Going into businesses with a significant other or colleague can be risky. Not only will the merit and integrity of the company itself be tested, but the strength and integrity of the partnership is tested every single day. Still starting a partnership with the right person has a lot of benefits. Splitting the multiple responsibilities of beginning a start-up, halving the financial risks, and pooling together the resources of both people involved are just a few advantages to starting a small business with a partner. But a small business won’t be successful if its partners don’t have the right chemistry.
Complimentary skills is one thing that most partnerships should have. While there are cases of start-ups with one talented partner and a silent partner that financially supports the other, this arrangement is not the type of partnership that is successful for most startups. In the case of a bakery, partner A may be the primary cook and promoter, while partner B handles the books and legal components. The partnership with the right balance of strengths and weaknesses is paramount to its future success.
Partners should also find and agree on ways to fund their small businesses. Many partnerships choose ach business loans (automated clearing house) to fund their businesses. Merchant funders like First American Merchant Funding (FAM) provide ach business loans that give companies access to fast cash with no need for tax returns, or financials required to receive funding.
Next communication between the partners is crucial. There should be a carefully crafted business plan and agreement to where the business should go. Honesty and openness about daily operations and issues are key to ensuring the business stays on track. Also, ensure that the personal ambitions or problems of each partner do not take away from the business itself if possible.
Hand in hand with open communication and agreement on goals, is a system to resolve conflict. Whenever two people are involved in a business, they are bound to have conflict. It is paramount that when conflict occurs, the partners address it immediately. Do not let it fester and grow, this will lead to hard feelings and perhaps major fallouts. The best thing to do is to discuss the issue with the other person immediately and if a solution cannot be reached, introduce an outside perspective to help mediate.
Profitable partnerships are possible with the right foundation and processes. Finding a partner with complementary skills, great communication, and mutual vision will lead to successful business behaviors and booming profits.
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