Why Partnerships Succeed - Or Fail

Date: 08/06/2010

A business partnership can be just like a marriage - but may be harder to get out of!

A business partnership, whether in a franchise arrangement or any other, can be like a marriage says Greg Nathan of the Franchise Relationships Institute. And he adds that, these days, it may be even harder to get out of. As with marriage, he says, mutual respect and trust are key ingredients of a successful partnership. Make sure from the start that you're compatible with your intended partner, and look for complementary qualities and abilities to your own.  The honeymoon period will wear off, and bad habits will start to cause niggling problems - it's important then to remember that you're in the partnership for commercial advantage. A clearly-written contract is important if problems arise, but so is the "psychological contract", embodying fair play, respect and trust. And remember it's better for the business - and much cheaper - to sort out your problems through discussion or mediation, without resorting to the courts.