Starting a business is not always an easy process for people in Georgia. People often form partnerships with other individuals because they may bring valuable skills, experiences and financing resources to the table. When done correctly, business alliances can help to facilitate organizational growth, transparency and longevity. However, as beneficial as business partnerships may seem, potential owners should take some time to learn about common mistakes they should avoid.
Lack of communication
Communication is a critical aspect of any business, especially partnerships. Everyone who is a part of a business alliance should discuss business needs and develop goals and solutions together. It is necessary for them to have a clear view of their situations, so they can all remain on the same page. Collaborators who do not communicate effectively run the risk of undermining their business relationships.
Not having written agreements
Business partners should document communications, agreements and issues that pertain to their companies in written agreements. These agreements should detail goals, timelines, strategies, expectations and other important business concerns. They should also include information on how partners should conduct themselves and how to manage disagreements, so these do not escalate into bigger conflicts. By maintaining written agreements with each other, business partners have the information they need to keep each other on task.
Overlooking crucial details
It is not uncommon for business partners to become so excited about their venture’s chances of success that they overlook minor and major details that show the potential for failure. Business partners should touch bases with each other frequently to ensure that they both have the same or similar goals and strategies in mind. They should also discuss their options regularly to ensure that they both have realistic views of their business’ health and growth opportunities. Conflicts and business problems can ensue when business partners are not looking at their situations objectively and are not on the same page.
Not having an exit strategy
When two people form a partnership, the last thing that may be on their minds is leaving it. However, it is important for both parties to develop an exit strategy to avoid potential legal issues and complications in the future if one of them decides to leave the business or if their business relationship turns sour. Before entering into a partnership, all involved parties should include an exit clause in their written agreements that clearly outlines every aspect that can affect the dissolution of their collaboration.
A solid partnership is necessary for business owners who want their company to grow and succeed for the long-term. Anyone who is thinking about forming a partnership or is currently involved in one and needs assistance should speak with an attorney to receive guidance on the situation.