A business partnership is a contract among the partners of a firm wherein the terms and conditions of the partnership are clearly stated including the profit-loss sharing ratio, liabilities, assets, investment etc. (Source: Entrepreneur)
It is like a marriage – some may bring you happiness through success and some may not even see their happily ever after. Business partnerships can come in the form of long-term legal commitment or short-term venture to test certain market concepts.
In today’s article, we look at the tips you can follow for a successful business partnership.
1. Setting your Framework – Vision, Mission & Goals
In a partnership, partners must ensure that they have a framework of their business plan before laying down any other guidelines and in their business plan, the first thing to think about is the shared vision, mission and goals for the company. This is essential because you want to have a common direction to work towards to. For goals, each partner can create goals for the company and goals from themselves as individuals. Individual goals should support the company goals and should measure and support expectations. After all is set and written down, partners have to review and update your company goals together periodically (e.g. every 4-6 months/ annually). (Source: Business Know-how)
2. Having Proper Communication
“Communication – the human connection – is the key to personal and career success”, said Paul J. Meyer. With a clear communication channel between partners before assigning the partnership deed and while running the business is one of the most significant part of the business partnership. Each partner may have their own reasons for being in the partnership – for capital, expertise or connections. When these are not expressed accurately, it may be seen as an underlying expectation and can cause the relationship to become strained if not handled well. The power of dialogue is immense and therefore it is imperative that partners resort to this form of communication to iron out creases in the day-to-day functioning of the firm. Sudhanshu Sinhal, an EdTech entrepreneur and managing director of Sinhal Classes Pvt. Ltd. says, “Many fall-outs in business partners happen because of different value systems. Thus it is imperative that one takes time to know their prospective partners by having meaningful conversations.” (Source: Entrepreneur)
3. Handle bad situations early – disagreements, disappointments and frustrations.
As in any type of partnership or relationships, bad situations will bound to happen. It is how you handle these bad situations such as disagreements, disappointments and frustrations that will determine whether the partnership will be in good order. Partners should not let bad feelings build over time and make it a rule that each can approach the other when something needs to be addressed. Sometimes it can be difficult to approach a partner after a bad argument or when the long standing relationship has deteriorated. Thus, partners can initiate a regularly scheduled meeting such as once a week or once a month to come together with their agenda for the business. By presenting a plan for change, everyone will have something to work with and respond to. (Source: Business Know-how)
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