Hey Lykkers! So, you’ve met someone brilliant. The energy is electric, the ideas are flowing, and you’re both ready to change the world together. It’s tempting to grab a pen and celebrate over that fancy contract. But stop. Right there.

The most dangerous deals are the ones that feel the best at the start. Before you sign your name and shake on a future together, you need to do the unsexy, essential work of due diligence. Think of it as a pre-flight checklist for your new venture. Skip a step, and you risk a very bumpy—or even catastrophic—journey.

Let’s walk through the 10-point checklist that goes beyond the excitement to uncover the real foundation of your potential partnership.

1. The Financial Health Scan

It’s not about being nosy; it’s about survival. You must verify their financial stability. Ask for documentation like bank statements, profit & loss sheets, and tax returns for the past 2-3 years.

As Harvard Business School Professor Guhan Subramanian notes in his book Dealmaking, "Financial transparency isn't a sign of distrust; it's the first brick in building mutual trust and a sustainable partnership" (Subramanian, 2021). Look for consistent cash flow, manageable debt, and a history of meeting obligations.

2. The Reputation Deep Dive

A quick internet search can only reveal so much. Check industry forums, court records for litigation, and their standing with the Better Business Bureau. Reach out to former partners or clients not listed on their reference sheet. A pattern of unresolved disputes is a major red flag.

3. The "Culture Fit" Test

Can your teams actually work together? Schedule a casual, non-work interaction between key team members. Observe communication styles and decision-making processes. A partnership between a hierarchical corporation and a flat-structure startup can be a culture clash nightmare if not managed.

4. The Legal & Compliance Audit

Are they operating above board? Verify business licenses, permits, and that they are in good standing with the state. Ensure they have the proper insurance (liability, workers' comp). Legal expert and author Mike Volkov emphasizes, "Compliance due diligence is not a box-ticking exercise. It's a strategic assessment of a partner's operational integrity and risk to your brand" (Volkov, 2022).

5. The Intellectual Property (IP) Inventory

Who owns what, and what are you sharing? Clearly map out all IP—patents, trademarks, proprietary software, client lists—each party brings to the table. Define ownership of any new IP created jointly. Get this in writing before a single collaborative sketch is drawn.

6. The Operational Reality Check

How do they really get things done? Ask to see their project management tools, communication protocols, and quality control processes. Incompatible systems can strangle a partnership with inefficiency.

7. The Vision Alignment Conversation

Beyond the first project, where are you both going? Discuss 3-year and 5-year goals. If one partner dreams of a quick flip and the other wants a legacy brand, that misalignment will tear you apart.

8. The Conflict Resolution Blueprint

You will disagree. How will you handle it? Decide now on a formal process. Will you use mediation? A specific senior advisor? Define the steps before tempers flare.

9. The Key Person Dependency Check

Is the entire relationship tied to one charismatic founder? What happens if they leave, get sick, or sell? Discuss succession plans and ensure multiple points of contact are established.

10. The Exit Strategy Discussion

It feels awkward, but it’s critical. Under what terms can either party walk away? Define triggers (e.g., missed targets, ethical breaches), notice periods, and how assets and clients will be divided. A clear exit plan isn’t planning for failure; it’s ensuring a dignified and fair conclusion if paths diverge.

Lykkers, doing this homework isn't about killing the vibe. It’s about protecting the brilliant vision you both share. A partnership built on verified trust and clear expectations isn’t just safe—it’s liberated to do its best, most innovative work. Now, go check your list.