Azima Business Clinic
What to look for in a business partner-Part 2.
A business partnership is a formal arrangement by two or more parties to manage and operate a business together and share its profits. As the English men have it, two heads are better than one.
It is possible for an entrepreneur to start and grow a business all by himself/herself as the proprietor however operating a partnership business gives better returns as compared to sole proprietorship's.
Best example of a successful partnership is the McDonalds. Started by Richard and Maurice McDonald in 1940, McDonald’s was first a barbeque stand. Later transitioning to hamburgers in 1948. when Business man Ray Kroc joined the two brothers (Richard and Maurice) in 1995 the MacDonald’s corporation was founded.
Today the McDonald's restaurants are found in 120 countries and territories around the world and serve 68 million customers each day. McDonald's operates 37,855 restaurants worldwide, employing more than 210,000 people as of the end of 2018. This could not have been possible if Richard and Maurice did not go into partnership with Ray Krock.
Partnerships businesses are likely to pick up faster because of better capital availability. However, not all partnerships become successful in the end.
Statistics show that 70 per cent of business partnership fails. Its is therefore advisable to go for specific kind of traits when inviting new people to join you in a partnership arrangement.
In Azima , we are passionate about wealth creation, below are top 3 pointers on What to consider when looking for business partners.
1. Shared vision and goals
Before you even consider having someone as your business partner, make sure that they share your vision and goals. Both of you can then team up to achieve your shared vision and goals. Someone who shares your vision will be just as dedicated as you are to the business. They’ll give it their 100 per cent, putting in their fair share to work the business. They’ll also be there to weather the storms alongside you instead of bolting out at the first sign of trouble.
A partner who believes in your idea can also help you shape it into an even better idea. Ask your prospective partner what they think of the business. Do they believe in the ideals behind it or just the money? Where do they see themselves and the business in three or five years? How do they think you can improve your idea?
2. A good work ethic
Remember why Mark Zuckerberg and Eduardo Saverin broke up? When Zuckerberg was busy working on Facebook in Silicon Valley, Saverin was gallivanting all over New York. Clearly Saverin had a poor work ethic, which contributed to their disagreements.
When scouting for a partner, study the person’s work habits. You can ask questions about when they wake up and go to sleep, how they view work, who they look up to, and how they interact with supporting staff. You want to partner with someone who will work just as hard as you on and in the business.
3. Great business networks
Your network is your net worth.Networking is a key element to succeed in business. Your partner should come with a wide network of valuable connections to grow your business .
Their networks could lead to more customers, get you insider knowledge on sourcing for goods, and information on where to sell goods for relatively higher prices. It could also lead you to hiring better employees for different roles in your company.
Your prospective business partner should have great rapport with the people around him, from former colleagues, bosses, business partners, or employees. All these will go a long way in achieving business success.
Stay put for the next article as we unpack more factors to consider before entering in a business partnership.
With profound respect.
Coach Maina Azimio.
ICF- Accredited Certified Professional Coach, Conference Speaker and Corporate Trainer in Wellness.
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