Creating a long-lasting business partnership is a task that only few business owners master. One of the most important factors is clear division of roles and responsibilities. Ideally, business partners should have complementary skill sets to makes it easier to split up the workload. Divvying up responsibilities is not only essential in order to take advantage of each partner’s talents, but also to avoid duplicating efforts.
Once you’ve decided how to split up roles and responsibilities, put it on paper. Creating an Operating Agreement holds both partners accountable and avoids disagreements or confusion. Of course, as in any other relationship, consistent communication is key. Expectations should always be discussed to ensure a thriving business and a harmonious partnership.
Successful business partners also overcome the hurdle of decision-making. Having two or more people calling the shots can sometimes slow down the decision-making process, so it is necessary to create a framework of core values and guiding principles.
According to David Gage, author of The Partnership Charter, you don’t have to be great friends to be great partners. Choosing your best buddy as your business partner can be tricky. Possible downsides can include not knowing your friend as well as you think or taking disagreements too personal.
Find out how our firm uses David Gage’s 4-step process of creating comprehensive Operating Agreements.