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How to Spot a Dangerous Business Partner Before It Costs You

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Opinions expressed by Entrepreneur contributors are their own.

Key Takeaways A strong partnership can make or break your business, and knowing what to watch for early is key.

The right approach to choosing collaborators can save time, money and your sanity in the long run.

Building a company is one of the most intimate commitments you can make. You’re tying your future, your reputation and sometimes your family’s financial security to another person’s judgment. In that sense, business partnerships resemble the closest personal relationships in your life.

The problem is, founders often ignore red flags in business the same way people ignore red flags in dating. You see potential, you see charm, you see the dream and you convince yourself that the rest will fall into place. But chemistry is not compatibility and charisma is not character.

Over the years, I’ve learned how to spot warning signs early — and failing to do so can cost far more than heartbreak; it can cost your company. Here’s what I’ve learned.

1. Overselling and underdelivering: don’t let the hype blind you

Great first meetings can feel like great first dates: energy, confidence, big promises. But momentum fades — what matters is what happens after the first impression.

Red flag: They speak in glossy generalities but avoid specifics.

What it means: They may lack a plan, discipline or rely on enthusiasm to cover gaps in execution.

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