• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Jensen Huang made his $172 billion fortune on AI chips. His family's $75 million gift to Vanderbilt argues art decides what technology is for

2

'The demographic dividend of the last 40 years is ending': J.P. Morgan says the world is running out of the two things that kept interest rates down

3

The $39 trillion U.S. national debt isn’t as high as Japan’s and Singapore’s relative to economy size—and yet it's still worse somehow

1

Jensen Huang made his $172 billion fortune on AI chips. His family's $75 million gift to Vanderbilt argues art decides what technology is for

2

'The demographic dividend of the last 40 years is ending': J.P. Morgan says the world is running out of the two things that kept interest rates down

3

The $39 trillion U.S. national debt isn’t as high as Japan’s and Singapore’s relative to economy size—and yet it's still worse somehow
CommentaryLeadership

The one mistake every company makes

By
Sheeroy Desai
Sheeroy Desai
and
Bethany Cianciolo
Bethany Cianciolo
Down Arrow Button Icon
By
Sheeroy Desai
Sheeroy Desai
and
Bethany Cianciolo
Bethany Cianciolo
Down Arrow Button Icon
September 18, 2015, 9:00 AM ET
Brian Smeets Copyright Brian J Smeets 2012
Add Fortune on Google for similar content.

The Leadership Insider network is an online community where the most thoughtful and influential people in business contribute answers to timely questions about careers and leadership. Today’s answer to the question “What do you look for in the ideal business partner?” is by Sheeroy Desai, CEO and co-founder of Gild.

Deciding who to partner with — either as an individual executive or as a business — is a choice that comes with a lot at stake. To be absolutely certain they’re doing the right thing for the business, leaders should pick people they’re confident they can rely on and trust to do the right things for the good of the company. In business, as in life, the best partners are honest, reliable, and contribute something we otherwise wouldn’t have.

In business partners we (must) trust
Leaders today sometimes build their companies using the same strategy you might apply to solving a jigsaw puzzle: Grab the first piece that looks right, shove it in, and then see if it fits. If it doesn’t work, you just try again. But deciding which partners to involve in your business can have a huge impact on its overall success and the cost of a bad partnership can be astronomical.

That’s why anyone looking for a new business partner must prioritize two traits above any others: trust and reliability. Other characteristics and skills are also important, but these two are the barrier for entry. Trusting a partner depends on whether or not he or she can put the company first and keep its strategy and plans confidential. Reliability is all about prospective partners keeping their word and doing the things they’ve committed to deliver. Trust and reliability are the foundations for the rest of your relationship, which needs to be solid in order for everything else to work.

You can’t judge a book by its cover, so find a partner who’s an open one
Trusting the people you collaborate with doesn’t just mean knowing they won’t divulge company secrets — it means knowing they’ll be honest in all things, especially around the hard topics. Once in a while, every leader has to face some unpleasant truths — even when it comes to his or her own work — and that’s a good thing.

More eyes also equals fewer missed details — as long as those eyes come with mouths, too, to point something out that might have slipped by you. A good partner talks about the way things really are, tells you when you’re doing something wrong, and helps make you better. A great partner wants the same in return, but doesn’t get defensive. Work with people and companies you know will keep you in the loop about what’s going on and will offer useful feedback. Open, communicative people and partners are a huge asset.

See also: The real reason 65% of startups fail

Many companies make the mistake of partnering with businesses or executives who say the right things instead of the ones who deliver results. Long term, these yes-men and people-pleasers erode teamwork and trust. They’re far less useful than partners who opt to identify sticky issues before they become bigger problems.

Opposites (should) attract
Partners should add something unique and valuable to the relationship. Find people or companies that complement your strengths or weaknesses and shine brightest where you don’t.

Look for folks who are willing to say they don’t understand something rather than just go along for the ride, yet are still mart enough to understand different aspects of the business. Diversity of style is key when it comes to partnerships. Teams of people who are introverts, extroverts, optimists, and even pessimists think differently thanks to their unique perspectives, and will make better decisions than homogenous ones ever could.

When you find yourself in the market for a partner, whether it’s an individual or a business, prioritize trust, openness and diversity in deciding who can truly add value to your company. It’s one of the most important choices you’ll make, so be sure to treat it that way.

Read all responses to the Leadership Insider question: What do you look for in the ideal business partner?

