Partnerships

A partnership is an arrangement where parties, known as business partners, agree to cooperate to advance their mutual interests. The partners in a partnership may be individuals, businesses, interest-based organizations, schools, governments or combinations. Organizations may partner to increase the likelihood of each achieving their mission and to amplify their reach. A partnership may result in issuing and holding equity or may be only governed by a contract.

As an entrepreneur, the first question you have to ask about partners is: Why do we need partners in business? There are many different kinds of partners:

# Partners who can provide capital;

# Partners who can provide technical expertise [or specialized knowledge] that you don’t have;

# Partners who can provide access to markets and opportunities;

# Partners who can provide services to your business.

You’ll need partners to undertake things you cannot do alone, and partners to share risk.

It can be very good to have partners. Even Bill Gates has partners, and continues to start new ventures and investments with partners. You just have to learn to find the right ones, and how to manage relationships with them.

Here’s one key law of partnership of any kind:

__ “Do unto others as you would want them to do unto you.”

Most of you know this as the “Golden Rule.” As a partner, you do not want to be mistreated or cheated by your partners. So don’t enter relationships with an ulterior motive. Don’t do anything that creates mistrust between you and your partners.

The spirit of an agreement is more important than the letter; never break either. Don’t act in bad faith towards your partners.

There are many excellent reasons to work in partnership, and also many bad ones that will lead to heartbreak. For a start these are key questions:

# Do we share core values?

# Do we trust and respect each other?

# Do we agree on the goals and vision to take the business forward?

# Do we agree on how we’ll use the money raised and how the profits will be distributed?

You must want to see your partners prosper because of what you’re doing together. I know this sounds obvious, but there are people who don’t want to see their partners also prospering and getting rich! If my partners are happy and prospering, I feel really good.

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Hint: Choosing the right partners is critical.

Strive Masiyiwa

Hint: Set clear terms of the partnership at the onset, discus and document clear roles, discus and document terms on exit, discus and document rights, duties, roles, obligations, ranks if any in detail.

Use an indipendent lawyer to draw up and/or explain your partnership agreement.