A partnership is the relationship existing between two or more persons who join to carry on a trade or business. Each person contributes money, property, labor or skill, and expects to share in the profits and losses of the business.
Partnerships exist in different ways where by the nature of the entities working together may differ; the structuring of the relationship may not be the same; and the desired outcome may vary.
The power of business partnership is amazing. It’s a highly effective business model many young entrepreneurs should consider as they set foot in the entrepreneurial journey. Today more than ever, partnerships are essential to building total solutions, business growth and winning against the competition. However, before you choose your partner, the following things need to be clear;
Goals and values
If your partner does not share similar dreams, passions and goals about the business, there’s a high chance the business partnership will never work. You therefore, need a partner who is motivated and ready to passionately work on the business with you under every condition. Someone who takes the business as serious as you do.
A good business partner always contributes something that adds value to the business. It could be technical or business skills, capital, connections, time and effort, equipment etc. Get someone with skills different from yours and which you need for the success of the business.
You must be compatible
You should partner with somebody you feel comfortable with; you need to get along with your partner.
Align your expectations from the business
It should be clear what each person would own, do and get from the business. You can have a Partnership Deed or a Memorandum Of Understanding that clearly spells out the terms of the partnership.
Map the industry
A useful exercise in seeking a partner is to map out the ecosystem of the industry in which you operate and to find a partner who helps you become more powerful and more productive.