Along with the advantages come challenges. Here are the business partnership problems that you should be aware of before starting any partnership.
Business Partnership Problems
Trust can be defined as confidence in the intentions, integrity, and ability of another person. In a business partnership, a lack of trust between partners can ultimately lead a business to a downfall. It is said that “lack of communication is one of the main reasons for starting a partnership”.
Conflict is not necessarily a reason for a business partnership going down, but it can be if the partners involved are not mature enough to handle conflicts. Most conflicts between partners usually arise from differences in opinions and personalities. To avoid this issue from arising, partners should have similar personalities and interests.
In an ideal situation, each partner should have his or her own separate identity and independence about the business and its operations. Any partner that is too dependent on the business and his or her partner may be a recipe for disaster. A partner who is too dependent on his or her partner may be inclined to break the terms of their partnership agreement if it is in his or her best interest to do so.
The lack of division of labor can also cause problems in a business partnership. The division of labor should be fair and equitable towards both partners. This can be attained by having a written agreement that states which partners will handle which aspects of the business. Failure to do this may result in one partner feeling that he or she is doing all the work (and not getting paid for it) while his or her partner is sitting back and relaxing.
In a business partnership, both partners should have similar goals as well as a similar view of the world. In addition, they should have similar interests and personalities. If one partner is too competitive while the other is too laid back, it can cause conflicts in the long run. If both partners are not on the same page regarding the business, disaster may strike.
6. Personality Conflict
The issues that arise from personality conflicts are said to be “some of the most challenging issues that partnerships face”. The source of these problems lies within the partners themselves; it depends on how they act towards each other rather than what they do to each other.
How to Avoid and Mitigate These
You can avoid these conflicts and challenges by:
1. Having a well-written partnership agreement
2. Being aware of the problems that may arise in a business partnership
3. Communicating with your partner and avoiding having a “silent partner”
4. Having a good relationship with your partner
5. Having a good relationship with other people who matter to the partnership
6. Having a fair division of labor between partners, as well as being willing to accept your share of work if it is not divided equally between you and your partner
7. Having similar goals as well as similar views of the world as your partner(s)
8. Having similar interests as well as personalities as your partner(s)