Most people have heard of the old saying “don’t put all your eggs in one basket” – that is, don’t put all the eggs in one business. This is because if it fails, you’re in a heap of trouble. However, the saying does not take into account business partnerships. A partnership may be the most stable way to begin a business, but there are a few things to watch out for so that it will survive.
Being a business owner is one of the toughest jobs in the world. Good business owners are able to start and run a successful business, while bad ones go bankrupt or just stop working. But why do some fail while others succeed? You can do a number of things to ensure the success of your business – from choosing reliable employees and partners by properly evaluating their skillset, conducting necessary employee verification (see the website of Checkr to know more) to avoid any instances of compromising company reputation to staying current in terms of automation and technology. However, there are many reasons that business partnerships fail, but it is important to know which ones are the most important.
• Lack of Communication
It has got to the point where companies cannot get partners to communicate. They expect you to be an expert or be able to provide the right solution for their needs. Or, if they have no idea what you need, they tell you they will get back to you when they never do. Last week, we featured a post from the “World’s Worst Bosses” blog. In this post, one of the bosses revealed his personal feelings about his business partner, the CEO. It was an awkward conversation, to say the least. This week we feature another post from the blog, which discussed the lack of communication between business partners. Many of us have had the experience of wanting to tell our business partners something. As an example, some of us might have wanted to streamline the workflow using technology (like job management software for tradesmen) contrary to our partner’s view (which may be one of doing everything manually). But we might not have got the opportunity or words to tell them because of the potential chances of misunderstanding. However, this is one of the many examples of lack of communication.
There is more on the list. For example, the case discussed in this post centered on a project manager who wished to bring up a concern with his boss. He was so surprised when he discovered his boss did not know about the issue he was going to bring up. And in the end, the boss still did not find out.
• Different Vision
Two heads are better than one, and two heads are indeed better than one when it comes to business partnerships. But, as any business owner can tell you, sometimes it’s difficult to find a business partner, but equally difficult to have a partner who is a real asset to your business. There’s a reason why it’s so important for business owners to understand their own business and why they should always work with a partner who has a shared vision, and that’s to ensure that both parties are on the same page. Note the words “on the same page”. It is crucial that partners agree on decisions, otherwise, it might be a blunder. How, you ask? Consider the below-mentioned scenario for better understanding. Assume you want to further grow your business with the help of technology. Perhaps you are interested in growing relationships with your customers by using digital signage solutions offered by Atmosphere and similar companies. However, your partner does not seem to agree with the idea as he might not have the same vision as you have. So while you can understand the potential benefits of using digital signage solutions, your partner may not. This could further lead to a clash of conflicts, which might further increase the chances of misunderstanding.
• Lack of Transparency
Business partners help each other succeed by working together. Unfortunately, the trust and benefits that come with working together often stop short of the actual business partnership. If the business isn’t transparent about its goals, products, and services, business partners may be kept in the dark and ultimately unable to achieve the benefits of the partnership. The lack of transparency can lead to business partners pursuing their own agendas at the expense of the partnership, which can be damaging to both business partners. It might be worthwhile to use PRM software to prevent such an occurrence. If you have not yet implemented this technology in your business, it may be wise to find the best PRM software on the market to ensure that all processes are transparent.
• No Defined Roles
“When you work as a business partner (partnering with another business, company, or person), there are certain things that need to be established first. These may be one of the most important things to consider when deciding whether to partner with another business.
As a partner, you will be sharing responsibility and authority for your business. For this reason, it is important to establish what each party will share and what each party will do as part of the agreement. If there is no defined role for each partner, then there will be no clear idea of which partner is responsible for which area of the business.
A lack of clear roles can lead to confusion and difficulty in working together and can also make the other.
• Difference in Contribution
Business partnerships are a great way to grow and develop a business. They can be as simple as two people working together or as complex as a board of directors for an organization. However, this doesn’t always work out as planned. According to Ascend2, “There are many tensions and problems that arise in a business partnership.”
