The Sunday Mail
Taurai Changwa Business Forum
EXPERTS say business partnerships are like marriages — many end in divorce.
But most interestingly, teams that find a way to make their partnerships work almost always say they could not have made it where it not for the input of their partners.
Well, as individuals who have different backgrounds, tastes and opinion, we are bound to see things differently, and it is those differences that can either make or break a business partnership.
And local businesses should always be wary of potential pitfalls such as these, especially in a challenging economic environment that we find ourselves in.
Strained relations can materially impact on the future wellbeing of a company.
While a business might be a distinct corporate entity and legal persona from its founders and or shareholders, it is inarguably given direction by them.
So, there is likely to be a direct correlation between the strength of their partnership and the direction a business takes.
There are numerous examples, even on the local market, of how promising business enterprises closed shop after relationships between the business owners irretrievably broke down.
Balanced relationship
Business partners should always ensure that their relationship is not lopsided, for this is a source of future conflict.
Responsibility, just like in any other relationship, should be shared fairly. Partnerships, therefore, should necessarily be based on what each partner is contributing to the business.
Surely it cannot be a viable and sustainable relationship if one partner contributes the most in terms of investment and sourcing clients and shares the proceeds with a less effective partner. Building and running a business is not easy, and the burden needs to be shared – equally.
Each investor should contribute significant input to justify the value of their share. This can either be through capitalising the business or bringing more clients.
In difficult operating environments such as those currently obtaining on the local market, underperformance is often followed by an inquiry into the reasons why it is not performing as expected. And if the reasons are being caused by a slackening partner, the relationship naturally unravels.
Communication
Besides the need to share the burden in running a business, communication and integrity are essential to the success of any undertaking. Trust, which is often an expensive commodity nowadays, can easily define how a business will perform in future.
This is however easier said than done. It is very important for business partners not to argue about trivial stuff; and when things become stressful, it also becomes necessary to develop the emotional intelligence to keep calm.
It also doesn’t help to be accusatory; it’s about finding solutions, not identifying the problem. A lot of time should be spent on finding solutions to problems.
While there will always be differences in a partnership, the bottom line is, the business should make money and efforts should not be one-sided.
Again, a shared vision between partners can help grow business is a very sustained manner. It is however folly to think a vision can be shared.
The best way to achieve this is to conceptualise and forge a common vision together, and with time, this becomes the template for success. Some say you should keep it simple and do it well.
Having a deep respect for each other’s opinions and communicating them to each other on a regular basis is vital. But before getting into a business relationship, it might be important to evaluate your different skills set and get an appreciation of your core values.
This helps build last relationships. Usually, respecting the other person’s skill set, sharing the same leadership values and aligning how you treat people often leads to successful partnerships.
It is surely not easy to be in a partnership, but it can work through open communication and not taking offense when things go wrong. Successful partnerships are built on the premise of equality, mutual collaboration and shared responsibility.
In theory, they are supposed to equitably benefit all parties involved. However, if partners don’t share the same goals, expectations or ways of doing business, their partnership is destined for failure, which will have devastating effects on both the business and personal relationships of the partners.
There is no guarantee that just because you a good friends, you will likely be good business partners. In fact, there is a danger that you might lose both.
Don’t try to out-compete each other, but try to outwit competition. The whole idea of any business is to make money. Partnerships have the potential to turn sour once greed sets in.
One partner may be working more than the other and bringing more business than the other and this is where problems start. At times it may feel difficult to highlight this fact to your colleague but it is important to be transparent and talk about it.
A partnership goes beyond signed pieces of papers. It is about what value you bring to the table. Any partnership is in trouble when one partner feels like he or she is in it alone, one partner feels that he or she would rather be in it alone or with a different partner.
Well, running a business on your own is surely easy but for growth’s sake, you may need good partners to walk the journey with you. In any arrangement, there is bound to be challenges, but success is defined by the ability to go past the hurdles.
Taurai Changwa is a member of the Institute of Chartered Accountants of Zimbabwe and an estate administrator with vast experience in tax, accounting, audit and corporate governance issues. He is a director of Umar & Tach Advisory and writes in his personal capacity. Feedback: [email protected] and WhatsApp +263772374784
