Entrepreneurs, especially new ones, often think that getting a partner who shares their vision and energy is the fastest way to grow a business. Unfortunately, they’re most often wrong.
It’s not because business partnerships can’t succeed. They can. However, partnerships that fail do so because they are set up to fail from the very beginning.
If you’re thinking of finding a business partner, or know someone who is, watch this brief video—before the partnership turns into a monster.
- If you decide to take on a business partner, follow these steps for greatest success:
- Create hierarchy and a clear division of power. No business partner should have the same amount of equity as any other.
- Consult with a contract attorney to put your agreement in writing.
- Create a clear division of roles on an organization chart.
- Schedule regular business partner meetings.
- Comment below and share your business partnership experiences or perspectives.
- Perspectives of partners often change once the business starts making significant money.
- Successful businesses need leadership. Uneven equity, although largely symbolic, helps establish that leadership.
- Division of responsibility creates clarity in the day-to-day workings of a partnership.
- Regardless of how busy you get, keeping to your partners’ meeting schedule is essential to your business partnership success.
- A coach or mediator can help ensure business partners meetings remain open, candid and honest.