Why you keep picking the wrong business partner by Tom Gimbel, CEO of the LaSalle Network.

Why friends make terrible business partners by Todd McKinnon, CEO of Okta.

What you need to know before choosing a business partnerby Clark Valberg, CEO of InVision.

Never pick a business partner based on their skills alone by Pau Sabria co-founder of Olapic.

Business lessons from Iraq: How to create a dynamic team by Chris Fussell, chief growth officer at McChrystal Group.

Dolby CMO: What Star Wars taught me about finding business partners by Bob Borchers, senior vice president and CMO at Dolby Laboratories.

The quickest way to sabotage your new business by Jim Yu, CEO of BrightEdge.

How to avoid picking the wrong business partner by Ryan Harwood, CEO of PureWow.

3 signs you need to ditch your business partner by William Craig, founder and president of WebpageFX.

The most important relationship you will make in your career by Nirav Tolia, CEO of Nextdoor.

About the Authors
By Sheeroy Desai
See full bioRight Arrow Button Icon
By Bethany Cianciolo
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Commentary

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • TikTok icon
  • YouTube icon

Latest in Commentary

craig
CommentaryPharmaceutical Industry
Big pharma’s patent cliff meets a new biotech Cold War: We need to outrun China, not outlaw it
By Craig GarthwaiteJuly 24, 2026
11 hours ago
tim
Commentarysmartphones and mobile devices
NYU Stern pricing expert: There’s a hidden ‘AI tax’ hitting Apple, Dell — and your next phone
By Srikanth JagabathulaJuly 24, 2026
11 hours ago
nyse
CommentaryEconomics
AI doesn’t end scarcity. It relocates it
By François Candelon, Paul-Louis Andres and Augustin ManchonJuly 24, 2026
13 hours ago
Can Bangkok future-proof itself against the heat?
CommentaryThailand
Can Bangkok future-proof itself against the heat?
By Curtis S. Chin and Ella TanJuly 23, 2026
1 day ago
mm
CommentaryLeadership
Michael Muthukrishna: The ‘lone genius’ myth is wrong and it’s holding back your business
By Michael MuthukrishnaJuly 23, 2026
1 day ago
Paul Keary (L) and Mike Sutcliff (R).
CommentaryAI agents
Teneo & Thoughtworks CEOs: the AI race will be won with governance, not speed 
By Paul Keary and Mike SutcliffJuly 23, 2026
1 day ago

Most Popular

Jensen Huang made his $172 billion fortune on AI chips. His family's $75 million gift to Vanderbilt argues art decides what technology is for
Big Tech
Jensen Huang made his $172 billion fortune on AI chips. His family's $75 million gift to Vanderbilt argues art decides what technology is for
By Sydney LakeJuly 23, 2026
2 days ago
'The demographic dividend of the last 40 years is ending': J.P. Morgan says the world is running out of the two things that kept interest rates down
Economy
'The demographic dividend of the last 40 years is ending': J.P. Morgan says the world is running out of the two things that kept interest rates down
By Eleanor PringleJuly 24, 2026
15 hours ago
The $39 trillion U.S. national debt isn’t as high as Japan’s and Singapore’s relative to economy size—and yet it's still worse somehow
Economy
The $39 trillion U.S. national debt isn’t as high as Japan’s and Singapore’s relative to economy size—and yet it's still worse somehow
By Sasha RogelbergJuly 23, 2026
1 day ago
The millennial generation has split, new Fed research shows: Those over 35 are edging toward boomer-style wealth, while everyone else falls behind
Real Estate
The millennial generation has split, new Fed research shows: Those over 35 are edging toward boomer-style wealth, while everyone else falls behind
By Nick LichtenbergJuly 22, 2026
2 days ago
Spain lifted the World Cup, but the IRS still gets a cut of its $50 million pay day as players, coaches and refs all face complex U.S. “jock taxes”
Personal Finance
Spain lifted the World Cup, but the IRS still gets a cut of its $50 million pay day as players, coaches and refs all face complex U.S. “jock taxes”
By Joshua HongJuly 23, 2026
2 days ago
Current price of oil as of July 24, 2026
Personal Finance
Current price of oil as of July 24, 2026
By Joseph HostetlerJuly 24, 2026
12 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.