Written by: Oriel Ross McKinney, Senior Level Executive Contributor
Executive Contributors at Brainz Magazine are handpicked and invited to contribute because of their knowledge and valuable insight within their area of expertise.
Partnerships are tricky. Even those of us who have not been in business partnerships can appreciate the delicate nature of this kind of relationship. Throughout my career, I've learned a great deal about the relationship dynamics, the balance needed, and the complementing skillsets that generate success.
Business partnerships can be highly successful when both parties are on the same page and have the same goals. However, many partnerships fail because of a lack of communication, unresolved conflict, or not having the proper documents in place. This article discusses the blueprint for a successful business partnership. I will cover why partnerships fail and how to prevent these failures from happening in your professional relationship. Plus, I will provide you with a list of documents you will need to make your partnership succeed. Why Do Business Partnerships Fail? Like any other relationship, a business partnership requires transparency. Unfortunately, many collaborations fail due to a lack of communication or unresolved conflict. A good business partner consistently articulates their goals with their co-founder about all aspects of running the business, especially when it comes to any issues and making major decisions that affect the company. To prevent any significant conflicts from happening, you must discuss and agree upon the following four things:
How you will make decisions within the partnership
How you will share profits and losses
What happens if one partner wants to leave the business
How you will resolve disagreements
With steady contact, you can avoid many struggles that may arise during the life of your partnership. How To Work Together With your business, it's vital to have regular interactions with your partner so that everyone is on the same page. This clarity will help prevent any misunderstandings from happening down the line. Here are some tips you can follow to ensure a healthy working relationship between partners. Have a clear chain of command It's important to establish who oversees what tasks and ensure everyone knows what they are responsible for doing each day. Establishing a chain of command will help avoid any confusion or conflict down the line. It will also help if someone is ever absent from work due to illness or vacation. Meet regularly Make sure to have regular meetings with your partner so that everyone is on the same page and knows what is happening within the company. Discussions should include updates on tasks, goals, and progress. Furthermore, meetings give everyone a chance to speak up about any issues that may be happening within their department or with other employees. Settle disputes quickly If a disagreement arises, address it as quickly as possible. This promptness will help prevent the conflict from escalating and causing any long-term damage to the partnership. When you make an effort to resolve disputes quickly and respectfully, you will be able to keep your business running smoothly. Resolving Conflict So, how does one resolve conflict with their business partner? Of course, the first step is to talk about it! The two of you will need to discuss the issue and how each side can work together toward a solution. If this does not solve the setback, it might be necessary for both parties involved to have an amicable resolution. If left unresolved, a minor disagreement could become a massive problem for both parties involved in the partnership. So, it's necessary to address any conflicts as quickly as possible before they escalate into something more serious such as lawsuits or even bankruptcy. Needed Documents You must have a document in place outlining how you will make decisions within your partnership. If you need help figuring out which documents you need, reach out to a business coach or business consultant to guide you. A few of the needed documents include:
Articles of Partnership ‒ This document will state the name of your partnership, how it will operate, and what its purpose is. As a contract, it will outline the rights and responsibilities of each partner. It also typically includes any provisions for dissolving the partnership.
Bylaws ‒ Bylaws are a document outlining when and how the business is run internally. It includes details about management structure, how you will make decisions within your partnership, and how you will share profits and losses.
Partnership Agreement ‒ This legal document is similar to a bylaw but is designed for partnerships. It covers how you will handle partnership funds, what to do if one partner wants to leave the business, and how to resolve disagreements.
Conclusion Having a well-organized and detailed plan is key for any successful business venture. And with a good business partnership, that plan is twice as strong. By following the tips and advice in this post, you can help ensure your organization runs smoothly without any major conflicts. If you need help growing your business, book a call today with our business coach and consultant, she can help you create a perfect plan for your business partnership.
Oriel Ross McKinney, Senior Level Executive Contributor Brainz Magazine
Oriel Ross McKinney is a renowned Business Strategist, Author, and Speaker. Known as The Small Biz Engine®, her experience includes a successful 20-year tenure in Business Strategy and Development, Finance, Non-Profit Management, and Entrepreneurship.
As the mastermind behind several success stories, brands, and businesses, she methodically assesses her projects and delivers profit-driven strategies again and again. Oriel hones in on business & socially conscious topics while unveiling success in a brilliant way. For those looking to transition from corporate workplaces to entrepreneurship, read her anchor chapter in the anthology, Soaring Beyond the 9 to 5, or tap into one of her signature F.U.E.L.® Academy courses.
On a personal level, Oriel's biggest challenge and gift are being a mom to two children who were born prematurely. In her spare time, she supports preemie babies and their families in any way she can. Her motto is “You’re your greatest asset; invest in yourself.”
