HOW TO BUILD AN ENDURING PARTNERSHIP BUSINESS

Successfully running a partnership business involving two or more owners comes with daunting challenges. Most of which swallow partnership business in less than five years of operation. 

 

Difficult as it may seem the following tips can help you navigate the murky waters of Partnership business.

1. Hundred Percent Transparency and Accountability. From the take-off of the business it is strongly expedient that partners demand and agree to be absolutely transparent and accountable to one another. Experience has shown that in the beginning of most partnership businesses, partners demonstrate a level of transparency but fizzles with time. According to a partner in a business that has grown from small start-up to a conglomerate, spanning about 20 years, he and his partner share the same office. They receive personal visitors, make and receive phone calls and so on in the same office. This practice has fostered transparency and accountability, as no partner runs a private business on the side.

2. Shared Principles and Ethical Values.  Another fundamental Key to building an enduring partnership is that partners must share same ethical values and principles. For instance, a partner who is a workaholic and believes in working over the weekend and the other who would not trade weekend clubbing for anything will not last together in business. So run a principle-values compatibility check before signing up for that partnership.

3. Trust. An absolute level of trust between parties is essential. Trust can be earned through individual actions. Things like possessing equal cheque-signing powers can help build trust.

4. Collective Responsibility. Practicing an art of collective responsibility has proved to engender a lasting partnership business. Adopting the concept of collective responsibility-where no single individual takes all the credit or attribute the success of business transaction to himself will strengthen the cord of a partnership business. As no individual is singled out for the success of a business transaction, so also is no one blamed in the event of business failure.

5. Frequent (Regular) Communication. Constant and open communication would help partners be free of unnecessary suspicions about each other’s moves. The success of every relationship whether in business, marriage etc is premised upon effective communication. Communication here will include seeking each other’s opinion on every issue no matter how trivial or sudden. Such practice will ensure that every decision made in the business portrays the collective views of all partners.

6. Esteem Job responsibilities above titles. Job titles hold no value; it is delivery that confers the true value. Partners should de-emphasize job titles like CEO, MD. Job titles and functions should be assumed as required by the projects. This can be done according to partner’s expertise and skills. Partner A can assume the responsibility of a CEO and deliver as such in project B based on his skills and expertise. Partner B can as well function as the CEO in project Y and equally deliver as such. Whatever job function a partner assumes per time or whichever project he spearheads at a given time he reports to the organization management team at the end.