Just like romantic relationship, business partnership is tricky and has high chances of failure. However, when the relationship between the two business partners is healthy, greater and faster success can be easily achieved than what a single person would be able to do.
In just four years, we have achieved unprecedented successes and achieved great milestones in my audio-equipment company, OrigAudio. The reason for lots of these successes is the business partnership existing between my business partner, Mike Szymczak and I.
You need to know how best to choose a partner that would help in driving your business to a greater pedestal and level of functionality and not sinking it faster than ever. Below are some of the tips you should consider to take your business to the next dimension.
Similar work habits
Work habit is very important to consider when choosing business partnership. The partnership has to be equal in terms of work habits. Assuming you work from 6 am to 9 pm, your partner should be able to work the same way. If he leaves work by 5 pm in such a situation, then there will definitely be a problem along the line. To ensure fair play, you need to establish hours, responsibilities and expectations at the early stage of the business.
Stability in Finances and emotions
You need to know your partner’s financial situation no matter how invasive it seems. You should find out if your partner will need an immediate paycheck or perhaps can survive for a longtime when the business faces challenges. The truth is that if your partner is in an unstable financial situation, he may not be able to make some necessary financial sacrifices to the advantage of the business itself.
As much as financial stability is necessary, emotional stability is also very important. Since the relationship is supposed to last for a longtime, you should be able to tolerate the experience with him. Your partner will probably be standing for your business in different places and professional bodies, thus you should ensure that he can stand the pressure.
You should go for a partner whose skills are complementary to yours and not someone who is exactly like you. When you go for someone with complementary skills, you will ensure that his skills will help in expanding what you can achieve as a team. Some of the great and renowned partnerships are simply examples of complementary skills and the partners depended on one another’s strengths.
In many cases, partners agree at the beginning however this is usually in the short term. It is also important to put into consideration the long-term goals of the business. You need to ensure that the future you are trying to build is in line with what your partner wants in the long term.
- Trust is pivotal for every good relationship. However, when finances are involved, trust becomes difficult to achieve. You should be able to trust your partner with your child, social security number or a key to your house. If you cannot trust your partner in these things, then there is no need being in the same business with such a person.
- The partnership between Mike and I has been a successful one because we devote time to discuss about lots of important issues including finances, goals and expectations. Constant work is vital in building a relationship and maintaining it and therefore before putting in your money, energy and time into the new business partnership, you should consider these tips carefully.
Society in business can be complicated. Frankly, most societies fail; However, successful societies can achieve higher levels of success more quickly than those who pursue the same goals individually. On the other hand, if these individuals pursued the same goals on their own, they would not do so as fast as societies. Below are some ideas that help guide people to form successful societies.
Values: this area is usually the most fundamental factor affecting the relationship of partners. Everyone has their own set of values, but some are more aware of them than others. What are your most important values and simply how are you committed to those values? Commonly, everyone agrees that certain values are important, but if you had to reduce your list of important values to one, what value would you choose? Conflicts usually do not start because someone is right and the other is wrong. Instead, both sides have different points of view and values. The same goes for conflicting values with partners. In the end, you probably have to choose between two values and it is better to know why one is more important than the other. You must have these values sorted by relevance in advance, so you can moderate your emotions during a difficult situation and do not close at the moment. Partners should share common values and live them to generate mutual respect.
A common goal: to avoid conflicting interests and disagreements, partners must determine what their common goal will be for their company. It is assumed that one of the goals is to generate profits, but how much profit does each of you expect to make? In addition, only shareholders will be motivated by a profit target. What shared goal will motivate not only one of the shareholders, but also the customers and the employees? What will be the directional purpose of the company that both want to carry out? A disastrous mistake is to work together blindly without determining where they are heading. Without a destination, any road will take you there, and that could be a treacherous road.
Commitment: what conflicting priorities are in each other’s lives and which could impact on the level of commitment towards the common goal? Someone who works during the nights and weekends, every day, could experience a conflict with a partner who closes his work at 5 pm to dine with his family. This partner might feel that the other partner is not carrying their own weight. However, the difference does not necessarily have to be a situation that negatively harms society. Although it is beneficial to have high levels of commitment, partners do not need to share the same work schedule to influence a successful society. At the very least, the partners must express what level of commitment they will have in the company, so that there is a mutual understanding and not an animosity.
Expectations: There is a saying in the company that indicates that, in the end, personal interests prevail. What do each of the partners in society expect to achieve? Be sincere! If your personal interests imply your ego, say so! One of the most important lessons is to set a limit on the amount of time each one will work with the other. At the end of the agreed time period, have a plan to evaluate your company. Create an exit strategy if society has come to an end. You will save yourself many anguish if both partners agree in advance on an appropriate way to renew and / or close society.
Final position: Be careful when choosing a partner who has a lot more experience or a lot more money than you. Obviously, it is beneficial to have a partner who can provide financial resources and experience to your company, but be careful, because if a society is broken and separated, the one with the most experience will get the money and the less experienced will gain experience.
Complementary strengths: two minds are always better than one, and a two-strand string is strong. List what strengths each partner has and then determine how much they match. If one partner likes to establish relationships with people, while the other likes systems and technology, then those strengths together could make a better whole.
Summary: As a business owner, trying to do everything on your own is impossible. Finding someone who understands your goals and wants to help you work to get them, is priceless. However, it is imperative that you and your partner share the same vision. Take the time to talk crudely and sincerely about your values, goals, strengths, finances and expectations. Develop a clear strategy by which to evaluate your company quarterly. Following these simple steps will give your society the opportunity to be successful.