Top tips on how to work with a business partner

   

There are so many different skills that have to be mastered when you start and run a business, that it can be quite overwhelming.

You will find your skill set stretched virtually every day, especially in the first few years. One moment you will be sat mastering Excel to do some cash flow predictions; next you may find your creative talents being tested while you design a flyer; an hour later you may be sat in front of a potential buyer pitching for business.

It’s not surprising that some people find it tough to cope with. Many people start their own business because they’re good at delivering their service or making their product. Getting out there and selling it is a whole different ball game!

Teaming up with a business partner can bring more success

If you’re worried about it, maybe you should consider getting together with a business partner. If you can make something and someone else can sell it, then working together could make each of you more money than working separately.

While this makes perfect sense on paper, the realities of sharing a business with someone else can be challenging. Working closely with someone in business is pretty much like being married, with all the highs and lows (but without the sex and cleaning!). You need to be able to trust each other and communicate openly, not just in bad times but the good times too.

If there is any resentment between you – even just a tiny scrap of annoyance about workload – this will cause problems. If you think you’re doing 75 per cent of the work, you’ll be furious at handing over 50 per cent of the profit.

And if it goes wrong, the “divorce” will consume your time and energy and cause untold damage to your business. When partnerships go bad, years of hard work go down the drain.

Here are Bytestart’s top seven things to think about before you enter into a partnership:

Is getting a business partner the right thing to do?

If you are a control freak you will probably not work successfully on an equal basis with someone else. Be clear about your reasons for working with a partner. If you need someone just for money, that’s not a solid base for a partnership.

Be objective

The worst kind of partner is your best friend “just because you are friends”, or worse someone you feel sorry for because they are down on their luck. You wouldn’t marry someone on this basis. You need to think about the person you are considering with your brain, not your heart.

Ensure you and your business partner have different skill sets

Getting a clone of yourself is pointless and will leave the business with a gaping hole. Make a list of the key skills your business needs to have to succeed, tick off the skills that you already possess or can easily learn and then find a business partner who has the ability to tackle the skills you don't have. You won’t find someone who’s a perfect fit, but you can get close.

Take your time

Don’t rush into a partnership, even if you urgently need help. In fact if you’re in urgent need of a partner, now is not the time to go looking for one! Just as drunken Las Vegas weddings can be regretted, so can shotgun partnerships!

Make it an equal partnership

Split the work fifty fifty from day one. And ensure you each have an equal financial investment.

Protect yourselves legally

Every business partnership must have a solid legal basis. Use a solicitor to help you decide in advance how you will work together, own the business, and what you will do if it goes wrong. Don’t be tempted to skip this, or you may well regret it.

Make rules and stick to them

If you know what responsibilities each of you has, your business will thrive with two of you. But make sure of it by giving your partnership a formal review every quarter (your business will certainly benefit from this). Do it off site and away from work, perhaps over a meal. And don’t forget to enjoy the spoils of your hard work together.

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