Many entrepreneurial business partnerships fail because the partners rush into the relationship, without really considering what is required of a successful partnership.
Following are 7 Key Components of a successful business relationship/partnership.
Compatibility: Before entering a business relationship/partnership, it’s essential to ensure that you and your potential partner share similar values, goals, and work ethic. A partnership between two people who are not compatible in these areas (regardless of how “skilled” they might be) can lead to frustration and ultimately, failure.
Trust: Trust is the foundation of any successful relationship/partnership. Without trust, a business partnership cannot thrive. Make sure you and your potential partner both trust each other before entering a partnership.
Communication: Communication is key to any success relationship, and a business partnership is no exception. It’s essential to always have open and honest communication, to ensure both partners are on the same page and to address any issues or challenges that will inevitably arise.
Decision-making: How decisions will be made and who has the final say should be discussed and agreed upon before entering a business partnership. This will prevent (or at least minimize) conflicts to help the business run smoothly.
Finances: Finances are a crucial aspect of any business partnership. Be sure to discuss how the business will be financed and how profits will be divided before entering a partnership.
Roles and Responsibilities: Each partner should have a clear understanding of their roles and responsibilities within the business. This will prevent confusion and minimize conflict for not only the partners, but for all team members. So make sure you know who does what.
Exit strategy: Things don’t always go as planned, and it’s important to have an exit strategy in place in case the partnership does not work out. This should be discussed and agreed upon before entering the partnership.
In summary, before entering a business relationship/ partnership, (Co-Founders) it’s important to consider compatibility, trust, communication, decision-making, finances, roles and responsibilities, and an exit strategy. By taking the time to consider these factors, you will increase the likelihood of a successful partnership and avoid a messy business divorce that costs you time, money, and energy!
Dr. Patty Ann
