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You’ll Never Succeed If You Don’t Avoid These 8 Things for Partnership

You’ll Never Succeed If You Don’t Avoid These 8 Things for Partnership

What goes into a successful business? There is an endless list of factors that we could talk about. Yet there are various forms of businesses: those owned by a single person, partnerships, and broad companies with shareholders and board members. Each one of has its own set of benefits and challenges.

Most of the people are nice to live with, but not to do business with!

― Amit Kalantri

Of course, if you are in a partnership, there are immense benefits that can be achieved. Most importantly, you can get great synergy by combining your resources with a partner. However, it can result in many issues as well. If you want to have a successful partnership, there are things that you should do and then there are many things that you shouldn’t do! Here, we have compiled a list of pitfalls that you must avoid in order to achieve great results.

1. DO NOT ignore the basics

First thing’s first: before jumping into a partnership boat, always sit back and determine your own goals and values. If you know your business targets well, it will be easier to find a like-minded partner. Otherwise, there’s a higher chance of friction.

2. DO NOT enter into verbal agreements

When you enter into a partnership, everything looks rosy at first. At that point in time, the need for writing things down doesn’t seem very pressing. However, as you proceed into the intricacies of the business, change is inevitable and if you run into disagreements, and don’t have an plan of action, you’ll find yourself at a loss.

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If you have everything in black and white, it will be very easy to tackle issues and even diverging opinions. Enter into a properly documented partnership agreement to avoid headaches in the future.

3. DO NOT jump into a partnership rashly

This is the most disastrous step that you can take for your business! Don’t be overeager to enter into a partnership. Always do your own mathematics. Look at the pros and cons clearly. Although you will get a helping hand to propel your business forward, there will be some costs, both financial and non-financial. Just like everything else, a partnership needs sound planning.

4. DO NOT expect impractical results

You must be having great results in mind when you kick-start your business partnership. There is nothing wrong in setting high goals but be realistic in what you expect as a result of the partnership. Also, don’t expect too much from your partner. It will take some time before you can get great results out of your new deal.

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5. DO NOT have equal stakes in the partnership:

You might think that I’m confused, that maybe I meant to say the opposite. How can you be partners without having equal stakes in the business? But trust me when I say this, behind every successful business, there is ONE boss. Do enter a partnership but don’t keep it 50/50. Try to keep a different ratio so that you know who to refer to when there needs to be an ultimate decision made.

6. DO NOT expecting relationships to survive the breakup of partnership

If the partnerships breaks, your relationship will break too, whatever it was before you entered into the partnership agreement. If your partner was previously your friend or relative, chances are high that if anything goes wrong in business, your relationship won’t go back to its previous state, at least for a while.

7. DO NOT neglect getting legal advice

Legal advice is a must in all situations. Whether it’s a business matter or any issue pertaining to the partnership, you should get proper legal input. This will help you in avoiding issues and confusion. There are various legal intricacies that are difficult for a common businessman to understand so it is always better to consult the expert. This way you will reduce a lot of future issues and possible losses.

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8. DO NOT avoid planning an exit strategy

You might not agree with me here at first. After all, why would anybody want to thinking of leaving when they are at the outset of something that looks so promising? That is the case with most partnerships, and if the business ends up failing, the partners don’t know how to tackle the myriad issues that come with getting separated. Keep everything clear and well-documented and know what you’re going to do should the business go belly-up unexpectedly.

If you follow the above advice, you are sure to avoid many of the most common mistakes committed by the partners in a business. If you have any of your own tips, please let us know in the comments section below!

Featured photo credit: Kristovskis-meeting-89.jpg/Baltic Development Forum via flickr.com

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Lianne Martha Maiquez Laroya

Lianne is a licensed financial advisor, Registered Financial Planner, entrepreneur and book author.

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Last Updated on March 29, 2021

5 Types of Horrible Bosses and How to Beat Them All

5 Types of Horrible Bosses and How to Beat Them All

When I left university I took a job immediately, I had been lucky as I had spent a year earning almost nothing as an intern so I was offered a role. On my first day I found that I had not been allocated a desk, there was no one to greet me so I was left for some hours ignored. I happened to snipe about this to another employee at the coffee machine two things happened. The first was that the person I had complained to was my new manager’s wife, and the second was, in his own words, ‘that he would come down on me like a ton of bricks if I crossed him…’

What a great start to a job! I had moved to a new city, and had been at work for less than a morning when I had my first run in with the first style of bad manager. I didn’t stay long enough to find out what Mr Agressive would do next. Bad managers are a major issue. Research from Approved Index shows that more than four in ten employees (42%) state that they have previously quit a job because of a bad manager.

