How to Choose the Right Partner

Source: Insight, The Magazine of the Illinois CPA Society

Follow this advice in choosing a partner for a small CPA firm:

• Determine your reasons for bringing on a partner. It makes the rest of the process easier. Be certain you really need a partner.
• Use your networks to find a partner. Choose someone with whom you’ve worked and are compatible.
• Avoid searching for someone who will function at a high level but has a low level of experience and training.
• Don’t compromise on the following traits:
  • Integrity.
  • Intelligence.
  • Leadership skills.
  • Technical skills appropriate for the practice.
• In small practices partners must feel like owners; therefore, the new partner should have entrepreneurial potential.
• The new partner should be able to build relationships inside and outside the firm.
• Beware of nonflexible people. They don’t serve clients well.
• Get input from others—business coaches, attorneys, etc.
• Set up a trial period before consummating the partnership.
• Investigate the person’s credit background, criminal or civil suits, and references.
• Come to agreement on your goals and objectives. If you have different visions of each other’s roles, the partnership is doomed.
• After consummating the partnership:
  • Learn how to communicate with each other. Styles may differ.
  • Communicate regularly on goals, objectives, and achievements.
  • If you can’t resolve a disagreement, turn to a respected intermediary.
  • Don’t allow other partners to unload their unwanted clients on the new partner.

From Insight, The Magazine of the Illinois CPA Society, May/June 2007. For the complete article, click on the following link: http://www.insight-mag.com/insight/index.htm, select May/June 2007 issue, then click on “Columns” and select Pick a Partner.