Starting a business in Partnership, things to avoid

Some of the greatest businesses in the world have been of partners. Google, Hewlett-Packard, Dolce and Gabbana, Apple etc are just few super famous business houses started in partnership. While this can be a scary idea for some, it can prove very profitable if the partners are well in tune with each other. Just like any business avoiding certain pitfalls can increase chances of success.

Successful partnership in business requires understanding
Successful partnership in business requires understanding

How Business Partnerships can increase profits:

One of the positive aspects of being in a partnership is the complimentary skill set that can be used for the growth of the enterprise. The talents of both partners can be put together to serve the purpose of business management; one may be skilled in the creative side while the other in the organizing and implementation. Whatever it may be, smooth functioning is vital for any business especially in the beginning stages. The partners can work on mutually taking the company in the forward direction.

There are certain points to keep in mind, in-order to make the most of the partnership:

  1. Make a partnership agreement – In the case of a partnered enterprise chances are that the partners already knew each other and have a personal connection. But this should not come in between the business, to make sure that the friend and the business partner are clear on their duties it’s essential to make a partnership agreement. People change over time, but no one can guarantee that it will always be for the positive, so it’s better safe than sorry.
  2. Divide Responsibilities – Be clear on exactly how each partner is going to contribute to the company. Secret expectations will not get anyone anywhere. Making sure all have their work clearly drafted out will make each partner feel important because of their contribution; at the same time it will ensure smooth sailing.
  3. Planning an exit strategy – With time priorities change and relationships change too, the smartest thing to do is plan a suitable exit strategy for all partners involved, so that there is no negative effect put on the company when one leaves. To have a strong plan like this is crucial to make the business secure from any disasters.
  4. Friendship and Partnership are separate – Expecting the friendship to outlast the business can be tricky, if one partner were to leave the enterprise it may become difficult to maintain the same friendship with them. It would be awkward, and very difficult as well. It’s best to be realistic about such situations and always expect for the best but prepare for the worst.

For many, business partnership may sound like a nightmare from the beginning, especially if you’re the kind who likes to make all decisions and control your organization. Those who like to share their experiences and prefer the support of another in the work have it easier. However; in the end of it all the focus should be the business ventures not any other emotional bonding experience. The idea is to succeed in the business and not get side tracked by problems caused by being in an unproductive business partnership.