A business partnership is very appealing to anyone who is planning to create their own company. There are many advantages: shared cost and responsibility, access to a broader range of expertise, and moral support. Despite these benefits, few business partnerships succeed, even those between best friends and families.
Nowadays, the internet, low cost, lots of opportunities, and convenient e-commerce platforms have made it easier for anyone to launch their own business. However, there will always be risks or the possibility of failure. A business partnership can mitigate both, but first, you need to make sure your relationship survives these five struggles.
Conflicting Goals and Values
Goals and values are on top of the list of things that business partners should have in common; otherwise, there will be numerous disagreements between the partners. Goals will dictate a person’s motivations, and values will determine how people work for their objectives.
For instance, if one partner’s goal is to work toward growing the business on a large scale while the other is satisfied with staying small, this will create rifts between the two. One person may be taking more responsibilities while the other isn’t pulling their weight.
Not all your goals and values have to align. Diversity is also vital for lasting partnerships, but you should share the same vision, mission, and core values for your company.
Differing Levels of Commitment
Commitment is another thing that partners should have equal measures. Starting a business may be easier now with technological innovations and better accessibility to opportunities, but success is not guaranteed. Hence, it takes a lot of commitment to start something from scratch and continue working despite the challenges faced by business start-ups.
The level of commitment also determines a person’s dedication and willingness to sacrifice their time, energy, and money to achieve their goals. From the very start, partners should talk about their commitment to seeing the business through to avoid specific conflicts in the future.
Money can be the root of many conflicts between many partnerships, personal or professional. When partnering up with someone, both of you should be clear about how much money each one will give in the business and how to divide equity later.
Partners who don’t divide financial responsibilities equally will almost always have disagreements about money later. One side may feel entitled to receive a bigger share of the profit after investing more money while the other may think they’ve seen the difference through labor. Whatever the case, it’s best to discuss financial matters at length and hire an experienced attorney to draft a partnership agreement.
Contrasting Management Styles
This may not be an issue until the business starts growing and hiring more people. However, different management styles can cause severe clashes between business partners. One party may adopt the autocratic style, making decisions with little to no input from subordinates, while the other prefers a laissez-faire method, giving the employee reins over the majority of decisions.
The differences in styles may balance each other in the beginning, but the equilibrium may not last long. The autocratic boss may find the other too casual and indecisive while the laissez-faire leader may get stifled and intimidated by all the rules and assertiveness of the other.
Each management style will always have its pros and cons, so partners shouldn’t be so set on one method. Management styles should be determined and discussed by the partners to establish a balance. Setting rules and regulations early on can also help both partners stay objective when their management styles clash.
Lack of Trust between Partners
Trust is the foundation of a partnership. Without mutual trust, two individuals planning to start a business won’t be able to cooperate with each other. Entering into business has a lot of risks, and partners should trust each other to weather the storms without breaking up the partnership.
Having confidence in your partner and vice versa can also lessen disagreements or tensions between you two. If you and your partner don’t see eye to eye on some issues, you can talk it out calmly and reach a consensus without causing a crack on your partnership.
A partnership may be the best thing to happen to your business goal, or it could be the worst. Many business partnerships have not stood the test of time, mainly due to conflicts and differences. But don’t let the difficulties stop you.
History has proven that business partnerships can last a lifetime and generations later. Look at Ben Cohen and Jerry Greenfield, Baskin-Robbins, Hewlett-Packard, and other successful business partnerships.
6 Unexpected Security Concerns, and How to Prepare
As powerful as the Internet is right now, it’s impossible to even imagine where it will go over the next years and beyond. But, as fast as security protection continues to improve, hackers seem to improve even more quickly. Everything from new devices to apps…
Your Business Needs These 13 Digital Security Solutions – Here’s How To Get The Most Out Of Each
How would you characterize your organization’s digital security posture? If you’re not sure how to answer this question, or perhaps would prefer not to answer it at all, you’re not alone. Countless decision-makers, from uber-competent CTOs and CISOs to CEOs and COOs who couldn’t code…
Louisiana And Oklahoma Introduce Digital Identification To Prevent Fake ID Use
Digital ID in Louisiana Utilizing digital IDs has been a commonly broached topic for a while now. Although most states are only either deliberating their helpfulness or in the utmost initial stages, Louisiana has moved forward. The primary introduction of this technology was done back…
ScanGuard Review – Here is What You Should Know
Doesn’t it sound good and satisfying to have a goop-performing antivirus that is reliable enough? Yes, it is. For that reason, you need to be extra careful when you are in search of a good antivirus. Put all the necessary factors into consideration so that…
The Emerging Need for Social Media Security
By the time you’ve finished reading this sentence, nearly 700 passwords have been stolen from social media accounts across the world. Social media security breaches have the potential to cause up to $6 trillion in cybercrime damages by 2021, up from $3 billion in costs…
- 3D Printing
- App Dev
- Artificial Intelligence
- Arts and Entertainment
- Big Data
- Blockchain Tech
- Business Technology
- Car Technology
- Cloud Computing
- Cloud Storage
- Computer and Technology
- Conference Calling
- Coupons and Deals
- Cyber Security
- Dark Left 1
- Data Center
- Data Recovery
- Digital Arena
- Digital Marketing
- Edu Tech
- Email Marketing
- Google Glass
- Guides and Tutorials
- Health and Fitness
- Home Improvement
- Home Security
- Internet and Businesses Online
- Internet Marketing
- IT Careers
- Mobile Apps
- Mobile Security
- New Tech
- Online Shopping
- Project Management
- Reference and Education
- Reputation Management
- Sales & Marketing
- Shopping and Product reviews
- Small Business
- Social Media
- Tech Trends
- Technical Support
- Technology in Education
- Tips & Tricks
- Tips And Tricks
- Video Conferencing
- Virtual Reality
- Wearable Technology
- Web Design
- Web Development
- Web Hosting
Mike McGahan, President and CEO of CLV Group Inc., Discusses Leadership Role, upcoming Real Estate Developments
Dedication and passion are just some of the important traits that make up a positive role model and business leader. As President and CEO of CLV Group Inc., Mike McGahan understands the importance of these characteristics, along with having appreciation for those people who work…
7 Unique Teambuilding Ideas To Encourage More Collaboration
One of the secrets to managing a successful team of marketing employees is fostering an environment where those employees are comfortable collaborating with each other. If your team members are capable of communicating efficiently, sharing when they’re overburdened and splitting the workload, and genuinely enjoying…
3 Ways to Prepare For Cyber Security Risks That Employees Must Know
In a world where everything is much easier to do via mobile, app, or device, technology is not going to slow down. We’re all guilty of potentially owning more than one device, whether that is our personal phones, work phones, tablets or fitness trackers. All…
Non-Negotiable Elements For Your Business IT Security Plan
In 2019, having a business IT security plan is more important than ever. An IT security plan is the first line of defense you have for protecting your business – and your clients – against cybercriminals. Cybercriminals include hackers, who frequently obtain personal information with…
Businesses Need To Be Proactive When It Comes To Cyber Security
For business of any size, making sure they are not only compliant with security regulations but continually improving and adjusting the measures they have in place is vital. Quite often the factor which determines how a business approaches cyber security is the mindset of the…
How To Become A Cyber Security Analyst
What is Cyber Security? Cyber security is the practice of protecting a system or network from digital attacks. These attacks are generally aimed to retrieve or destroy sensitive information and it is a serious threat to all the organizations. Who is A Cyber Security Analyst…