Sadly, the stats for business partnerships are in line with those of marriages: 50 percent of them fail. But there are many benefits to having a partner – they can complement your skills and strengths, they’re another brain working on solutions to problems, and they can help you rally when you feel overwhelmed.
So, how can you avoid disaster? By knowing the common reasons that business partnerships fail, you can help you ensure yours doesn’t. Whether you’re in a partnership now or considering taking one on, read up on what you can do to boost success.
Undefined Roles Obviously you and your partner have a good idea of who will handle what, but without specific duties outlined ahead of time (certainly before a messy situation comes up), you can quickly run into frustration, confusion and trouble. So put together a list ahead of time and plan to meet regularly to update each other on what each is working on.
Different Goals There should be no mistake about what the long-term goals are for the company. Most partners are in the know on short-term goals, but if each is operating with a different set of long-term goals, it won’t be long before problems mount.
No Exit Plan Make sure there is a legal document that outlines what will happen if a partner wants out of the business. This also includes what should happen if one partner dies. You don’t want to end up tethered to one of your partner’s family members who is uneducated in the business.
Source:
Open Small Business Forum: 4 Fatal Mistakes Entrepreneurs Make When Taking on a Partner
