Often, when I mention partnerships in a speech, people recoil. I hear “I will never go into another partnership again.”
But partnerships can be wildly profitable. A great, working, partnership brings together different skills and helps accelerate the business to a higher level. We have seen businesses owned by two or three owners in the private sector, and we have seen mega companies formed by partnerships. Microsoft, Apple, and Google are examples of partnerships, that have this combination of skills.
From the beginning, partnerships need to be done right to lead to their long-term success. Most of this comes down to planning. In The 3 Laws of Empowerment, www.yourbusinessspeaker.com, I talk about preparing, planning, and protecting. From the start, prepare yourself, and make a plan that works. Involve other partners, making sure they understand all the various aspects of the business. Make sure that each one understands what their visions are and that they share the same ones. It is important to talk about reality and things that can and will happen. The four Ds. Death, disability, divorce, and disagreement.
If these difficult conversations can be had upfront, the partners can lay a path for success. They can make sure that they are going to go forward, and do the things they need to do with their business. Communicating, sharing visions, and working through problems in the beginning will make a stronger business plan, a stronger partnership.
If you are thinking about a partnership, if you know somebody that you have a unique chemistry with, someone you can create value with, don’t run away. Consider it as an option, but make sure you are doing the right planning.
Discuss the difficult things up front, talk about what the future of the business is going to be, and how problems are going to be dealt with. If you face reality sooner than later, you may be able to build that next successful partnership.
What has been your experience with forming new partnerships? Are you open to forming another one? Join us in the comments below.
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This posting is intended to be a tool to familiarize readers with some of the issues discussed herein. This is not meant to be a comprehensive discussion and additional details should be discussed with your attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances. Each case is unique. Past results do not guarantee future outcomes. This article should not be treated as legal advice to any person or entity. Freeimages.com/photographer Toni Mihailov.
About the Author
R. Shawn McBride is the Chief Innovation Officer at McBride For Business, LLC. His signature keynote, The 3 Laws of Empowerment, gives audiences an entertaining look at how they can prepare, plan and protect themselves. You can email R. Shawn McBride or (214) 418-0258.