Partnerships and small business

It has been said that partnerships are a lot like business, except that in the end, only one of the partners gets screwed. But it doesn't have to be that way.

Too often partnerships are formed without sufficient thought and planning. In this regard, partnerships are no different from many small businesses. But in a partnership, this can become a more complex problem--each partner can have different ideas and visions for the business. If these ideas and visions are not discussed, the partners can easily pull the business in different directions, with the result being that the business is torn apart.

One of the most effective ways to overcome this potential problem is for each partner to have clearly defined roles within the business. One may handle sales and marketing, while the other oversees production. Or one may deal with finance and planning, while the other manages the store.

Much of the problem arises from the mistaken belief that partners are equal in every respect. This is not true, nor does it make good business sense. Each partner has particular strengths and weaknesses, and each should play to his strengths. This might mean that one partner makes unilateral decisions in certain areas of the business, while the other partner does the same in other areas.

Partnerships--like marriages--can work very well. But they--like marriages--require good communications and reasonable expectations.