Our experience has shown that despite the importance of the ability of your potential partner to finance the business, this is not the essential quality that will sustain the relationship.

How do you choose the right partners a businessman who is preparing to launch a business ?
Allan Kahoya, Kenya

Entrepreneurs often find it difficult to find someone to finance your business. Many do not, but anyway go ahead with the launch, and then run out of money. Find a reliable source of initial capital is probably critical to the success of your business. If you can finance it yourself, great. If a partner can provide you with funding, then that may also work.

When I started my career I tried intentionally to not include any financial partner, and she wanted to keep all my business activities. My friends and I worked hard to keep it alive using only the cash it generated. With our first company, Student magazine, we did everything we could to sell advertising and therefore pay their debts. When we started Virgin Records, deliver flyers to promote our stores.

This meant that our expansion was slightly slower than we would have liked, but it also meant I could reward my colleagues with shares of the company.

He was free to conduct business in the direction he wanted. This gave me the freedom to quickly take advantage of opportunities and also to make tough decisions without delay or distraction.

The adventure of our early years attracted employees and partners who were attracted by our spirit and sense of humor. Reflecting on the partners chosen for the music business, I remember that were selected for very practical reasons. One had the largest record collection I knew, another could add and subtract better than me, someone else always seemed to answer all questions.

Over the years, my companies and businesses have become more sophisticated. Since then Virgin has joined many types of organizations, from large multinationals and professional investors to entrepreneurial management teams seeking to wield the Virgin brand as they take over a market.

Our experience has shown that despite the importance of the ability of your potential partner to finance the business, this is not the essential quality that will sustain the relationship and long-term undertaking.

When evaluating a proposed partnership, not focus solely on the capital you need to launch your business. Ask yourself: Does this person or group will give us space and time we need to form an excellent business? Keep in mind that a financial partner dictator can dull the spirit and enthusiasm of a new venture, deadening the spark that made him launch the project, probably the spark that will differentiate your business from the competition.

I have found that our societies are better when Virgin found an investor who accepts a minority of the shares and provides capital and support, but that leaves us running the business and the hiring of key employees.

We have created several exceptional companies across the mobile phone business Virgin. In most cases, we find a mobile telecommunications operator seeking to leverage the strong brand appeal of Virgin to reach a new section of the market. The telecommunications company provided the cellular network and, in some cases, some capital, we provided our experience, brand and marketing people needed to realize the new business.

When the situation has reversed and Virgin has partnered with a small management team ready to seize a new market sector or territory, I like to think that we respect our principles, giving our members the time, space and capital needed to form the company.

Virgin Active, our fitness business has been formed in partnership with the founding management team: Frank Read and Matthew Bucknall. Over the past 12 years we have completed acquisitions together, and we have expanded to six countries. Virgin Active

In general, you need to ensure that your people are inspired and have the freedom to be creative. After all, the success of your business depends on your company more important: it has with its staff.

If this company goes well, your chance of success is much higher. In the same way that freedom need to build your business according to his vision, staff will need freedom to develop ideas, own as required by its customers and other employees.

That workers with or without that independence, integral to the future success of business depends on who you choose as your financial partner.

So remember, a partner with money is very useful, but one that also confers on you and your team space, time and freedom needed to make the business is a true friend and that friendship will stand the test of time.

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