We’re frequently reminded that many new ventures fail within their first three years of operation because
of poor financial management skills, an unrealistic business plan and inadequate research in terms of area, competition and market demand, among other factors – but we very seldom hear how many good business ideas bit the dust because of conflict between its partners. It’s probably a statistic at least as high as any other factor for entrepreneurial failure.
Starting a business is a lot like entering matrimony. You and your partner are both in it for the long haul and should be equally committed to the venture. You should both know exactly what this operation aims to achieve, who it’s targeting, what goals you’re hoping to achieve over what timeframe, who you’ll be employing and what they’ll be paid.
Too many people go into business based purely on a school, university or casual friendship during which they’ve daydreamed about opening a venture, but have never actually experienced each other’s capacity for (or competence in) work. It’s not enough to assume that because you both enjoy fashion, cooking or interior design, that’s a strong enough basis on which to form a commercial partnership. As in a marriage, trust is the most important ingredient in a business relationship.
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