4 WAYS TO MAKE YOUR BUSINESS PARTNERSHIP WORK

Like romantic relationships, business relationships can either be blissful or hell on

earth. But how will you know if you’ve met your Mr. or Mrs. Right?

1. Values and Vision

The right business partner shares the same values and vision as you. Values are not
likes and dislikes. Check if you and your business-partner-to-be have the same or at
least similar ethics, morals, and beliefs.

If you believe that everything should done above board but your partner is something
of a criminal mastermind, you’re headed for a conflict-riddled partnership, or worse, jail
time.

You must also both see the business the same way. If your partner wants nothing more
than a Mom-and-Pop shop but you so badly want to run the rat race and be a fat
cat, you’re probably not compatible.
2. Who does what?

The reason most partnerships fail is that there are no clearly defined roles. If both
partners do the same thing, this is likely to lead to fights. You can’t both be CEO. To
avoid lovers’ quarrels, one has to lead and the other has to follow in certain areas. If the
partnership capitalizes on each partner’s strengths, then unnecessary litigation can be
avoided. Speaking of which…

3. Lawyer up

Don’t just have verbal agreements, get a lawyer to help you draw up a watertight
contract that can stand up in court. You don’t know what the future holds. Things
change. Your partner might change, you might change. Just so everyone sleeps better
at night, there must be a solid contract that future-proofs the partnership.

4. How to kiss and say goodbye

Not everyone’s like Warren Buffet and Charlie Munger. In fact most business
partnerships will end the same way as most Hollywood marriages, and yours could be
one of them. If you can’t kiss and make up, what then?

As part of your contract, agree on an exit strategy. Included in the contract should be
what to do should things not work out, such as:

1. Selling your stake to the other partner

2. Training a third party to replace the one partner
3. Dissolving the partnership altogether