When a Pair Shouldn’t Be Two of a Kind

Bruce Korman was a real estate developer when he began designing efficient systems for processing coins and currency. He opened a wholesale cash processing center in 1994 and the next year introduced retail self-service Coinbank deposit machines. His firm plans to roll out a state-of-the-art automated telled machine this year. During his career, Korman has had more than a dozen partners and has learned that choosing a partner can make or break a business. Korman was interviewed by freelance writer Karen E. Klein.

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Over the years, I have probably made all the mistakes possible in choosing partners. A partnership is not much different from a marriage, because you are tied to that person legally and getting out of the commitment is not easy.

Your whole livelihood is at stake when you choose a partner. But I’ve noticed people often pick partners for the wrong reasons and without much thought. That usually spells trouble.

I began early on with partners who had skills similar to my own. But I found we got broadsided with problems we did not anticipate because we had the same blind spots. I think when you choose a partner, you first have to recognize your own weaknesses, then find someone who is strong in the areas you lack.

A friend of mine who opened his own company recently told me about a lot of business headaches he was having. I asked him why his partner wasn’t helping him with his hiring problems. He said that partner was not really good with people. Then I asked why his other partner wasn’t helping him purchase equipment. He said that guy was not a good negotiator.

I found out he had brought in two friends from school who are computer programmers. Neither of them has management skills. What he should have done was find a partner with the strong business background he lacks and hire his friends as high-ranking employees.

The typical inventor or creative type comes up with great ideas but doesn’t have the skills necessary to implement them in the real world. Other entrepreneurs may be strong organizationally and good with numbers, but they can only stand back and marvel at how other people always seem to come up with ideas they never have. If these two types can hook up, they will probably make great partners.

It is a rare person who has skills in both areas. And even that person might recognize some weakness that they have that should be balanced out in a partner. If a person is high-strung, for instance, he could use someone more even-keeled. If they are too analytical and dry, they might choose someone more emotional and intuitive.

I once took on a partner who I thought had complementary skills to mine. But I did not take the time to get to know him well. I found out too late that he did not communicate well, so he withheld things from me until he got so frustrated he up and quit. I was totally surprised because he never even told me he was upset.

Now, I try to spend quite a bit of time getting to know a potential partner, in business settings as well as social situations. Ideally, I will do some deals and conduct business with a potential partner before ever asking him to join me in my firm. If I don’t know him well, I familiarize myself with his background and I’m not afraid to ask bold questions. I expect to be asked the same kinds of questions as this person evaluates me.

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At a Glance

* Company: Cash Technologies Inc.

* Owner: Bruce Korman

* Nature of business: Develops and manufactures banking technology, equipment and software.

* Location: Los Angeles

* Year founded: 1994

* Number of employees: 40

* Annual sales: $18.1 million