July 4, 2018
Maintaining A Strong Business Partnership
When you enter into business with another person as a partner or in a joint leadership role, the quality of your relationship can have a huge impact on the success of your business. Without a positive relationship with the right qualities, things can easily fall apart quickly. When things go wrong in a business partnership, the consequences can be both financially and emotionally disastrous. That’s why it’s important to put real effort into maintaining this delicate partnership.
Get legal support from the start.
Even if you’ve been close friends for years, it’s essential to have a solid contract in place when you start your business together. The nature of your relationship has now changed, and you both need to be protected from a legal and financial standpoint when it comes to your business. Put emotions to the side and meet with a business lawyer sydney so you can make sure your contracts and partnership agreements are off to a great start.
Have a plan in advance for tackling conflict resolution.
It’s important to expect that conflicts will arise at some point along the process of this business partnership. If you have a plan in place for how you’re going to deal with these moments, you’re less likely to allow emotion to rule once the conflict does take place. Make a decision for how you’re going to deal with the situation if you’re not able to come to a resolution or compromise after a certain amount of time spent debating.
Look into mediation options.
If these conflicts do arise and your plans to manage them seem to have fallen apart despite your best intentions, then a professional business mediator can be a useful third party to turn to. They can step in, hear both sides of the situation, and prevent the situation from escalating into a legal mess or personal relationship crisis.
Know that you want.
For a business partnership to work, you need to have a specific vision for the future of your business that you share from the start. If each party has their own individual idea of where the enterprise is headed that looks quite different to the other partner’s vision, you’re already setting yourself up for disaster. Have conversations about your ambitions for the business, your ideas for the future, and the types of values you want your company to hold as an entity.
Know who will do what.
Many conflicts in business partnership relationships come from a misunderstanding of what each partner is expected to do for the business; both on a daily basis and in terms of the bigger picture. Make sure you’ve made an agreement (preferably in writing and with legal confirmation) about what each partner’s role is in the business and what the expectations of their role will be.
Review your plans regularly.
Creating a business plan is one important starting step, but reviewing your plans and progress regularly will help keep things on track and give you an idea or what needs to be improved upon or adjusted to move forward. You can also use this time to review how the partnership is working so far, and to address any issues that may have come up in the previous quarter in the relationship.