Most small businesses start as partnerships, but break down within a year. Friendship alone is not necessarily a good basis for a successful business partnership. Relationships which work well when people are colleagues, where there is support from Managers, Assistants, IT and other functions, often become strained when, as entrepreneurs and decision makers at the helm of a business, such support networks are not available.
As with marriage, business partners soon get to know their fellow partners and directors well, when they are effectively living together. Where your fellow partner or director may be in addition a family member, your other half, or a spouse, the relationship can be even more testing.
The key to success is honest and transparent communication, and a clear understanding and recording of roles and responsibilities, and a shared common vision. Consider a Prenuptial Agreement to also detail your views regarding future exit strategies, acquisition or merger, and financial control.
Shared goals require shared decisions, and heated debate can be healthy, but keep any conflict to the boardroom, and maintain a united front once boardroom decisions are over.
Perhaps the 'civil partnerhip' between David Cameron and Nick Clegg holds valuable lessons for business leaders, but did they have a Pre Nup?
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