Client: Startup Entrepreneur
Industry: Assessments & Consulting
Challenge: Selecting the Right Business Partner
Background:
A startup entrepreneur was seeking a business partner to help grow her company. By chance, she met a sales manager from a competitor at the gym. He appeared to be an ideal candidate – well-educated, polished, and with relevant industry experience. Excited by the potential synergy, she shared her vision, and he quickly expressed interest in joining forces.
His background in a similar company made him seem like a perfect fit. However, the entrepreneur, committed to making informed decisions, asked him to complete her company's Role-Based Assessment, a tool distinct from traditional personality tests used by competitors.
The Assessment Results:
To the entrepreneur’s surprise, the assessment revealed concerning results: • Rigid Leadership Style – Highly inflexible in managing projects and processes. • Fear of Challenges – Secretly terrified of overcoming obstacles necessary for business growth.
- Domineering Behavior – Inclined to dominate team members, disregarding diverse viewpoints.
- Lack of Empathy and Availability – Unwilling to engage with or support others, showing favoritism in decision-making.
- Limited Vision – Narrow focus with minimal adaptability, restricting innovative thinking.
These results starkly contrasted with his confident and charismatic presentation.
Despite Red Flags:
Despite the alarming assessment, the entrepreneur proceeded with a trial partnership, acknowledging a degree of “semi-willful blindness.” To protect herself, she structured a trial partnership agreement with clearly defined terms:
- The entrepreneur retained 100% ownership initially, with the option for the entrepreneur to sell 50% within six months.
- Both parties agreed to equally share expenses during the initial trial period and contribute full-time to the company’s growth.
- In case of dissolution, the entrepreneur would retain ownership, with both parties compensated for work completed.
The Breakdown:
Within weeks, significant issues surfaced. The entrepreneur discovered that the potential partner was being sued by his former employer for allegedly forging documents to justify his dismissal. His actions during the partnership mirrored the assessment results – he demonstrated a poor work ethic, treated the entrepreneur poorly, and failed to meet even basic performance standards.
Outcome:
Recognizing the risk, the entrepreneur exercised her right to exit the partnership early, incurring minimal damages due to the protective measures.