Starting a business in Partnership, things to avoid

Some of the greatest businesses in the world have been partners. Google, Hewlett-Packard, Dolce and Gabbana, Apple, etc., are just a 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 the chances of success.

One of the positive aspects of being in a partnership is the complementary 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 to make the most of the partnership:

Make a partnership agreement

In the case of a partnered enterprise, the chances are that the partners already know 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.

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.

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. There is no negative effect put on the company when one leaves. Having a strong plan like this is crucial to make the business secure from any disasters.

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 the best but prepare for the worst.

For many, the business partnerships 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 work have it easier.

However, the focus should be the business ventures, not any other emotional bonding experience at the end of it all. The idea is to succeed in the business and not get sidetracked by problems caused by being in an unproductive business partnership.