BUSINESS PARTNERSHIPS

The Road to Success or Failure

By:? Cathy Droz – Co-Founder The Women 360

My business partner, Nancy Meek posted a photo of us on LinkedIn from our last The Women 360 pop-up event in Phoenix, Arizona. She said, “when you have a business partner, and you still think alike after three years of building together” The photo showed us in front of a large screen with our names and welcoming our guests to the event held at the Foundation for the Blind.

It made me think about partnerships and why so many do not work.? Yes, I hear stories all the time of people who start off as partners and next thing you know they don’t get along, start rumors and many times wind up in legal battles or divorce.

PERSONAL EXPERIENCE

I personally partnered with a gentleman in 2013 who I trusted and felt we both brought to the table what would be needed for a successful business.? We had a business plan, an LLC with 51/49 ownership agreement (I was the 51%).? What we didn’t define was the sharing of equity and accountability as to tasks and responsibilities.? We were not friends outside of business so often he would go missing, and I was doing all the heavy lifting.? I also deposited more money into the account than he did. When I finally said, this isn’t working we had only $1,000 to split and go our separate ways.? He agreed on a Saturday and by Monday he said he was suing me for the trademark that I created and paid attorneys to file.?? So silly I thought it didn’t need to end this way.? The problem was I had to start all over again.

I had always owned my own business.? Therefore wins, losses, responsibility, accountability, bookkeeping, creativity, phone calls, meetings were all on me.? I was a good partner for myself.? When I needed help, I could ask a mentor or hire someone for that task.? So, I would say I was na?ve to partnerships despite my father and brother both having partners at one point in their careers.? Humm, now that I think of it, they had their share of woes years into their businesses.

PARTNERSHIPS CAN WORK

Business partnerships can be a powerful vehicle for success, but they also come with their share of challenges and potential pitfalls. With my research and actual experience, I would like to share the dynamics of business partnerships, what makes them succeed or fail, and consider some key factors that men and women should keep in mind when entering a partnership.

What Makes Business Partnerships Succeed

Complementary Skills and Expertise:

·???????? Partners with different skill sets can bring diverse strengths to the table.

·???????? Complementary expertise can lead to more effective problem-solving.

Trust and Open Communication:

·???????? Trust is the foundation of any partnership, needed for collaboration.

·???????? Honest communication helps partners with challenges and misunderstandings.

·???????? Well-defined roles and responsibilities prevent conflicts and ensure each one’s value.

·???????? A clear division of labor enhances efficiency.

Shared Vision and Values:

·???????? Partners should align on the company's long-term goals, mission, and values.

·???????? A shared vision motivates partners and helps them weather challenges.

?WHY BUSINESS PARTNERSHIPS FAIL

Misaligned Goals and Values:

·???????? If partners have different visions or values and goals.

Poor Communication:

·???????? If you don’t know what that means, don’t bother to partner with anyone.

Financial Disagreements:?

·???????? Differences in monetary management or compensation.

·???????? Disagreements over money often lead to legal disputes.

Lack of Legal Agreements:

·?? The absence of a legal partnership agreement can lead to complications.

Changes in Personal Circumstances:

·???????? Life changes, such as marriage, divorce, illness, or family emergencies can disrupt the business.

Why Businesses Fail and Who Gains or Loses

·???????? When a partnership fails, the consequences can be far-reaching.

·???????? Partners themselves experience monetary loss and damaged relationships.

·???????? Creditors, investors, and employees may also suffer.

·???????? Legal costs can drain resources.

·???????? Competitors or other businesses in the same industry may benefit if the failing business leaves a void.

?Famous Successful Business Partnerships

Numerous successful partnerships have left their mark on business history. Here are some of my favorite:

• ·???????? Steve Jobs and Steve Wozniak (Apple Inc.)
• ·???????? Larry Page and Sergey Brin (Google)
• ·???????? Warren Buffett and Charlie Munger (Berkshire Hathaway)
• ·???????? Bill Gates and Paul Allen (Microsoft)
• ·???????? Ben Cohen and Jerry Greenfield (Ben & Jerry's)

IN MY OPINION:

Business partnerships can be a double-edged sword, offering enormous potential for success but also carrying the risk of failure. To succeed, partners need complementary skills, open communication, and shared values.

I have an excellent partner in?Nancy Meek. We know each other’s strengths and we make decisions as a unit.? We revisit our goals monthly, boost each other up and have meetings just like Fortune 500 companies. The only difference is they are at her house or mine.? We are each other’s biggest fans. In my opinion communication and integrity are the key… Isn’t it for any successful partnership?