Hey People! we are back with one more interesting topic and that is the “6 Things To Avoid In Business Partnership“. Note that business runs smoothly when people avoid internal mistakes that cost them heavily. In this article, we will share with you the six huge mistakes that should be avoided while creating a business partnership. Let’s start!
#1 AVOID FRIENDSHIP BASED PARTNERSHIPS :
Oftentimes, the best friends are likely to start a business together. That is, in fact, the fastest way of losing friendship. The first thing that you need to keep in mind is that business partnerships are always “need-based” instead of “friendship based”. For example, if you’re a technical person, you have the know-how of the technical work but you lack money for establishing an office or the marketing expertise. So you will need a partner who can invest in your business or do the marketing stuff. In simple words, you need to be opposite of each other. You have to stay in your zone of genius and have someone to really take on their respective zone of genius and be in a mutual awe of one another.
One more thing is that if you have an idea and someone has the skill, simple hire him and work out an independent contractor agreement. Don’t give away what you don’t have to. Don’t become business partners with them until it becomes extremely necessary for you to do that.
One more thing is that if you have an idea and someone has the skill, simple hire him and work out an independent contractor agreement. Don’t give away what you don’t have to. Don’t become business partners with them until it becomes essential for you to do that.
#2 AVOID VAGUE TERMS:
Due to the nature of partnership, every detail and obligation whether that is the ‘payment terms‘, ‘duties or responsibilities‘, or your ‘job descriptions‘ need to be clearly defined, documented and agreed upon by both parties. Don’t ever form an agreement based on a verbal contract. Since we all are humans and we are prone to errors and forgetfulness. So, there is a chance one can simply forget the terms and conditions and hence leading to conflict.
#3 AVOID CONCEALING OF THOUGHTS:
Oftentimes, when you’re doing partnerships, you are very enthusiastic, passionate and try to make a contract with the optimistic vibes and hope for everything to go well. But at the same time, you are having thoughts regarding the percentage you’re getting on behalf of the work you’re doing. Sometimes it seems that you deserve more share but you hesitate to ask for it. Bring those thoughts on the table at the right time otherwise they become troublesome in the future, resulting in the ending of partnership. So be bold. Remember that harsh agreement results in a long term partnership while the lenient ones end up soon.
#4 AVOID PAPERLESS DISCUSSIONS:
Every single discussion on the agreement between you and your partner must be documented or in written form. If not paperwork, save it in the form of an email so that is getting in the record that what terms, you were agreed upon.
#5 AVOID CONTRACTS WITH NO ENDING TERMS:
In every contract that you do with your partner, you must discuss the ending terms of the contract. Like in case of any loss or your partner seems to back off, then what percentage would each partner be entitled to pay. If you want your business to run under a long term partnership, do mention these aspects in the contract.
Related: How to write a business plan
#6 DO NOT BE TOO STRICT ON THE AGREEMENT:
You don’t need to be too strict on whatever the agreement consists of, whether that is the amount percentage of the workload, in order to run a long term business partnership. Don’t deal with everything in a harsh or technical manner. In a partnership, both ends have to give space to each other. It is not mandatory to work as much as your partner did. Do not limit this thing because this feels like stepping on the toes of your partner. Therefore, it may suffocate another person and leads to an unsuccessful partnership. One crucial fact that is the main reason for a successful business partnership is to give more than the decided or agreed percentage.
If you avoid these 6 things in a business partnership, this will definitely benefit you a lot and help you to learn how to grow in terms of business.