Virtually every successful business can trace its roots to a successful business partnership. It’s a testament to the value of teamwork in pursuit of accomplishing major goals. What’s more, it’s proof that people are most prosperous when they’re working together.
With that said, many business partnerships fail to fulfill their true potential. For a business partnership to be successful, it has to start on the right foot. Otherwise, the path forward is sure to be a series of stumbles and stops. The following are five valuable tips to keep in mind before forming a business partnership:
Familiarity comes first
Presumably, most people who form business partnerships do so with those they consider dependable and trustworthy. However, just because someone seems to have the right abilities and qualities doesn’t mean it’s true. Avoid becoming business partners with someone you haven’t gotten to know first. Doing so takes time, but it’s the best way to prevent getting financially mixed up with the wrong crowd.
Get it in writing
Business partnerships are not something to be based on handshakes alone. Get everything in writing in the form of contracts and notarized agreements. Furthermore, work together to address potential risks and hazards going forward. For instance, sit down and go over term life insurance quotes and find suitable policies to take out on each other. That way, if one business partner dies unexpectedly, the other is financially equipped to suspend the venture or shut it down without ending up in financial ruin.
Define roles and responsibilities
The value of teamwork and partnerships revolves around the assumption that different people are good at different things. They’re able to accomplish something as a group they can’t do on their own. Assuming such is the case between business partners, it’s imperative to define what each individual is responsible for when it comes to day-to-day operations. Avoid situations where one or more partners have overlapping duties unless joint responsibility is explicitly understood.
Schedule weekly meetings
Business partners must be on the same page as one another. While it’s generally understood that business meetings are an annoying waste of time, businesses still have them, which speaks volumes about their importance, especially among partners. Meeting with each other at least once a week helps ensure there aren’t any misunderstandings about where the company is headed.
Don’t forget to have fun
There’s a lot at stake when running a business. Despite the need to take things seriously, business partnerships are at their best when everyone remains genuinely excited and energized about what lies ahead. Business partners struggling to feel inspired should take some time off to avoid burnout, so consider establishing a culture of openness about these matters.
Great businesses often start as great partnerships. It makes sense, considering the greatest accomplishments in human history required a team effort to achieve. With that said, business partnerships don’t appear out of thin air. It takes careful planning and preparation. Ensuring your business partnership is on a solid foundation is key to seeing it lead to success.
