A Case for Business Partnership
I’m writing this review because I think there’s a lesson to be learned in “Business Partners Can Enrich or Ditch a Start-Up”. The lesson is that a business partnership has the potential to more than double the power of each individual. The objective of a partnership should be to be bigger, better, or stronger than each partner alone. A strong partnership can be highly successful.
In her article, Laura Petrecca covers the good , the bad and the ugly parts of a business partnership. She quotes Barry Nalebuff, a Yales School of Management professor, who co-founded Honest Tea with former student Seth Goldman. He says “his partnership helped propel Honest Tea from $250,000 in sales in 1998 to $13.5 million by 2006. In 2008, Coca-Cola purchased 40% of the firm.” That’s quite a success story.
Laura’s case for a partnership is the extra skill set a partner provides, if done correctly. “With a company comrade, there is always someone to brainstorm with, to share work duties and, of course, to help carry the financial burden. An agreement covering the ownerships structure, financing and division of duties is a must”. And be sure to address contingencies like what happens if a partner becomes disabled or dies.
Laura includes examples and tips on handling issues between married partners, as well as family and friend partnerships. Reporting on two high school friends who formed a partnership, she quotes “Things have been a little rocky, but we’ve managed to stay afloat, …I think (the troubles) have helped our business get stronger and our friendship get stronger.”
