Many of today's iconic companies were founded by pairs. And investors prefer to invest in teams. But it is also well known that many high-potential startups fail because the co-founders can't get along.
Often, the most successful teams are made up of people who have worked together in the past. But imagine if you have an exceptionally brilliant idea and want to start a business. To whom do you readily turn? Choosing the right partner is not rocket science, as there are a number of good examples to follow because many successful business partnerships share similar key characteristics.
We have outlined key points to look out for in finding the perfect business partner.
There is a trust continuum. A partnership may fail due to mistrust, which is extremely difficult to overcome. True trust develops gradually. You are therefore on the right track if you feel your trust level growing.
The standards for what is desirable, undesirable, good, and bad are typically shared by successful partners. These principles direct their decisions, judgments, and actions. Your values shape both your personal and professional identities, which means that they are often highly emotional. Partners are more likely to make consistent decisions and stay together when their values are in line (for example, when they share a sense of commitment to family, prosperity, ambition, work ethic, or political persuasion).
A company's vision reveals its aspirations for the future. When partners have divergent visions, it is easier for them to become demoralised, overburdened, and disconnected. For a shared vision to be made and work, four things must be done: the initial vision must be made; the vision must then be It must be turned into a set of actions, explained and sold to others, and kept going even when things don't go as planned.
Skills and Traits
Different (complementary) skills and traits are required for successful partnerships. The division of their labour (and power) can be more clearly defined the more diverse the partners' skill sets are. Major skillsets needed in every business include: Entrepreneur-the creative visionary; Manager-the administrator who brings planning, order, and predictability; and Technician-the craftsperson. These skills are needed to be shared by partners going into business.
Each partner in a successful partnership feels that their rewards are either equal to or greater than their contributions. This sense of fairness can be maintained among people who don't know each other very well by keeping track of the benefits they trade. However, in long-term and more committed relationships, keeping track may appear unhealthy. Instead, each partner should have that sense of equity, knowing that some days s/he is giving and some days getting. They must have a sense of commitment regardless of the bad days in the journey.
Conflict Management Skills
When people are close to each other, competing and avoiding are not good ways to deal with conflict. (Use those strategies only when no on-going relationship exists.) Instead, successful partners will use proactive and strategic ways to deal with their differences, such as accommodation, compromise, and working together.
It’s often said that a graceful exit is proof of a successful venture. If partners don't have a plan for how to leave the business, they may have to make important decisions when they aren't thinking straight. An exit strategy is a shared sense of when and how an alliance will end. A written exit strategy should be included in every business plan. Even though planning for the future is an important part of running a business, it is also one of the most overlooked. An exit is easy to avoid when the issue is not pressing, and raising it might sour the deal or suggest a lack of trust. An exit plan should answer four questions: what events might trigger an end to the partnership; how will the business be valued at the end; which options for future ownership are acceptable; and what post-alliance ties and restrictions, such as non-compete clauses, need to be included.
Having the right partners allows you to create results that would otherwise be unattainable. If you use these eight tips to choose your next business partner, you'll have a better chance of making a partnership that is stronger than the sum of its parts.