by Kyla Camille Nievera, Negosentro |
Business partnerships are made by small business owners and young entrepreneurs who realize that having an objective view on the matter at hand is often better when it comes to developing a successful business. However, just because it might be better, it does not mean that it is certainly going to be. Business partnerships require a great deal of consideration, thought and planning in order to provide both sides with palpable benefits. That said, let’s go over five tips vital for developing a strong business partnership.
Pay close attention to partnership agreements
One of the biggest mistakes young business owners make is getting overly excited about a business idea and signing the partnership agreement without having a lawyer to review it. People have managed to lock themselves in place, without a real prospect of either accomplishing their goal or abandoning the project altogether and moving on simply by signing an agreement too quickly. The number of things that could go wrong is often higher than you might initially expect and that’s why it’s important to have a lawyer present to offer objective advice and provide adequate counsel regarding your business venture.
Set clear expectations
Both you and your partners need to have realistic expectations, not only from one another but also from the business you plan on conducting together. Your business partner cannot read your mind and neither can you read theirs. Clear expectations are set and met by having a clear line of communication between you and your partner. Be adamant in vocalizing your concerns, should you have any in order to avoid experiencing any misunderstandings in future and make sure you achieve a mutual agreement before setting up expectations.
Make sure that partnerships are mutually beneficial
This might sound like an obvious piece of advice, but it’s a lot more complicated than it seems. Far too often we see partnerships ending with only one side benefiting from the actual deal, while the other ends up regretting getting into the agreement in the first place. All business conducted between two partnering companies has to present an equal chance of success for both sides. This results in developing trust between companies and finding ideal partners to do business with. Not to mention that pulling a fast one on a partner will results in bad PR and end up costing you your entire business venture.
Respect for your partners
Respecting your partners is more than simply being nice whenever you’re in the same room doing business. Although it’s important to show respect when dealing with your partner, particularly before, after and during business meetings, make sure your partner has appropriate accommodations and provide them with the best chauffeur service Sydney has to offer during their visit. On the other hand, respect can also be measured during the contemplation and evaluation of your future business partner’s weaknesses. You have to decide what type of partnership would be best, so that both sides can benefit from it.
Know when to walk away
Like all relationships, business partnerships can have a great deal of potential in the beginning. However, that does not mean that every partnership will be a perfect one and sometimes it’s simply not going to work out in the long run. This is perfectly normal and understandable, and what makes a strong leader is knowing why, when and how to walk away from a business partnership. Ending a partnership and regrouping your efforts is a far better idea than being stuck in place by pushing something that’s clearly not working.
These are just some of the most important practices for building a successful business partnership. Make sure to focus on every single one of them with undivided attention in order to avoid getting you and your business trapped in a bad business agreement without any chance of walking away. Lawyer up before signing anything, let alone a business partnership. Make sure to treat your partners with respect and work hard on fulfilling your end of the deal.