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There are many reasons why having a silent business partner is desirable. First, their contribution means that your business has more capital to work with. And because they don’t participate in the day-to-day operations of the business, you’ll still be able to run it as you desire. So, with a silent partner you’ll get the benefits of having an investor, without the interference that typically comes from them. The silent partner also gains from this setup, as they don’t have to devote time to running the business.
Important Note: The Silent Partnership Agreement
As with every other kind of partnership, you need to agree on terms with any prospective silent partnership before they officially fill that role. It’s preferable that your agreement with them be noted in a document that details each partner’s rights and financial stake in the business. Have a lawyer prepare the document, and make sure all parties involved sign it.Ways To Find A Silent Partner For Your Business
If the idea of having a silent partner seems appealing to you, here are some ways you can find one for your business.Consult With Family And Friends
Members of your family may be willing to play the silent partner role at your business. Or they could know people who have the resources to support your enterprise. It’s not uncommon for businesses and startups to take this route first before seeking funding from external sources.Sign up to the Connect Nigeria daily newsletter
There’s a risk that contacts closer to you will fail to honour your partnership agreement with them or fail to see the point of having such a document prepared in the first place. However, they’re also less likely to take legal action against you if the business falters.
Engage Business Contacts
Just like your friends and family, your business acquaintances may either be willing to become silent partners or know someone who could do so. They are more likely than your closest friends to understand the implications of being silent partners. On the flip side, they may be less lenient with you if the business fails. You should consider this carefully before deciding which of your business contacts you should present your silent partnership offer to.Go To Religious or Social Organizations
The religious or social organization you belong to could be a good place to find people who may be willing to become silent partners for your business. If the people there believe that you’re a trustworthy person, and if you’ve established good relationships with influential people in those circles, you could land yourself a partnership through them.Contact Complementary Businesses
You could also inquire about opportunities for silent partnership with businesses that offer products and services that complement your own. For example, if you produce clothing, you could approach textile manufactures and propose an opportunity to invest in your business to them. This sort of partnership could work because both parties operate in closely connected niches and industries, and understand the opportunities available in the space.Ramp Up Your Networking Efforts
We have already hinted at this. If your immediate contacts aren’t willing or able to be silent partners at your business, you’ll need to broaden your contact list to find people who would like such an opportunity. Get deliberate about networking. Meet new individuals and businesses with the resources required to invest. Build your relationship with them, and then ask them if they could become a silent business partner. The more quality contacts you propose to, the higher your chances of finding what you’re looking for.Final Words
We’ve shared some great ways to land a silent partner. If you’d like to do so, you can follow these tips to discover one that’s suitable for your business. Featured Image Source: Rhica TechnologyGot a suggestion? Contact us: editor@connectnigeria.com