Why Business Partnerships don’t work

Why business partnerships don't work often - leadership creativity

Lack of alignment is why business partnerships don’t work

Understanding why business partnerships don’t work is essential to maintaining the partnership. As partners in a business, it’s critical to take the time to really understand what motivates and drives your partners, as well as what frustrates them.

Studies have shown that the more we like the people we work with, the higher our level of satisfaction, and the better we work as a team. So having a deep understanding of each business partner’s needs and wants can build an enduring and empowering relationship.

The success of a partnership relationship depends on how each partner contributes to the process of understanding, and empathising with, others.

Anticipate and plan for issues to prevent business partnerships not working

Why business partnerships don't work - leadership creativity

Often why business partnerships don’t work is that like any relationship where you spend large amounts of time together, there will inevitably be some level of discord over time in a business partnership. Knowing that your relationship won’t be all plain sailing, it’s a good idea to agree on how you will discuss, address and resolve conflicts when they arise.

Do you have a plan to resolve issues you can’t agree on? Do you have agreed contingency plans in place if one of you is unable to work in the business unexpectedly? If one partner is somehow unable to work in the business, will they still be paid?

It’s invariably better for the business if you can agree on an approach to these types of issues before they happen. The stress of dealing with a crisis, creating a process to resolve it, AND running your business can be overwhelming. Decide in good times what will happen so you can handle the challenging times more productively.

Be proactive and practical to stop business partnerships not working

It’s great to know what needs to be in place to maintain alignment with your partners, but how do you practically go about this if you want to stop a business partnership from not working?

We recommend frequent alignment workshops between you and your partners, starting with a partner strategy alignment workshop. This workshop enables you to check in on and update your business purpose, vision, values and strategy. 

Subsequent workshops can then develop your expectations for each other, define your behavioural standards and flesh out how you will manage risks and challenges as they arise.

How frequently you and your partners hold alignment workshops will depend on the stability of your business and the markets you operate in. However, at minimum, you should review your strategy and approach annually.

When was the last time you discussed these topics and really considering why your business partnership may not be working? 

If it’s more than a year, or you have never aligned on these items, your workshop is overdue!

If you would like some more information on why business partnerships don’t work and how to successfully develop your business partnership, take a look at our Partnership Creativity program or download our free “The 5 Steps to a Winning Partnership” Guide