You may have a friend who used to be in a business partnership. If you ask them what they learned, chances are they will say they learned never to go into a partnership again.
Most business partnerships do not work out
Some reports suggest 80% of business partnerships are doomed to failure. If you want to increase the odds of yours surviving, you need to learn from what others got wrong:
- Choosing the wrong partner: Finding someone to go into business with is challenging. Your money depends, in part, on them. Make sure you complement each other and analyze why you would and would not work well with someone. Great friends often make lousy business partners.
- Not communicating: Communication is essential, even when things are going well. It can be easy to make assumptions about how the other person is feeling or thinking. You need to hold each other accountable to avoid essential matters falling into the gaps. Regular communication helps you stay realistic about the current situation. It helps you plan for the future.
- Involving others in a dispute: If you spend your life at work, it is natural to share thoughts with the people around you. That could be employees, clients or suppliers. If you need to vent frustrations about your partner, say it to their face, or talk to someone unrelated to your business. Otherwise, they will find out you have been talking about them behind their back. It could lead to an irrevocable breakdown in trust.
A business partnership may not work out as you hoped. Get help to create a solid legal basis for working together. It reduces the chance you need legal help later to resolve problems or end the relationship.