How to Create World-Class Business Partnerships
Creating successful business partnerships is a complex endeavor that requires careful consideration, intentionality, and clear communication. In a recent episode of the Untapped podcast, Briony McKenzie, founder of Untapped, delved into the nuances of forming effective business partnerships. Here are the top insights from Briony’s discussion, packed with actionable advice and thoughtful reflections.
1. Understand the Why and Context of Your Partnership
The foundation of any successful business partnership starts with understanding the “why” behind it. Briony emphasizes the importance of entering a partnership from a place of empowerment rather than dependency. Evaluating your motivations and ensuring that the partnership is based on mutual strengths and a shared vision is crucial.
"Business partnerships are challenging... you need to have a really good why and reason if you're going to take one on".
Starting and managing a business partnership involves navigating two visions, values, and revenue models within a single enterprise. The initial stages can be particularly taxing as partners strive to align their goals and strategies.
"At the very same time, business partnerships are incredible. You can make a greater impact".
When done right, partnerships can amplify your business potential, bringing diverse strengths and perspectives to the table. Briony shares her experience of co-founding a company with six other women, highlighting the phenomenal achievements they made possible through effective collaboration.
2. The Challenges and Rewards of Partnerships
Briony acknowledges that while partnerships can be challenging, they also offer incredible opportunities for greater impact. The key is to have a clear reason for forming the partnership and to be prepared for the complexities of merging visions, values, and financial models.
Briony warns against entering partnerships for the wrong reasons, such as fear of failure or relying on the other person's established audience. "What you're actually doing inside of that narrative is pedestalling someone... And from that context, that's not a powerful context to create from". Instead, strive for an empowered context where both parties bring their strengths to the table to create something exponential.
Be radically honest with yourself about your intentions.
3. Avoid Pedestalling Your Partner
It's important not to pedestal your potential partner, as it creates a disempowered context. Instead, approach the partnership from a place of equality and mutual respect. This ensures a healthier, more balanced collaboration.
4. Spend Time "Dating" Your Partner
Before committing to a partnership, spend ample time getting to know your potential partner. This involves understanding their business, their values, and their vision. Briony likens this process to dating, where you ask deep, probing questions to ensure alignment.
The importance of thoroughly understanding your potential partner before committing. This involves not just casual meetings but in-depth discussions about visions, values, and motivations. Ask hard questions to uncover true motivations and future aspirations. "If you were dating someone you'd go out and you'd ask questions... It's the same in the business element".
This process helps ensure that both partners are aligned and committed to the same goals.
5. Define Roles and Responsibilities Clearly
One of the biggest mistakes in partnerships is failing to clearly define roles and responsibilities. Briony stresses the importance of documenting each partner’s unique strengths and how they will contribute to the business. Tools like the Enneagram and CliftonStrengths assessments can help clarify these roles.
Document these roles to avoid conflicts and ensure clarity.
6. Choose the Right Financial Model
There are several models to consider for financial remuneration:
Equity Ownership: This involves determining the percentage of shares each partner will own in the company.
Revenue Sharing: Partners agree to divide the revenue generated from a particular program or project, with percentages based on their contributions.
Profit Sharing: After covering all the costs and expenses associated with delivering a service or product, the remaining profit is shared among the partners.
Each model has its advantages, and the choice depends on the specific circumstances of the partnership.
7. Manage Risks Proactively
Risk management is a crucial element in any business partnership. It's essential to keep personal brands and assets separate to protect individual interests. By doing so, each partner ensures their personal brand remains intact and unaffected by potential partnership issues. Additionally, all agreements and terms should be thoroughly documented in formal contracts. This legal documentation provides a clear framework for resolving disputes and outlines the responsibilities and expectations of each partner. Proper risk management safeguards both parties and minimizes potential conflicts.
8. Communicate Effectively and Set Boundaries
Effective communication and clearly defined boundaries are key to a successful partnership. Setting expectations from the outset helps prevent misunderstandings and ensures that both partners are on the same page. One practical approach is to create user manuals that detail each partner's preferred working and communication styles. These manuals can include information on work hours, preferred methods of communication, and how each partner likes to receive feedback. Establishing these guidelines early on fosters a respectful and productive working relationship.
9. Regular Check-ins and Feedback
Regular check-ins and open communication are vital for maintaining the health of a partnership. Consistent meetings, whether face-to-face or via digital platforms, help keep both partners aligned with their shared goals and vision. These check-ins provide an opportunity to discuss progress, address any concerns, and make necessary adjustments to the partnership's strategy. Regular feedback sessions also ensure that both partners feel heard and valued, which is crucial for sustaining motivation and collaboration.
10. Reflect on Your Own Vision and Goals
It's important for partners to continually reflect on their own visions and long-term goals. Regular self-assessment ensures that the partnership remains aligned with each partner's personal aspirations. It's crucial not to compromise your own vision for the sake of the partnership. Instead, the partnership should enhance and complement your individual goals. Regular reflection helps you stay true to your personal objectives and ensures that the partnership supports your long-term success.
Conclusion
Creating a world-class business partnership requires intentionality, clear communication, and a deep understanding of each partner's strengths and motivations. By following Briony McKenzie’s insights, you can build a partnership that not only thrives but also brings exponential growth and impact. Remember, the key to a successful partnership is mutual empowerment, clear roles, effective risk management, and ongoing communication.
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