Business Partners are like co-founders and this means that they can help in running the business and designing the business strategy. Leaving things unsaid or undefined can often lead to disappointment, anger and frustration. Partners can conflict over numerous issues, including work ethics and financial goals. Conflicts may also occur due to an unsuccessful division of labour within the company and unsynchronized styles of leadership. This is why it is extremely important to know how to establish and maintain business partnerships.
It is also necessary to develop a foundation contract with your business partners before starting a business. Long term partnerships often carry a high degree of risk due to the different interests of each side. Therefore, it is very important to choose the right partner. A good partner should complement the uncertainties on your side. The partner should have the required skills, financial resources and knowledge areas that can complement your expertise in order to form a strong union.
Experts argue that a partner should be someone that you can spend a lot of time with. If you are significantly different from you partner, it can lead to communication problems which can cause bigger problems down the line.
You should always find ways to refresh your business relationship with your partner in order to stay on the right track. First, it is necessary to discuss details like obligation and rights and write them down on a piece of paper. Even if you don't have a company at the outset, forming a foundation contract is much better than relying on verbal discussions and agreemnts.
The partnership contract regulates the business relationship.
Experts claim that the business relationship relies on a comprehensive partnership agreement. It defines ownership, profit sharing formula, ownership structure and other details that are relevant to managing a successful business.
The main focus should be on the legal aspects of the business partnership because it represents a solid foundation for forming a strong relationship. Of course, it is also important to maintain the relationship through informal meetings - a majority of partnerships are founded this way. The formal aspect simply exists because you need to have a certificate with signatures on it.
It is believed that good business partners are two or more people with same system of values and interests - that's why they are relevant to proper functioning and success. Knowledge compatibility on its own, cannot help if both sides don't share the same value system and ambitions. Every business has its ups and downs and as such, it is important that you both have optimistic views, no matter how hard things get.
In order to maintain a good relationship with your partner, you should focus on having informal meetings from time to time. Sometimes it is important to organize a business lunch and discuss certain things over a meal and drink. You should be careful not to be too informal and the only way to do this is by dressing up formally and choosing a decent restaurant. This restaurant should be warm and quiet with a variety of dishes on the menu - Dessert wine will compliment the dish and make your lunch more comfortable and relaxing. And don't forget that this is an informal meeting, so avoid starting business conversations as soon as you start eating.
Some quick tips for a successful partnership are as follows:
- Get to know you potential partner and learn more about his/hers personal life, ideas and goals
- Consult an attorney to create a written partnership agreement
- In the event of a crisis and a need for exiting the partnership, create a plan for your stand-alone business
- It is better not to start a company if you see any inconsistencies - Good partners either have the same or similar value systems.