Business partnerships are like marriages. A good number of them don’t end up well. The good thing is that you can use a few tips here and there to make your small business partnership thrive.
This guide contains some of the things you need to understand about how to manage business partnerships without any problem. Be sure to take every point.
Come up with Shared Mission and Vision
Before you go far with your partnership deal, you need to touch bases with your partner. As you make the first step, you should have a clear definition of the mission and vision of your partnership. This should be done in the initial stages of the business.
Unless your brains go in the same direction at the same speed, problems are likely to arise soon. Each partner may be having a different motive, which is okay. But now that you are trying to work as partners, you are supposed to have the same methods and objectives.
Take as much time as you wish to discuss the mission and vision of your company. You also need to define the objectives you will use to achieve your business goals.
Stay Transparent
There is no way your partnership will thrive if you are not going to be transparent with your partner at all times. Therefore, you need to kick off your business by encouraging transparency and open communication at all times. With transparency comes honesty and commitment to meet the goals of the company.
If you have any weaknesses, you need to be open about them. It is imperative to speak openly about your strengths. For instance, if a partner is to deliver sales, they need to provide enough information about the company and the industry.
Unless they share enough information, the chances of closing the deal will be slim. If a partner receives good results from your effort, they will develop trust in all processes undertaken in the company.
Go for Complementary Skills
Many people feel that they need people with whom they share the same skills. There is nothing wrong with that. However, if you want to succeed much faster, you should have different strengths. That way, you will complement one another.
For instance, if you are a shy tech expert, but would wish to start an internet business, you need someone good at driving sales. There is no way you are going to drive sales if you are a shy person. You won’t be able to talk to clients with confidence. Having complementary skills also mean partners will fall in love with what they do.
Get an Outsider’s Perspective
Since you start small, you won’t have a board of directors. However, you will still need to get that outsider’s viewpoint. Those are the people who can see some of the things you might have forgotten to consider when designing your business.
To do that, it is vital to provide a monthly presentation of your business goals and challenges. Do this in front of two or three business professionals and they will help you stay in the right direction. Also, when you present to mentors, you will avoid blaming each other.
If you find it hard to price your products or services, try to seek help from an experienced person who is not a member of the partnership.
Solve Problems Ahead of Time
As you begin your partnership contract, you need to come up with a clear business plan. As founders, you need to sit down and list down possible challenges and come up with the best solutions in advance. That way, in the future, you will flow without taking too much time to iron out available issues.
You must never forget to talk about when the partners will receive their payments. Discuss various strategies you will use to grow your business. For example, a given partner might be willing to keep the profits, while another might be interested in re-investing them to scale.
Closing Thoughts
Partnerships are great. Different people come together and use their skills to start and grow a business. But before you can scale, it is important to know how to manage the partnership. The tips in this guide will help you move in the right direction. If you run into challenges, seek help from mentors and they will help you make critical decisions.
