Why don’t partnerships work and how can we make them work since partnerships increase the success rate of businesses by close to 40%?
A fallout among partners is one of the leading causes of business collapse in Uganda. In a conversation I had sometime back with Basil Ajer, the director small and medium enterprises (SMEs) division at Uganda Investment Authority, he noted that, “73% of the startups in Uganda are started by sole owners a thing that puts them in a disadvantaged startup position.”
We all know that businesses that are started by more than one owner have a higher chance of succeeding.
If that’s the case, why then are more and more Ugandan business owners preferring to go at it solo? Truth be told, we are seeing more and more Ugandans starting solo businesses.
In a brief discussion with Joshua Opio Kabite the sole founder and owner of White Falcon, a five year old IT company stated; “The main reason he started white falcon alone was due to the bad experience he had with a former business partner in his previous business. The fall out was so bad he swore never to do business with anyone else ever again.”
Opio’s experience is not so different from many other business owners in the country. Why don’t partnerships work and how can we make them work since partnerships increase the success rate of businesses by close to 40%?
Below is how to build successful business partnerships that will result into successful business ventures.
Share the same values
It’s very vital to get a business partner with whom you share the same values. If you are honest and get a dishonest partner you will have a hard time getting along. If you are hardworking and you get a lazy partner you will end up being over worked and strained and this could drive you out of the partnership as it brings no value to you and what you’re doing or trying to achieve. So make sure you get a business partner with whom you share values.
8 Lessons by Britam’s Allan Mafabi on Leadership, Growth, and SuccessChoose a partner with complementary skills
It’s wise to get a partner with complementary skills rather than like for like skills. If you’re good at marketing and poor at management it would only be wise to get a partner who is good at management. That way you will be able avoid duplication of yourself. In brief find someone whose strengths cover up your weaknesses.
Have a track record together
Don’t get someone you totally don’t know or have no history with. Business partnership is a real relationship that will require you to see and work with someone on a daily basis. If you choose someone you can’t stand or know nothing about you may end up with a surprise you may not be ready for. So make sure you choose someone you know pretty well, are comfortable to work along or talk to on a daily basis without a fuss or a fight.
Clearly define each partner’s role and responsibilities
Like Opio noted in our discussion, one of the reasons he walked out of his previous partnership was because they clashed a lot with his former business partner over who should do what. Most times they left a lot untackled because everyone expected the other to handle it. When that didn’t happen they argued and pointed fingers at each other as no one wanted to take the blame or responsibility. That’s why it’s important to clearly define roles and responsibilities in the partnership. Who will do what? Then hold each other accountable.
Put it in writing
Make sure you put down the terms of your agreement in writing. Who has contributed what? Who will do what? How you will settle disagreements? How you will share profits and every other small detail of the agreement? Make it hard to break the partnership by inserting clauses like no partner can start a rivaling business or if one partner chooses out then they can’t start a similar business at least until after two years of leaving.
Make sure it’s all written down and each partner signs the partnership agreement. It’s easy for people to go back on their word but it’s more difficult for them to go back on an agreement they appended their signature to. Then make sure you’re honest with each other and the whole partnership.
That way you will have a basis for a concrete long lasting business partnership that will become the foundation of building successful business.