#TheHandshake: Business Partnerships, Should you? Or Should You Not?
Indeed, you don’t have to walk the steep road of running a business alone, but things could get real nasty if you take that walk with the wrong person. You have to realise that sometimes going faster and farther may mean going with someone, because even the good book is particular about one chasing a thousand and two chasing ten thousand.
Your bigger brands understand the power in synergy, of understanding that 1+1 yields 10 not 2 in partnership arithmetic, and that going it alone rather than partnering might make you sweat it out too hard, especially when you can expend that energy building for your customers, rather than innovation around a solution that already exists. The crux of this is the reason why we have a tonne of undifferentiated businesses who would rather run alone than collaborate to capture better value for the market.
However, not everyone who proposes a partnership to you is the right person for your business. As a small business owner, you might be asking, “Do I really need a partner to run a successful business?” The truth is, there is no single answer to this question because every startup is unique and has different needs and requirements for sustainability.
Partnership in this context is a legal form of business operation between two or more individuals who manage, share similar goals and visions for a business, as well as its profit and risk. Before you go into a partnership with someone, you must be absolutely certain that your business needs them.
To truly determine if you need a partner, here are a few questions to ask yourself and your response will guide your decision- Am I ready to be open with someone else about my business and all that concerns it? Can my business thrive without a partner? What are my strengths and what responsibility will I be needing the other person to take up? What do I consider as a successful or failed partnership? If things get out of proportion, will I be willing to let go and move on? What percentage of the business am I willing to give out? These are just a few questions you should ask yourself before saying yes to a partnership.
Check Out: When To Take A Bow: Does Your Small Business Have An Exit Strategy?
It is important to know that no one is an island and you need people to survive, especially in business environments. In some cases, you need a team of committed employees or investors and not necessarily a partner, so don’t get it all mixed up. If you have decided that partnership is the way forward for your venture, let’s talk about serious things to take note of when choosing an ideal partner.
1. Friendships don’t lead to lasting partnerships
There should be a clear line between business and friendship. It is only natural for your friend’s name to pop up in your mind when you are in search of a business partner. Save your business and friendship by not getting them involved in any way if they are not the best fit for your growing business. This is why we advise that in choosing partners, you must be ready to select people whose goals, visions, priorities, and values align with yours. They may be total strangers but must be able to prove their loyalty and reliability through their actions, words and body language; you might want to read about how the Co-founder of Wii Create found his partner on social media and they came together to start the brand. Your partner could be found in the most unlikely places- but be careful to avoid painful tales as these days, it’s difficult to trust people.
As you build a relationship with someone, both of you must be open about your activities without being reluctant to speak about your thoughts, fears, victories, challenges, and downtimes. Communication is very important; never assume they know what you are thinking or feeling.
Have A Good Read: Ease The Stress. Use These Apps for Your Small Business Accounting.
2. Complement Rather Than Duplicate
It would be a sheer waste of effort to choose a person who has the same set of skills or strengths as you do. You are not looking for a replacement or duplication of yourself, instead, you need someone who has what your business needs but you can’t provide. Let’s take Triift Africa as a case study, our micro-enterprise is co-founded by Yemisi Ajeojo and Charles Isidi who play different roles in ensuring the smooth running of the business. While Yemisi is in-charge of operations and finance, Charles takes responsibility for Strategy and Content; in this way, they get to play different vital roles without any form of duplication. In partnership, it is important to always remember that the success of one is intertwined with the success of the other- it is a collaborative effort.
You should read: “Gut’s all we got.” Why We Started Triift Africa
3. Diverse ViewPoint but Shared Value
It is preferable to work with someone who can think and come up with their own set of ideas or opinions- however, they must be in line with the ultimate goal of your business. Their values and priorities must be closely related to yours else you both are bound to experience problems.
4. Invest in Trust
While they are interested in partnering with you, it is brilliant to also offer them something in return, to show that you value them and their decision to come on board. Partnerships shouldn’t only be about what you stand to gain from working with them but also what they will gain in the end. It shouldn’t always be all about you!
Watch Dan Lok share his experience with 3 different partners who taught him major business lessons.
https://www.youtube.com/watch?v=6ZAeREc0gUM
5. Get A Partnership Agreement
Save yourself by running far from anyone who wants to do business with you but refuses to get the whole process documented. Your business deals shouldn’t just be closed with a handshake but with written documentation and legal backing if possible. This way, both of you can write down what you owe each other as partners, your input in the business, output, profit-sharing percentage and exit policy. Having a documented contract in the presence of a legal practitioner reduces risks, threats and helps to dissolve the partnership if it is no longer required.
Remember, it is not always about the other person, you must assess yourself regularly and ensure that people find it easy to work with you. Also, be confident to walk out of a partnership when you begin to feel like things aren’t going to work out between both of you due to lack of proper communication, distrust, incompatibility or any other reason.
Have you tried a partnership before? What was your experience and what did the process teach you? We would love to hear your partnership stories.
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