Creating Partnerships for a Competitive Edge

Have the Same Vision

For a partnership to be successful, all parties involved must agree on the same strategic direction of the company. Set a clear agreed course for the business that meets the needs of both partners.

Define Business Roles

A winning business partnership capitalizes on the strengths and skills of each partner. Divide business roles according to each individuals strengths. For example one partner may be strong in marketing, operations and finance, the other sales, human resources and leadership.

Avoid the 50/50 Split

It may seem logical and fair to split the share of ownership into an equal 50 percent. However, this ownership structure can impair decision making in the future. Instead of having decisions stalemated, consider a 49 percent to 51 percent split. If this is not possible, an outside board for bigger issue disagreements can help your company from being deadlocked on decisions.

Hold a Monthly Partner Meeting

A strong business partnership is built on an open communicating relationship. Meet on a monthly basis to share grievances, review roles and provide constructive criticism.

Create a Partnership Agreement

It is simple to set up a partnership because no legal documents are needed. Partnerships are often an oral agreement between two or more parties. Potential problems can be averted down the road by drawing up a legal partnership agreement.

Building a business can be more rewarding and profitable in a partnership environment. Consider a business partnership structure when you have someone to compliment your skill set and add value to your company.

Partnerships can work when the right foundation is laid in the beginning.
And a successful partnership will bring you competitive advantage.

© James Chapman Find Out More About Creating Competitive Partnerships