What to look for in a business partnership

Just like a marriage, a business partnership is a joining of two people working towards a common goal, sharing the same values and vision before it can move forward. These partnerships however, can take a variety of forms, ranging from joint ventures to long term commitments. Here are some tips on what makes a strong business partnership:

Sharing a common vision: It’s extremely important to define where you envision your business to be. Ask yourself questions such as; what type of clients do you want and what kind of service/product you’d like to offer? If your vision of the company is different than that of your partner, you will encounter problems down the road. To avoid this, sit down with your partners and discuss where you see the business heading. Ask yourself, what drives you and excites you about the business? Do not leave the table until you’ve come across an agreement.

Know what you bring to the table: Make sure that your partner has a skill set that is complementary to yours. By having an honest discussion on both your strengths and weaknesses, this will help you understand if both of you can create a successful partnership or require someone to fill in the gap.

Create both individual and company goals: Start creating company goals and then your individual goals. Your individual goals should support company goals. By measuring and holding each other accountable in achieving them, you should have no problems in being committed to the long term success of the company. It is also important that you meet on a weekly basis to review the status of your goals and discuss any challenges that may have come up.

Nip problems in the bud quickly: Like any marriage, partners will argue. To make it a successful partnership, what’s important is how you resolve those issues. Instead of letting a problem or an issue affect you or fester, make sure that you immediately discuss them with your partner. By meeting regularly to discuss this, everyone can address their concerns, create a plan to solve it, and find a resolution quickly.

Create accountability: This is the most important aspect of any business partnership! One of the major issues between partners is a lack of clarity around job responsibilities. Without clearly defining your tasks and responsibilities, there will be some confusion on who is actually running the business. So ask yourself these questions: Are your tasks and responsibilities clearly outlined? Do you know what your job is, what you’re responsible for and how you’re measured? All tasks should be clearly defined and assigned. Make sure that they support the long-term company goals and should also include clear metrics that measure the success of the job. This will measure your progress and help you be accountable to yourselves, to each other and to the business.

Reasons for creating an advisory board for your business

One common problem that entrepreneurs face is the problem of finding a group of peers who understand the challenges of running a business. Sometimes, with the constant battles of putting out fires, solving problems on a daily basis that they sometimes forget they need to take a step back from the business and deal with larger strategic issues. This is where an experienced board of advisors can come in and provide a sounding wall to vet ideas and strategies that will benefit the business.

Advisory boards are such a great tool that no small business should be without one. It’s like having a group of experienced consultants working for your company, those who can provide you with their:

• independent perspectives,

• experience,

• special skills,

• and network of connections to your company.

Is creating an advisory board right for me?

Although there are numerous benefits to having an advisory board, it does take a lot of planning and determination to create one. As an owner, you must be aware of confidentiality issues – to be able to trust that your advisors have your best interests at heart and not divulge company secrets. Likewise, you must be ready to communicate the issues that your company face, such as operations, employee problems and even opportunities. Without open communication from both yourself and the board, it will be very difficult for your business to benefit from this collaboration. Of course, when you recruit for an advisor, the person you want has to be capable of handling sensitive issues and confidential information.

For your advisory board to be effective, you must create guidelines in these areas:

Responsibilities – You should create a formal job description for everyone involved in the board. By clarifying their duties, there will be no overlap and misconceptions on their duties. When you recruit, be aware of what your organizational needs are, so you have the right expertise available.

Meetings – You should outline the frequency, length and location of your meetings. Remember, your advisors are also busy, so you should leave some flexibility in meetings to accommodate their schedules.

Compensation – Be clear on how you plan to compensate your advisors. Will you compensate them for attending meetings? And how will you do it – with cash or stock? You should be upfront about this – remember that your advisors are helping you out of their busy schedule.

Having an advisory board is a huge benefit to your small business, provided there is a clear direction and is supported properly by yourself and your company. It will allow your small business to compete against larger competitors by working with talent that might not otherwise be available.

If You Fail, Try, Try Again!

Legendary football coach Vince Lombardi once said, "Winning isn't everything; it's the only thing." While the coach may have been an inspiration to his players, was he also stating a mantra for everyday life?

As children, we often were told by parents and teachers to learn from our mistakes. Would that life were so easy to enable us to succeed after every failed attempt. Anyone who has ever established a business will attest to the fact that the goal of success is not always realistic. Business is a mélange of so many details; many of which are beyond our control yet have a direct influence on our business. The fact is that winning all the time simply is not possible (with all due respect to Coach Lombardi). The question is what you do with the failure. Perhaps it is better to quote from the Coach who also said, "The difference between a successful person and others is not a lack of strength, not a lack of knowledge, but rather a lack of will."

Canadians often compare themselves to their neighbours to the south. Yet, despite the many similarities, Canadians and Americans differ greatly in their respective business cultures. In both Canada and the U.S., for each business success story, there are dozens of failures. In either culture, entrepreneurs prepare and plan, hoping that they will be the next Fortune 500 leader or, at the minimum, establish a profitable business. Some succeed, some don't. The different reactions, though, are startling. Canadians tend to view a business failure as the end of the road. Americans, on the other hand, accept failure as part of the learning cycle and build upon the knowledge gained. The Canadian accepts his fate and the American drives forward.

Canada may be recovering well from the recession. Yet, it seems there is still much that can be learned from the American business community.

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How to Use Failure to Your Advantage

The word "failure" has negative connotations. It is hard to think of anything positive when discussing failures. Yet, many business leaders will tell you that failure is not the end of the world, nor is it only negative. While a business failure certainly implies setback, it also leaves the door open for improvement, change and opportunity.

American business leaders have embraced the opportunities presented by failures while Canadians lag behind in this respect. The inability or unwillingness to compete is a common denominator of many Canadian business disasters. One of the first lessons to be learned from a business failure is not to cut back but, rather, to dive into the marketplace and compete with all your might. Learn from failure and allow it to be the catalyst that is your driving force. In California's Silicon Valley, business has embraced the concept of "failing well." You made good decisions but circumstances were beyond your control. If you are good at what you do, you'll eventually succeed. In Canada, the opposite is more common. If your business attempt failed, you'll have a very tough time securing capital for another venture.

Failure in business can be one of your greatest teachers. Successful corporate leaders have learned from their mistakes and impart that wisdom to their employees as well. By sharing this wisdom with one's staff, it carries the message that even the boss is not perfect. Moreover, it encourages staff to also learn from their mistakes. Every successful mega-company started small and did not achieve greatness overnight. When your staff appreciates the growing pains of a company, they can become part of the driving force to continue propelling the business forward.

This doesn't mean that one should create a culture that focuses on failure. Just the opposite is true. A business environment should strive for success. Ultimately, that is the goal that we wish to achieve. However, every successful path has setbacks and failures. Learn to appreciate that none of us is perfect and we can learn something new everyday. The only way to avoid failure is to stop trying to achieve. Use every setback to your advantage and ultimately you will win.

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