Most people would never consider a mediator to consult before forming a partnership. I have consulted a number of potential partnerships. Some decided against moving forward after the consultation, others proceeded with a better understanding around roles, relationships and conflict management. Many partnerships fail not because of poor operating agreements, but because responsibilities and roles were not clearly defined. Or, the partners had unhealthy conflict resolution skills.
Partners do not understand they are really getting married. They will spend more time with each other than their spouses. The dynamics are similar as well. Communication is critical in business partnerships. Just as a marriage will ultimately fail without good communication, a partnership will not survive as well. One of the keys to communication is how partners deal with conflict. Those who resolve conflict in a healthy manner will flourish in a business relationship, while those who are dysfunctional will struggle and often fail.
As mentioned earlier, defining roles and responsibilities is critical in a healthy business relationship. Who pays the bills? How do we decide on expenditures? How do divide the work leveraging our individual strengths? How can we mitigate against our weaknesses. Do we have a clear and concise business plan to guide us. How do acquire capital or debt? These, and a great many other questions, must be considered for clarity and division of workload. As a mediator, I look for not only clarity, but HOW will you do the work.
Other considerations is personality type and conflict style in partnerships. You need to understand how your partners are wired. Just as you cannot change a spouse, you will not change your business partner. Your jobs are to understand one another and learn to adapt to each other.
Partnerships can be great for business and friendship. You can be stronger together than apart. However, if care and consideration is not taken to form the partnership correctly, or partners are not chosen carefully, business and relationships can fail miserably. A dissolution of a business is very similar to a divorce. The emotional and financial stress is considerable.
Genesis Mediation offers consultation for those considering partnerships. A couple hours of consultation may save you years of grief.