The Dream Type Of Manager

My best manager was a total opposite. A man who had been the head of the UK tax system and was working his retirement running a company I was a very junior and green employee for. I made a stupid mistake, one which cost a lot of time and money and I felt I was going to be sacked without doubt.

I was nervous, beating myself up about what I had done, what would happen. At the end of the day I was called to his office, he had made me wait and I had spent that day talking to other employees, trying to understand where I had gone wrong. It had been a simple mistyped line of code which sent a massive print job out totally wrong. I learn how I should have done it and I fretted.

My boss asked me to step into his office, he asked me to sit down. “Do you know what you did?” I babbled, yes, I had been stupid, I had not double-checked or asked for advice when I was doing something I had not really understood. It was totally my fault. He paused. “Will you do that again?” Of course I told him I would not, I would always double check, ask for help and not try to be so clever when I was not!

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“Okay…”

That was it. I paused and asked, should I clear my desk. He smiled. “You have learnt a valuable lesson, I can be sure that you will never make a mistake like that again. Why would I want to get rid of an employee who knows that?”

I stayed with that company for many years, the way I was treated was a real object lesson in good management. Sadly, far too many poor managers exist out there.

The Complete Catalogue of Bad Managers

The Bully

My first boss fitted into the classic bully class. This is so often the ‘old school’ management by power style. I encountered this style again in the retail sector where one manager felt the only way to get the best from staff was to bawl and yell.

However, like so many bullies you will often find that this can be someone who either knows no better or is under stress and they are themselves running scared of the situation they have found themselves in.

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The Invisible Boss

This can either present itself as management from afar (usually the golf course or ‘important meetings) or just a boss who is too busy being important to deal with their staff.

It can feel refreshing as you will often have almost total freedom with your manager taking little or no interest in your activities, however you will soon find that you also lack the support that a good manager will provide. Without direction you may feel you are doing well just to find that you are not delivering against expectations you were not told about and suddenly it is all your fault.

The Micro Manager

The frustration of having a manager who feels the need to be involved in everything you do. The polar opposite to the Invisible Boss you will feel that there is no trust in your work as they will want to meddle in everything you do.

Dealing with the micro-manager can be difficult. Often their management style comes from their own insecurity. You can try confronting them, tell them that you can do your job however in many cases this will not succeed and can in fact make things worse.

The Over Promoted Boss

The Over promoted boss categorises someone who has no idea. They have found themselves in a management position through service, family or some corporate mystery. They are people who are not only highly unqualified to be managers they will generally be unable to do even your job.

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You can find yourself persistently frustrated by the situation you are in, however it can seem impossible to get out without handing over your resignation.

The Credit Stealer

The credit stealer is the boss who will never publically acknowledge the work you do. You will put in the extra hours working on a project and you know that, in the ‘big meeting’ it will be your credit stealing boss who will take all of the credit!

Again it is demoralising, you see all of the credit for your labour being stolen and this can often lead to good employees looking for new careers.

3 Essential Ways to Work (Cope) with Bad Managers

Whatever type of bad boss you have there are certain things that you can do to ensure that you get the recognition and protection you require to not only remain sane but to also build your career.

1. Keep evidence

Whether it is incidents with the bully or examples of projects you have completed with the credit stealer you will always be well served to keep notes and supporting evidence for projects you are working on.

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Buy your own notebook and ensure that you are always making notes, it becomes a habit and a very useful one as you have a constant reminder as well as somewhere to explore ideas.

Importantly, if you do have to go to HR or stand-up for yourself you will have clear records! Also, don’t always trust that corporate servers or emails will always be available or not tampered with. Keep your own content.

2. Hold regular meetings

Ensure that you make time for regular meetings with your boss. This is especially useful for the over-promoted or the invisible boss to allow you to ‘manage upwards’. Take charge where you can to set your objectives and use these meetings to set clear objectives and document the status of your work.

3. Stand your ground, but be ready to jump…

Remember that you don’t have to put up with poor management. If you have issues you should face them with your boss, maybe they do not know that they are coming across in a bad way.

However, be ready to recognise if the situation is not going to change. If that is the case, keep your head down and get working on polishing your CV! If it isn’t working, there will be something better out there for you!

Good luck!

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