5 Lessons for Strong Business Partnerships
[/size]The adage that two brains are better than one may explain why a lot of entrepreneurs and small business owners, including me, create partnerships. However, it’s not just those brains that should work well together. Partners’ personalities need to get along too.
As a serial entrepreneur who’s launched many companies, I’ve made a number of partnerships. Along the way, I’ve learned some lessons when creating those partnerships.
Among the most helpful tips that I’ve discovered is making sure that you get along with your business partner. It’s important to find someone who complements your skills, but don’t underestimate the importance liking one another.
Communication is another big part of a business relationship. I spoke with business partners constantly to ensure we were on the same page and each knew what the other one was working on. I believe that ongoing dialogue is so important because it helps to reduce the risk of assumptions and encourages you to stay focused on your shared vision. Of course, there is likely going to be some miscommunication and disagreement. That’s ok. But I’ve found that open communication with my partners minimizes misunderstandings and helps us work through them more quickly.
There’s a great article from earlier this year about a long-lasting business partnership and communication is a theme that runs throughout.
I’ve learned many things about creating and maintaining partnerships during the past two decades. Although there are dozens of tips, here are five key lessons:
Partnership agreements: As I’ve mentioned in a previous post, I’ve been burned by not having the right agreements in place. It’s important for business partners to have clear partnership agreements drafted by attorneys.
Clear expectations: I’ve also learned the hard way that people, including business partners, can’t read my mind. I believe business partners should consistently set their expectations with each other.
Think about your clients: When evaluating a potential business partnership, I look at my weaknesses and what I need help with. I also think about my clients and what type of partnership would benefit them.
Mutually beneficial: It might sound obvious, but still should be noted. Partnerships should be mutually beneficial. In my experience, both sides need to gain something from the relationship for it to be worthwhile.
It’s ok to walk away: Like any relationship, a business partnership holds a great deal of promise. However, sometimes it doesn’t work out. That’s alright. Don’t stay in a business partnership if you believe it’s no longer viable. I’ve learned that it’s better to end the partnership and regroup than to force something that’s not working.
Of course, there are many more best practices for partnerships, but I’d recommend keeping these in mind. They’ve worked well for me.
If you’re looking for more information on how to start a business partnership, the Small Business Administration has some great resources.
Finally, partnerships aren’t for everyone. I started some businesses by myself and they’ve been very successful as well. I try to take a step back to consider if I really need a business partner for a venture before I approach anyone. Sometimes it makes sense. Sometimes it doesn’t.
That’s a call each entrepreneur has to make for him or herself.
source :
https://www.forbes.com/sites/patrickhull/2013/05/31/5-lessons-for-strong-business-partnerships/
