Tag: business partnerships

Should You Start a Business with your Friend? | Getentrepreneurial

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Starting a business is an exciting, yet stressful, experience. Businesses are formed in many ways, some of which are joint ventures. These business partnerships can occur for a number of reasons, including a lack of skill sets, poor connections within the industry or not enough financial resources. Many times, the people who form a business partnerships already have a personal relationship, such as a friendship. Although this can be rewarding, it can also be challenging at times. Businesses built between friends are most successful when emotions do not get in the way, which is done by keeping business practices as impersonal as possible.

This article will explain some of those challenges and how to avoid many of them by planning ahead through successful business practices and reasoning. First and foremost, it is essential to make all decisions with the company’s best interests in mind. This can be done by establishing ground rules so that when a problem arises, common issues and negative outcomes can be avoided.

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Howdy Partner Part 2 | Peter Mehit

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partnershipsBecky, a consultant, was telling us about a proposal she made a few years ago. The project was big and she needed help so she partnered with company that she had worked with before. They agreed to work as one company to reduce customer concerns about managing multiple contractors. At deal time the partner broke ranks trying to make a separate agreement. The customer declined to work with either company.

Trouble in partnerships generally comes from three things: Poor due diligence by the partners, mismanaged expectations and lack of defined roles and responsibilities.

When picking another company to partner with, you need to decide if they are a good fit with you. For example, a firm that is fastidious about quality will be driven crazy by a sloppy partner. If the firms have different ideas about client relations, there can be mixed messages that cause trouble and false crisis. You’ve decided the partner firm is qualified and shares a compatible management approach, but you also want to check for a cultural fit. Are the work methods compatible? If your company likes slow, steady progress will you be able to work with one that pulls all nighters to deliver a last minute product?

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