a clear partnership agreement that outlines your respective investments, responsibilities and possible exit strategies.

If you’re starting a hospitality business with a partner, each of you should have direct industry experience or at minimum, a solid understanding of how hospitality businesses operate. The hospitality industry is completely different to other industries due to its fast pace, regulatory requirements and volatility.  

If either of you lacks hands-on hospitality experience, you must be willing to learn and quick to engage experienced staff or consultants who can help you make good decisions. For example, someone who has worked in the industry will understand the importance of food cost control, liquor inventory management and labour efficiency. They’ll also have firsthand knowledge of customer behaviour, peak service times, and effective marketing strategies.  

Have a look at your potential partner’s background. Have they managed a restaurant or worked in one long enough to understand how it makes money? If they lack direct hospitality experience but bring other important qualities (such as business acumen or significant funds to invest), assess their willingness to immerse themselves in learning the industry, whether through research, hands-on experience or mentorship. A strong sign of commitment is if they’re already taking courses or networking within the industry.

Anyone who’s worked in hospitality knows it takes stamina. The hours are long, especially in the first few years of running your business. A partner who isn’t willing to put in the work, or who disappears when the going gets tough, simply won’t cut it. You need a business partner who will show up consistently, roll up their sleeves to solve problems, and support your team to be their very best – especially during stressful moments.  

Reliability is another important quality to look for. Both you and your business partner should follow through on commitments, meet deadlines, and proactively tackle issues head-on. This will help you to ensure daily operations run smoothly, orders are placed on time, payroll is managed correctly, and health and safety criteria are met.  

Look at your potential partner’s past professional history. Do they have longevity in previous roles? Do they have a track record of following projects through to successful completion? You could even test this by working on a smaller project together before you dive into launching your business. Maybe you run a pop-up event, take on a catering gig or set up a stall at a food and wine festival or gourmet market.

Everyone has a unique combination of skills and relative weaknesses, so choose a partner who’s brilliant in areas where you struggle. For example, you might be a clever marketer but struggle with budget management. Your partner might be an ideas person, while you excel at taking action.  

Choosing a partner whose skills complement your own can help avoid double-up where you both prefer similar tasks and others get neglected. A business with two highly creative partners but nobody focused on logistics, will likely struggle with efficiency. Similarly, a business with two numbers-driven partners may lack the innovation and creativity to stay relevant in the volatile hospitality industry.  

Start by taking an honest assessment of your strengths and weaknesses – look at your career history and think about the moments where you most enjoyed your job and delivered great results – what were you doing? Conversely, what are the areas you’ve tended to avoid or take less interest in? Once you’ve identified your top talents, look for a business partner whose skill set fills the gaps. You could ask about their experience in managing staff, handling finances, dealing with vendors or finding efficiencies in operations. You could also test how well you work together by taking on some smaller projects before diving into launching a business together.

The world of hospitality is an unpredictable one. Supply chain issues, staff rostering issues and customer complaints are just a few of the challenges you’ll need to deal with on the fly. Both you and your business partner will need to remain calm under pressure, find creative solutions (fast) and be able to pivot whenever necessary.  

This kind of adaptability is especially important during the first year of operating your business, when unexpected expenses and operational hiccups are inevitable. Someone who can adapt to shifting circumstances without making rash decisions or stressing your team, will help keep your business on an even keel.  

Assess your business partner’s adaptability and problem-solving skills by asking questions about how they’ve handled situations in the past. Have they ever had to pivot quickly in response to market conditions? What did they do when they were short-handed on a busy shift? Taking time to understand how your partner reacts under pressure will pay off later on.

It goes without saying that trust is the foundation of every good relationship, and the same goes in business. You need to have confidence that your business partner will act ethically, be responsible when it comes to your funds, and make decisions in the best interests of your partnership and your business.  

A partner with integrity will be transparent about finances, honest in negotiations, and scrupulously fair when dealing with employees, vendors and customers. When they say they’ll do something, they always deliver.  

Does your prospective business partner have positive relationships from past business dealings? Do they have a reputation for being a good operator? Do people want to work with them again? All these are good signs that someone has integrity and can be trusted.

Clear, upfront communication is essential for a successful business partnership. You’ll be working together on everything from financial decisions to hiring and marketing to day-to-day operations. Miscommunications can lead to costly mistakes, frustration and even culminate in legal disputes.  

You and your business partner are bound to disagree from time to time, so the ability to communicate feedback directly, respectfully and effectively is important. You’ll need to listen actively to each other, respect each other’s opinions and work towards constructive solutions. Compromise and good communication are critical to minimising conflict.  

Notice how your prospective business partner handles discussions. Do they listen and ask good questions? Do they interrupt and talk over people? When you disagree over minor things, how do they react? This could be a good clue to how well they’ll handle bigger disagreements down the track.

In summary 

Finding the right business partner is just as important as having a great concept for your restaurant or bar. Taking the time to evaluate potential partners thoroughly can make the difference between a thriving business and a stressful failure. Hopefully we’ve given you some good tips to set you on the right path.