When smart and talented people come together for business partnerships, they leverage on combined capabilities, skills, and knowledge. As a result, partnerships stand a better chance of achieving business growth and success.
Unfortunately, business partnerships have been proven to be more difficult to manage than most marriages. There are various reasons why business partnerships fail, explains a business lawyer in Denver, Colorado. Here are a few.
Lack of a clear vision.
Successful partnerships are never just about making money. While money making is important, all partners must agree when it comes to values and life goal alignments. Their visions should align with the business vision. All partners must conform to the business vision before they join.
Too many cooks spoil the broth.
When partners do not suit each other’s skill sets, decision making will take longer, time will be wasted, resources depleted and the business will be doomed. Conflict will be constant and unavoidable. When forming partnerships, it’s critical that you sign the agreement with a partner who complements your skills and talents.
Lack of trust and transparency.
Issues such as intellectual property protection, a clear understanding of what each partner is offering and not offering, and expectations from each partner should be clear from the start. Failure to lay out these issues on the table for discussion may lead to conflict in any business. All partners should sit down and conduct a thorough audit of resources available, and how much they can commit.
As you hold the meeting, it’s essential to consult a Denver business lawyer on how to draw a written partnership agreement. The business agreement should include roles and responsibilities of each partner, compensation, exit clauses, who is investing what and how much, and when each partner receive their ROI.
Successful business partnerships provide advantages that you may not achieve on your own. However, it’s important you keep your eyes open for few hurdles that may make a partnership fail.