Business partnerships are great when you don’t have enough in your bank account to start a business. On the contrary, there are certain signs that you need to follow. It can have many positive sides but think twice before you enter into a partnership with multiple people.
Like everything, if there is a positive side there should be for sure some negative sides also. These signs will enlighten you whether your partner is good for your business or you are better without him. So, without further adieu lets jump right in.
About the good
There are many positive things in partnering with others to start business. It is always to have someone else to share your happiness and sorrows along your journey. But again everything come at a cost, so we will see about the good things of partnerships in business.
“None of us, including me, ever do great things. But we can all do small things, with great love, and together we can do something wonderful.” – Mother Teresa
Sharing the work
Doing everything solo means you will be overburdened with duties and responsibilities. So, dividing the responsibilities will ease your life and help you to more focus on scaling up and sales. You can have a great business idea, but you can’t turn into a profitable one unless you have a helping hand. An entrepreneurship partner provides just that.
When you have someone to share the work, you will be stress-free. If you take care of business alone, then managing work will almost become impossible. A one-man army cannot take care of online marketing, distribution, packaging delivery, and finance of business, for that you need someone.
Getting more talents in the team
What great you may be, it is always great to have multiple people to brainstorm to make your thoughts clearer and get a second opinion. A single mind cannot think of innovation, but more than one can. Sometimes your head may be jammed and you cannot concentrate on work, this is the time when partners can give you good support.
More partners, more capital
Yes, as written if you have more partners it is almost like your capital also will be increased in terms of manpower and finances. Even if the partners are joined on sweat equity, your talent pool will be increase and their-by human capital. So, it is always good in terms of capital to have more partners.
What are the Bads?
After reading the above points, you may still think that it is always good to go with multiple founders or partners, well just hold on and read the article fully before going to take a decision. These are things that have solutions, so it can be solved with your own laser focussed efforts.
No clear communication
Communication is a key thing for a transparent process, especially if you are holding a critically responsible position transparent communication is the basis for smooth working between partners. Many problems usually start with poor communication between partners.
It is always better to take opinions before making decisions so that you will get a consensus of everyone in the group. This is so important to make them feel that they are equally important like you in the business. Even if you have a difference in opinions, it is better to have transparent communication between your partners.
Less involvement of partners
I had seen much business where partners have issues with involvement and they depart due to these issues if you are holding equity in a firm you are bound to be responsible for the stake you own and you should return in terms of your efforts as like other partners.
Many times issues arise when some of the partners are not interested in the goal of the company and they start involving less in the company but remember their stake will be as such as per the initial model, this creates a difference of opinion among partners which may lead to breakups and ultimately affect the future of the company.
No common vision
Vision is what makes a company successful, as a leader you should have a vision and all of your partners should share a common vision. The problem comes when the vision becomes different, this arises due to the different thoughts and mindset popup among partners based on the new circumstances and market situation. So, you must drive the partners with passion and purpose so that their vision will be attached to the same and will not change according to the situation.
The Ugly things about partnerships
These are some of the major issues that may lead to the collapse of the company ultimately, these issues are critical and may not be able to find solutions for them. So be careful about this and create clarity on the vision and your goal in the new business. Set expectations clearly before committing to anyone.
Loss of trust
Trust is something that takes so much time, but once it is lost it is lost forever, so always be careful in maintaining a trustworthy relationship between partners. The partnership is like marriage so trust is the foundation for it to work properly, if someone lost trust in your better to depart between them to make it not worse.
Loss of trust occurs when you tried to hide something from your partners, it may not be with a bad intention but ultimately it will end up in the loss of trust. Trust is something that is not built in a single day, so always try to be open and transparent in front of the partners, because everything can be solved but not the breach of trust.
There are many cases I saw breaks of the partnership due to personal preference of decision over a professional preference. This will create an imbalance in overall company growths when your decision for recruitments are based on personal preferences, chances are there for you to end up in an inefficient workforce.
The same is the case of everything in a business, every decision should be based on qualitative analysis and evaluation, this will gives you better efficiency, transparency and values towards the company’s culture.
Difference in opinion and conflicts
Difference in opinion comes when people start shifting their focus due to various reasons. This may leads to internal conflicts, fights and finally end up in breaking the relationship.
So always try to attach your goals with a purpose so that everybody can align to the same purpose whatsoever the situation is going on. People change their preferences and choices throughout their life, by seeing the competitors many partners use to change their strategy and goals in the middle which leads to serious conflicts among partners.
Try to be as transparent as possible, discuss about the purpose and your goals with everyone and constantly remind them about it. Avoid running behind the competitors because what worked for them may not always work for you.
So How to Partner?
Partnerships are like marriages, once you entered, you should stay forever, it is always important to set expectations and divide the roles and responsibilities equally among the partners.
“If you want to lift yourself up, lift up someone else.” – Booker T. Washington
Try to communicate regularly and create a transparent culture among your team members to earn a trust factor. Finally, it is the values and purpose that matter for a successful relationship.