Case Studies

How Role-Based Assessment Prevented a Costly Business Partnership Mistake

Avoiding Partnership Pitfalls with Role-Based Assessments

This case study showcases how a startup entrepreneur used CollabGenius’s Role-Based Assessment to evaluate a potential business partner. Despite his impressive presentation and relevant experience, the assessment uncovered critical red flags, including inflexible leadership, fear of challenges, and poor team dynamics.

Although a trial partnership was attempted, the partner's behavior validated the assessment results, leading to an early and low-cost exit. Structured agreements and data-driven insights protected the entrepreneur's business from a costly mistake, emphasizing the importance of objective evaluation tools in high-stakes decisions.

Company A

Client: Startup Entrepreneur 

Industry: Assessments & Consulting 

Challenge: Selecting the Right Business Partner 

Background: 

A startup entrepreneur was seeking a business partner to help grow her company. By  chance, she met a sales manager from a competitor at the gym. He appeared to be an  ideal candidate – well-educated, polished, and with relevant industry experience. Excited  by the potential synergy, she shared her vision, and he quickly expressed interest in joining  forces. 

His background in a similar company made him seem like a perfect fit. However, the  entrepreneur, committed to making informed decisions, asked him to complete her  company's Role-Based Assessment, a tool distinct from traditional personality tests used  by competitors. 

The Assessment Results: 

To the entrepreneur’s surprise, the assessment revealed concerning results: • Rigid Leadership Style – Highly inflexible in managing projects and processes. • Fear of Challenges – Secretly terrified of overcoming obstacles necessary for  business growth. 

  • Domineering Behavior – Inclined to dominate team members, disregarding diverse  viewpoints. 
  • Lack of Empathy and Availability – Unwilling to engage with or support others,  showing favoritism in decision-making. 
  • Limited Vision – Narrow focus with minimal adaptability, restricting innovative  thinking. 

These results starkly contrasted with his confident and charismatic presentation. 

Despite Red Flags: 

Despite the alarming assessment, the entrepreneur proceeded with a trial partnership,  acknowledging a degree of “semi-willful blindness.” To protect herself, she structured a  trial partnership agreement with clearly defined terms: 

  • The entrepreneur retained 100% ownership initially, with the option for the  entrepreneur to sell 50% within six months
  • Both parties agreed to equally share expenses during the initial trial period and  contribute full-time to the company’s growth. 
  • In case of dissolution, the entrepreneur would retain ownership, with both parties  compensated for work completed.

The Breakdown: 

Within weeks, significant issues surfaced. The entrepreneur discovered that the potential  partner was being sued by his former employer for allegedly forging documents to justify  his dismissal. His actions during the partnership mirrored the assessment results – he  demonstrated a poor work ethic, treated the entrepreneur poorly, and failed to meet even  basic performance standards. 

Outcome: 

Recognizing the risk, the entrepreneur exercised her right to exit the partnership early, incurring minimal damages due to the protective measures.

Key Takeaways: 

  • CollabGenius’s Role-based assessments provided critical insights that  traditional hiring processes and first impressions may have missed. 
  • Structured agreements safeguarded the entrepreneur’s interests, allowing for a  smooth exit. 
  • The experience reinforced the importance of objective data in business  partnerships, preventing costly, long-term mistakes. 

Conclusion: 

This case highlights how Role-based assessments can reveal hidden behaviors and  empower leaders to make informed decisions. By trusting data and maintaining  safeguards, the entrepreneur avoided significant financial and operational setbacks,  preserving her company’s vision and growth trajectory.

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