Business partnerships are a tricky thing. Some are born of necessity — you and your design partner get laid off and decide to start an agency. Some share a vision — you and a developer have a social media concept that you’re convinced will push Facebook off its pedestal. Others are a matter of luck and timing — you’re compelled by the brilliance of the speaker at a networking event. Turns out, you’re both ‘in transition’ and you convince her that with your talent and her contacts, “Look out world, here we come!”
Let’s say you take it all the way through due diligence:
You write a business plan
You have enough capital between you to last a year
You create your value proposition and website
You find affordable office space or decide to work remotely
Now comes the real test. You pitch your business to a contact and land your first client! Break out the champagne!
Not so fast. Here’s a peek at what can happen.
How partnerships can turn ugly
Drama. I had a business partner with a long-running dysfunctional domestic relationship. They called each other throughout the day, bickering over past hurts, playing mind games, and tossing F-bombs at each other. I said, “Could you please refrain from doing this in the office?” When it didn’t stop, I started to psychoanalyze the problem — and share my insights with my partner. Bad idea.
Know the person you’re dealing with. I knew she had a good head for strategy, and I thought we were on the same page. When it came to financial success, we were. But if you’re not in sync with how you treat each other, this will find its way into the business and make things toxic. So, before you hit “go,” get on the same page by:
Setting personal and professional boundaries
Having a monthly lunch or dinner where you review how things are going
Seek professional help from a business counselor who can help with communications
Have a partnership agreement that you can get from an attorney
Have a financial plan that will carry you through recessionary times
Fear. There’s one thing all businesses fear, and that’s a lack of sales. If yours is a service business—either an agency or a consulting practice—the partners are going to be responsible for business development. Trust me on this. No outside hire is going to have the motivation to create a prospecting plan, post consistently on social media, plus do the follow-up calls and emails.
For some, prospecting is all about face-to-face networking. I had one partner who was a joiner. She hit all the B2B networking events, served on committees and built relationships. That’s great if you have the time and inclination. But building a list, using digital media and picking up the phone are all part of an integrated sales strategy. Make sure that at least one member of the partnership is fearless and impervious to rejection.
If you are thinking about starting a new venture with a partner, it helps to do a reality check on your expectations.
Managing expectations
My first partnership lasted 15 years; then we decided to add two additional partners. Why? I still ask myself that question. If two is good, then four is better? Not so. One of the partners did bring in a significant retail account. But it came with a $40 million dollar media budget. So we had to go outside for a lot of additional services and people. That put the B2B accounts on the back burner. At one point, the new partner said “We’re going to be a big TV agency!” Didn’t happen. The account was the result of a personal relationship; not our broadcast media acumen. They were in Chapter 11, and a market downturn put them out of business.
I can’t stress this enough: align your expectations to ensure that you’re working toward the same goals. This will impact:
The type of clients you serve
The people you hire
The culture you foster
The reputation you build
The success you enjoy
Today, I enjoy a healthy partnership with talented writer and editor, Kate Dieckmann. We were introduced at a holiday party by a mutual friend who said, “You two should talk; you do the same thing.” It just so happened that I was looking for a partner at the time. What we did was a two-month on-ramp that included:.
Meet with clients
Learn the accounts
Learn each other’s strengths
Write out a business plan
Obtain our LLC set up with a partnership agreement
Divvy up work assignments
Familiarize ourselves with each other’s styles
It’s been a good fit. You can see our work at bk-storytellers.com.
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