Business partnerships can either be a big success or a big failure. If your relationship with your business partner is a harmonious one, you can expect a big profit and success of the company. On the other hand, if you do not get along well with your business partner, the business may suffer and you will have to face the consequences. If you are planning to go into a business with a partner, make sure that you have the same goal for your business so that you won’t have any problems in the future.
Here are some tips on how you can create a winning business partnership with your partner:
- Vision. To start a good business relationship, you and your partner must have the same vision for the business. If you are in agreement on the vision, then there is a big possibility that you are creating a good relationship with your partner. Make sure that you have the same goals for the company. You both must agree with the major decisions that you have to make for the good of the business. Talk about the general things you want for the business and then -
- Define clear business roles. In order for your business to be a success and provide good product or service to clients, you have to take advantage of both your strengths. If you are good in one aspect of the business, take charge and tell your partner that you can handle that particular part of the business. If your partner is better than you in another aspect, let him take charge of that portion of the business. By doing this, you will feed off each other’s strengths and this in turn will result in a better business partnership.
- Make a business partnership agreement. An oral agreement between partners is not enough. Some of the things you should agree upon with your partner are how the profits of the business will be split, the distribution of assets, expenditure of the company, the length of the partnership and the amounts invested by each party. The things that should be discussed on the partnership agreement do not have to be limited to these. By creating a business partnership agreement, you will be able to avoid any future disputes you may have with your partner.
- Have meetings. Some business partners make the mistake of not having weekly or monthly meetings with their partners. Meetings with your partner are essential in improving the business partnership. You can talk about the improvements in the business, consult each other with important decisions that have to be made and also assess the overall performance of the company.
- Avoid splitting 50/50. Doing a 50/50 split for the company usually results in the downfall of the business. As much as possible, avoid splitting duties, profits and investments 50/50. 50/50 splits for business result in problems for the partners when it comes to disagreements in making big decisions for the business. The best solution is the one with the higher power makes the decision.
These are some of the tips you can keep in mind when you want to create a winning business partnership for your company. It is essential to establish a winning business partnership from the start so that you can avoid having problems in the future.