How To Manage A Business Partner
by Anastasia Bennett, TwoBrain Mentor (NZ)
Many of us have been there, right? You have a great idea that you share with your friend one night over a couple of drinks. They have an idea that’s even better and suddenly you find yourselves talking about creating a business together. It’s exciting, but what does it take to become a good business partner? We all know the old adage “Two brains are better than one”, but no one talks about two personalities, two sets of needs, or the relationship you need to have to get into the business bed with someone. So, how do you manage a business partner? Short answer: you don’t. But here’s what you can do.
Vision
First, there are a few questions you need to ask yourself. Do you complement each other? In other words, does your business partner have your weaknesses as their strengths? If you are both terrible at finishing tasks then they might not be the right partner for you.
Do you get along well? It’s important that you connect on a few different levels so that you’re able to communicate effectively with each other.
What will each of you bring to the table? Do your offerings balance and align with what your partner is offering? Do you share the same vision for your business? Similar values? If you’re not both invested in the same idea and direction it might be time to pause and think about whether you really want to be in business with each other. Don’t worry – it’s not all bad news!
Communication
As mentioned before, communicating with your partner is essential to the successful running of your business. What makes the difference is your approach. You need to make sure that you communicate well with each other and are open about your expectations without being scared to express your needs and opinions.
Roles and Responsibilities
Before you finalise everything and create the business and draw up an agreement, it’s important to discuss roles and responsibilities. These may change over time, but having a plan to start with is always a good idea.
Identify your strengths and weaknesses and what you would like to be doing within the business. Discuss it with your partner – do they agree? Do you agree with their ideas? Brainstorm potential issues and try to come up with solutions in advance. This will make everything run more smoothly.
Decide who is going to be responsible for operations, finance, creative, or any other roles that might come with your business place. Again, it’s important that you each agree on who will take those roles. Remember to listen and consider each other’s opinions, suggestions, and decisions.
By identifying roles, you will see gaps (or weaknesses) in your business plan and this is a great opportunity for you to fill that gap with someone who can help grow your business according to your vision.
Once you’ve agreed on roles and responsibilities you can work on a shareholder or partnership agreement. Make sure you get legal advice. Sometimes things don’t work out the way we planned; it’s ok to walk away on good terms, so make sure you have a buy-out plan ready for óne day’ when either of you wants to part ways.
Get a mentor
It’s always a great idea to get someone else’s perspective on your ideas and your business. My husband and I were trying to navigate roles in our marriage and business. We were both trying to be in charge which just didn’t work and it was causing stress in our marriage so we reached out to a business mentor to help us. Newsflash: business partnerships are like a(nother) marriage!
A mentor can stop you from blaming each other if something doesn’t work out. They will hold you accountable to your actions and can give you honest advice without the burden of having an emotional connection to your business. More news: your business will be your favorite (and least favorite) child.
I have had several partnerships. Some of them worked perfectly, and others didn’t work at all. I learned lessons from each of them.
Partnership is not for everyone, but if you approach it logically and seek help, advice, and mentorship, you can save yourself from making mistakes early on and create a successful and fulfilling business.
“Teamwork is the ability to work together toward a common vision. The ability to direct individual accomplishments toward organizational objectives. It is the fuel that allows common people to attain uncommon results.”- Andrew Carnegie
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