Business partners often initially get together with great enthusiasm and vision. However, at some distance down the road, difficulties inevitably arise and conflicts emerge. How you handle adversity defines your success as a partnership. Here are some tips on how to maintain a strong business partnership.
Align Your Visions
Before business partners work together, they should be sure that they agree on the big picture. Sharing an ambitious vision for the future helps you navigate your way through obstacles and setbacks because you know that you are all working towards a common goal.
When you initiate your partnership, clearly delineate the roles that each of you will play in the running of the business. Be ready to redefine these responsibilities if later you realize that some tasks are not being properly taken care of. Your contributions may not always be equal. Some partners may be involved in the company in a full-time capacity, while others may be only financial supporters or advisers. Compensation should be based upon what each individual partner contributes to the business.
Establish a Decision-Making Process
In the beginning stages of your business partnership, establish a written agreement on how decisions will be made. Clearly delineate who should be involved in various levels of decisions. In the event of disagreements, specify when you should vote and who has the final word when you are deadlocked. For serious conflicts of interest, have plans in place for third-party arbitration by mediators. To cover the possibility that none of these solutions work, prepare a contingency for the dissolution of the business partnership.
Review Your Efforts
Periodically get together with your business partners and reassess the relationship. Analyze weak areas of your collaboration, and make changes to optimize your efforts. Identify and deal with any disagreements that might erupt into conflicts, and be sure to celebrate the progress you have made together.
For more advice on maintaining strength in business partnerships, get in touch with Bear River Financial.