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What makes a strong business partnership?

On Behalf of | Mar 30, 2024 | Business Formation & Planning

A business partnership is a legal arrangement between two or more parties with the purpose of sharing business operations. The typical intent of a business partnership is to provide opportunities that would not have been available without the arrangement. For example, a business partner may be able to share clients, expertise and resources. Business partners also share liability, debts, responsibilities and profits.

A successful business partnership can lead to long-term growth and success. But, this often takes time and, most importantly, finding the right business partner. Finding the right business partner is not easy. Many partnerships fail, which can greatly impact business operations. Here are a few qualities that you may need to look for in a business partnership: 

Clear communication

Communication is key in any relationship, especially a business partnership. Clear communication can be as simple as discussing daily or weekly events and reports that may have affected the business. Many business partners schedule regular meetings to keep in touch. 

Communication is also about transparency. When business partners are honest about issues in business, it can build trust and reliability. When issues are not addressed, then they may severely harm a business’s reputation. Furthermore, partners that discuss issues with each other can resolve tension, resentment and frustration that could affect the business. 

Split responsibilities

Many business partners share responsibilities. This can help ease the burden of operating a business alone. Sharing responsibilities may not mean responsibilities are evenly divided, but it can mean partners taking on roles that suit them best. Perhaps one partner excels at talking to investors while the other is better at managing employees. 

Partnership conflicts can negatively affect a business. A business partnership agreement can address how conflicts should be resolved. It can help to reach out for legal guidance as a business partnership agreement is drafted.