12 Steps To A Successful Business Partnership - Part 1

A partnership is a single business in which two or more persons share ownership. Each partner makes a certain contribution, as may be agreed upon, to all aspects of the business. That contribution may include money, property, labor or skill and otherwise as may be needed for the business to run. In return, each partner shares in the profits and losses of the business, in the course of time the business is active. 

For a partnership to succeed, a would-be partner should consider the following necessities, before and during its making. These are divided into three categories, such as Key Partners Attributes, Formal Understanding and Key Partnership Factors.

Key Partners' Attributes: What key attributes should you look for in a would-be partner or partners? The following list will help to guide you in choosing the right partner for your proposed business. 

• Cordial and Candid Trust - Check if you can leave your wallet with your partner to be. This is the most crucial of the four attributes listed here. A partner you can not trust is a road map to failure even before starting the business. Ask, Can I leave my wallet with him or her?
• Complimentary Skills - Are the skills and talents the partners bring to the table complimentary or conflicting? The more the diversity and differences, the better the chance of a great partnership and business success. A partnership need diverse or different sets of skills, opinions, views etc that can be well harnessed for the good of the partnership.
• Compatible Working Habits - This aspect would mean a fair division and distribution of labor and/or skills, without having to clash or crash in the business operations, day to day. The working habits must harmonize for the partnership to be successful. Imagine, if one of the partners is a leisure loving extremist and do so at the expense of the business!
• Communication Skills - Good communication skills or culture should be shown or seen in partners. Check for this at the initial stage before the papers are signed! This very important attribute should co-exist with trustworthiness. A failure in this could possibly erode the absolute trust even when it was initially shown between the partners. There is no excuse for not having good communication.

Formal Understanding Between Partners: From the first meeting where the business proposal may have been introduced and discussed, to the final meeting before the signing of the partnership deal, formal understandings are crucial.

• Written Partnership Agreement - This agreement should cover everything that has been discussed and agreed upon. It should confirm and conform to the terms and conditions of the partnership, identifying to all partners, their rights, ownership and obligations, in the clearest way possible.
• Written Entry and Exit Strategy - The basis for entry and exit should be well-discussed and spelled out. It should be checked to see its fair and equitable stance for all partners, with changing situation from what had been projected, from time to time. The importance of this cannot be over-emphasized and should be under-rated.

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