A business partnership is way more complex than it seems. Business partners have to spend an enormous amount of time to take decisions together while making personal, financial, and emotional sacrifices in order to initiate growth for every business. While having a business partner comes with a set of perks; there are a few challenges as well that needs to be addressed.
Here are the top 6 challenges that entrepreneurs have to deal with while working and retaining important business partnerships. Let’s take a better look!
1. Difference in Management Styles
This is not a huge deal and can be handled maturely. In most cases, there is one partner who is strict, very task-oriented, and knows how to keep the ship sailing in all conditions. While the partner can have a laid-back attitude and more ‘chill’ which keeps the employees happy. This balance of bossy and friendly works quite fine like the ‘good cop, bad cop’. However, things can take a turn when one of the partners feels irritated with the other one’s activities.
2. Personal Habits and Activities
The rules of work-life balance do not apply to the founding members of the business partners as they have a lot of pressure on their shoulders. Just like they cannot leave the office along with employees, sometimes they can also develop personal habits of substance abuse, alcoholism, and others to relax from the peer pressure. Such personal activities can create a big crack in the business partnership especially when the other partner is strictly against it.
3. Financial Issues and Equity
Financial issues are quite common among business partnerships as not every partnership is split 50:50. Financial equity depends on the nature of the partnership but when one partner is willing to invest all, how the equity will be decided? Or, if a partner is investing a lot of time and brain in the business but not a lump of money; should he be a part of the profit or not? How will it be decided? These are the challenges and lingering tensions that often take place.
4. Boundaries
One of the biggest issues of partnership is setting boundaries. It mostly happens when professional partners also share a personal relationship and tend to set boundaries for each other. While it is important to motivate the other partner or stop him when things get overboard; setting boundaries can also lead to dissatisfaction and obstacle in free choice. That is how things can escalate among the partners.
5. Level of Commitment
Commitment is one of the highest grounds of business partnership where both partners need to come to the same ground and commitment. There should be a clear picture of what each partner is looking for and based on that, they should put in an equal amount of time and dedication which is required. When one partner is lacking in their terms, it is quite normal for the other partner to get angry.
6. Disparities in Roles and Skills
Entrepreneurs seek partners who are equally or more knowledgeable and experienced in the field. So, it is safe to say that partners with similar skill sets and knowledge are more likely to work together in peace. At the same time, if there are no differences in the skills of the partners; there are very less possibilities for business innovation and implementation of new ideas. So, the disparities in Roles and Skills are needed and also not needed at times.
Building a solid relationship with your business partner can sometimes be more difficult than marriage. So, please beware of the challenges and solve them tactfully.
