Why do most business partnerships fail? What happens if a business partnership fails? Today we’ll try to explain you when business partnerships go wrong and how to avoid it.
When you see the income and the results are great, everybody’s happy. The moment when business stops to deliver results can be critical for your partnership, so people start to question each other. How to avoid a breakdown? To communicate better, more frequent and more in-depth. Make sure that all the partners understand and sign off on all the decisions that are being made so that you don’t get into the blame game of he said and she said.
Poor collaboration and not wanting to get each other’s input can crush your partnership as fast as you can imagine. Make sure that your partner has the same goals as you. Until your expectations are different with your partner and there is no clear vision of what you are coming for – you would never succeed. We can also mention the same problem with the employees for your company. Your goals and theirs are different. You might be working for creating an asset and they work for money.
Devhance’s team has a meeting ritual and it definitely helps to focus more, achieve more. No meeting ritual is a mistake that can be critical! Don’t be afraid to disagree. Acknowledge that there will be disagreements and prepare to face them calmly. The fuel for your business are weekly/monthly meetings. Collaboration on the decisions is a key to success, don’t try to avoid this part of your company’s development!
When the business is underperforming, it can lead to partners’ mistrusting each other, challenging each other’s philosophy and questioning how much time, effort and money the other partner is putting into the business.
The rule #1 – don’t compete with each other. The rule #2 - Take time away from each other and don’t give up your personal life for the business. The rule #3 – trust, but control your partnership and employees.
If it’s not salvageable, there needs to be documentation in place stating how you get out of that partnership. In fact, one of the biggest failures in small businesses is the lack of an exit agreement.