Is a Business Partnership for You?

The failure rate of partnerships is high. So why do you want to go into a partnership? There are many good rational reasons to go into to a partnership but if you have an 80% chance of failure, why do it?

Since I can’t convince you not to go into a partnership, at least get the right partner. Here are three questions to Answer if you are contemplating a partnership?

1. What is your philosophy in spending money in the partnership?
   1. Spend, spend, spend on the best, or, Thrifty, only spend when necessary.
2. What is your work ethic?
   1. Work to Live or Live to Work.
3. What is client/care sacrifice quotient?
   1. Client/patient satisfaction overrides my personal concerns or Client/patient can wait until Monday.

If these three questions are answered with brutal honesty by both individuals, prior to forming a partnership, they can help you beat the odds of a failing partnership.

1. Why do you have to agree on how the money is spent?  Because you are both bringing in the money, you both have to agree on how the money goes out of the business.  Money brings up more fights than anything else.  One might want to spend more money on high tech equipment, the other one might want to give high bonuses to employees.
2. Everyone thinks they have a “good work ethic” but do the partners agree on the same definition?
3. Work Ethic to one may mean show up to work on time and doing a good job.  Another may have defined work ethic as arriving at work 15 minutes early, getting their shirts professionally ironed and working to all hours of the nights and weekends.
4. Client/Patient sacrifice quotient.  Do you jump any time and any place to respond to a client or do you draw a line where the client/patient cannot invade your personal life.Each one of these can cause crushed expectations, martyr syndrome and claims “it’s not fair” of either partner.

There are many consultants that will try to make a partnership work. Unfortunately, it is probably a partnership that never should have been formed in the first place. Consultants will tell you it is communication. If only you communicate better. Which is probably true and it will probably help but it can’t cure a partnership that never should have happened. Partnership is like a marriage and consultants are like marriage counselors.

Who are the best people to answer the three questions above? People who know both individuals involved. Lawyers, accountants, family and friends. Both individuals must have the same answer for all three questions. I’m not a phycologist. I am just a person who has worked with rocky partnerships. Good Luck.