A Bad Business Partner Could Cost You Millions — Here's How to Avoid a Toxic Partnership Finding the ideal business partner can elevate your business, but a poor fit can sabotage your progress. Here are three essential strategies for evaluating potential collaborators to ensure they are the right fit before you commit to working together.

Business partnerships can be a double-edged sword. At their best, they create dynamic, inspiring opportunities for two people to combine their strengths and resources — achieving more together than they could alone. However, not all partnerships are created equal. The wrong collaboration can be costly, derailing even the most promising ventures.

Red flags such as a lack of professionalism, a questionable track record or lofty promises can all signal trouble down the road. To avoid unpleasant surprises, it's critical to find collaborators who are not only compatible but also trustworthy. Here are three strategies to guide you when evaluating potential partners before making a commitment.

Related: 8 Critical Considerations for Choosing the Right Business Partner

1. Vet their track record

Before partnering with someone, take the time to understand their work history, including their professional achievements and any challenges they've faced. Their past can offer vital insights into their reliability and consistency.

Start with references — think of this process like a job interview. Verify their professional background and ask for examples of past collaborations. Then, connect directly with their former business partners to gather honest feedback about their working style. Be upfront about your intentions, explaining that you're doing due diligence to build a strong foundation.

Be sure to ask the right questions. I always ask, "Why did your previous partnerships end?" Often, I hear reasonable explanations, but sometimes I notice patterns of blame-shifting or deflection. Be wary of vague responses, as they can indicate future issues.

Document these conversations and look for patterns. Are they consistently professional when discussing past partners? Do they take ownership of their role in both successes and failures? When they can openly discuss past experiences, acknowledge mistakes and explain lessons learned, this often demonstrates the kind of self-awareness and professionalism that you want to have moving forward.

Additionally, investigate their digital footprint. Search for reviews, public records or any mentions of unethical behavior. A solid online presence can validate a partner's claims, while gaps may warrant further investigation. A lack of information isn't always a dealbreaker, but it's worth investigating further.

Sometimes, the search comes up short. In those cases, I lean on my intuition. Trusting your gut can be just as important as factual research when vetting a potential partner.

Related: 5 Characteristics to Look for in a Business Partner

2. Observe their actions

While past performance offers crucial insights, equally telling is how potential partners conduct themselves in current interactions. After all, their everyday behaviors provide a real-time preview of what working together might look like. Observe how they handle text and email channels, meet deadlines and handle requests. This will give you an idea of their priorities and reliability.

When evaluating communication styles, look for alignment between yours and their methods. I once worked with someone who used rapid-fire, brief text messages to communicate. These were one to three words long, and they would sometimes send 10 notifications in a row. As someone who prefers detailed emails, I found their messaging style cryptic. Despite efforts to adapt, our varied styles led to confusion and frustration.

Additionally, pay attention to their response times and attention to detail. Many professionals prioritize timely communication, whether through messages or calls. If you're observing consistent delays or incomplete answers, consider whether your professional standards align.

I find it helpful to set clear expectations. To avoid miscommunication, I include specific calls to action in my messages, such as "Please confirm" or "Reply by the end of the day." Another strategy I find effective is numbering each request or discussion point in my messages. When points are grouped into a single block of text, important requests can get lost. This structured approach ensures nothing gets overlooked and makes it easier for partners to provide focused responses to each item.

Related: 3 Rules We Broke to Establish Trust in Our Business Partnerships

3. Evaluate verbal cues

Beyond observing their professional habits, I've found that the way potential partners communicate — particularly their choice of words and responses to direct questions — reveals volumes about their trustworthiness and commitment level. Watch for those who make lofty promises or dodge direct questions. Do they walk their talk? Observe reliability patterns by assessing how their words align with actions. If their statements sound more like fantasies than grounded plans, consider it a warning sign that they might not deliver on their commitments.

Document your conversations carefully to track these patterns. As someone who is legally blind, I use a recorder to capture discussions and catch details that might be unclear in the moment. Whether through recordings (with permission) or detailed meeting notes followed by email recaps, maintaining clear records helps ensure accountability and prevents misunderstandings about what was discussed or promised.

Pay special attention to how potential partners handle direct questions. Rather than filling awkward silences or accepting vague responses, let them lead the conversation. I avoid yes-or-no questions, instead asking open-ended ones like "Why do you want to collaborate?" Their ability — or inability — to provide clear, thoughtful answers often determines whether I move forward. Evasive responses or consistently unrealistic projections typically signal that it's better to step back from the collaboration.

Building successful business partnerships is an art and a science. While thorough vetting provides the foundation, watching for consistent professionalism in day-to-day interactions reveals a potential partner's true nature. As someone who relies heavily on verbal communication, I've learned that how people express their vision and handle direct questions often predicts their long-term reliability. The key is maintaining a balanced perspective: remain open to opportunities while conducting proper due diligence.

Remember, finding the right business partner goes beyond complementary skills — it's about aligning with someone who shares your standards for transparency, communication and mutual respect. When you evaluate potential partners through these three lenses — past performance, present behavior and verbal consistency — you can protect yourself from costly missteps while setting the stage for truly transformative partnerships. Approach each potential collaboration with both optimism and discernment and, with the right partner, your business can achieve extraordinary growth and create lasting value.