Should You Background Check For Your Potential Business Partner?
Are you in the planning stages of a start-up or expanding and bringing on business partners into an existing company? Are you absolutely sure the person you will be trusting with your business is all they portray themselves to be? A high percentage of people embellish, omit and downright lie on their resumes. And it’s not just workers that do this. Executives are in on it too–contributing greatly to workplace fraud. A thorough background check could help eliminate this problem.
It is your responsibility to be sure any person you are considering as a business partner is honest and trustworthy. It’s not only your business at risk, you also need to be concerned about your reputation, your credit, the safety of your employees and legal issues resulting from unethical or illegal behaviors.
How will a background check impact your decision? Some things that are red flags may not turn out to be a deal breaker for you. But, they give you some insight into personality and habits about how this person will be to work with and give you the opportunity to make an informed decision instead of being surprised later.
To start with, how about financial issues? Someone with financial issues such as a bankruptcy or poor credit may not be able to contribute to your business. Do you want your name connected with them on loan papers? Will they put your company’s credit (and yours) at risk? Sometimes desperate people do desperate things too. If they get into a financial bind, will they be tempted to steal from the business?
And then there are personal issues…
You are putting all your time and energy into the business and you want your partner to do the same. Some people make one bad decision after another that results in them being in crisis mode all the time. A background screen is pretty good about finding information that clues you into people who fall into this category.
Business ethics are going to make a big difference in the future of your company too. Reputation, litigation, client poaching or using proprietary information inappropriately are all problems that can result from a poor partner choice and make a big impact on your business.
Don’t be shy about requiring potential business partners to go through a thorough vetting process. If they are a smart businessperson, they should want you to do the same.
Partnering with a CRA (Consumer Reporting Agency)
Partnering with a CRA that has the services you need for due diligence in choosing a business partner can help you perform background screening, provide education and license verification, drug testing at convenient locations, and support throughout the process. Not only can you feel confident that you are bringing the best partner into your start-up or existing company, but you will know that you have done due diligence both legally and ethically for your business, employees and customers. In addition to accomplishing this at a price that fits your budget, a professional CRA partner pays for itself by avoiding costly mistakes. For a free consultation or more information, contact Genesis Background Screening Services at 866 944-0041 ext 101, email getstarted@gbsspro.com or visit www.genesisbackgroundscreening.com
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Genesis Background Screening is not a law firm and provides our blogs for informational purposes only. The blog is not a substitute for experienced legal advice. Research any laws or regulations mentioned here, check with your legal counsel if you have questions and to confirm your organization is within the law regarding compliance.
Jacqueline McClure, Genesis Background Screening Services
