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A well-chosen partner could make or break your success

When you launch your business, you will probably focus on your product or service. You may take potential profits and market differentiators into consideration. Though, you might not realize how much help you will need to fully develop your concept.

Whether you begin with one partner or find that developing partnerships could be a strategic part of bringing your dream to fruition, involving others naturally increases the possibility of disputes. However, you may be able to keep disagreements to a minimum if you choose your partnerships wisely from the start.

Three considerations for selecting a business partner

Fortunately, a well-chosen partnership could bring recognition, funding and expertise to your company. But at the same time, an estimated 70% of business partnerships fall apart.

To reduce your chances of a partnership dispute:

  • Collaborate with people who strive to improve themselves, as well as your business
  • Place a higher value on a potential partner’s integrity than their connections or experience
  • Work with someone whose strengths complement yours

Escalated disagreements over authority, intellectual property rights or objectives could lead to a lengthy legal battle. As such, working toward resolution may impact your business by drawing your focus, time and money away from development.

There is a distinct reality that no matter who you partner with, you will not always see eye-to-eye on the best direction in which to take your company. Before you establish a clear operating agreement with anyone, you may want to make sure you understand how your choice could affect your business success.

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