Excerpt from Introductory
Chapter:
The traditional
model of partnership is changing radically as technology has spawned
virtual partnerships we wouldn't have imagined ten years ago. I interviewed
several partners who are working in separate geographic locations, as
one company. In some cases, they met on the "net" and they've never
even met in person. They rely entirely on modern technology to connect
them toward achieving their goals. Whereas in the past, most partnerships
formed in mid-adulthood, entrepreneurs are now partnering right out
of highschool or college, throughout adulthood, and into retirement
years. In the past, with the exception of family businesses, most partners
were in the same age group - basically homogenous peers. Now partners
may span fifty years in age, and come from backgrounds as diverse as
the United Nations. They may work with just one other individual, or
several, with or without employees, out of a home-based business or
a large manufacturing plant. Partners may call themselves partners whether
they have a traditional 50/50 equity arrangement, or a 90/10 split of
responsibilities and profit.
It is no longer
unusual for a man and woman - not married to each other - to be working
as equal partners in a business. That notion was practically unthinkable
thirty years ago. Now, the woman may leave her husband and children
at home for days at a time, while she travels with her male and female
counterpoints all over the world. The evolution of male/ female partnerships
reflects our changing societal norms for marriage, work, and raising
a family.
Many entrepreneurs
talk of a paradigm shift happening on the planet and in business. Traditional
methods that value gaining control are giving way to collaboration and
sharing control, in an effort to succeed in the new global marketplace.
The internet encourages connections all over the world. Partnering opportunities
are always available for those who are open, and seeking such a vehicle
for personal and professional growth. Working in a joint venture, partnering
alliance, or partnership is fast becoming the norm, rather than the
exception, for many small business owners. Besides enhancing profitability,
it can also be fun.
Families are returning
to the working model prevalent at the beginning of the century, joining
together to support themselves in a family business. Husband and wife
partnerships are becoming so popular, it encouraged me to devote an
entire book to entrepreneurial couples issues: HONEY, I WANT TO START
MY OWN BUSINESS, A PLANNING GUIDE FOR COUPLES (HarperBusiness '96) I've
chosen to write LET'S GO INTO BUSINESS TOGETHER for business partners
who are not married to each other. If you are an entrepreneurial couple,
you'll certainly be able to draw wisdom from this book, but be sure
to pick up HONEY, I WANT TO START MY OWN BUSINESS, for an in depth exploration
of how to successfully merge business and marriage.
Part of my job
as the author of this book is to give you enough illustrations of successful
business partnerships, that you feel encouraged on your journey. Yes,
there are thousands of partner disaster stories to be heard. Like any
intimate relationship, staying on course requires patience, sacrifice,
compromises, and a bit of good luck. Not everyone has what it takes,
or selects the appropriate partner to go the long haul with. But hopeful,
optimistic stories about partnership abound. Here is one example, out
of hundreds I've heard, that offers a positive perspective on partnership:
My partner Gail
and I have grown a direct mail ad agency to 30 million in sales over
a twenty five year period. It is unheard of to have such a successful
partnership in advertising, because most people in this industry have
such big egos. We grew the business together, struggling from the very
beginning. At one point it was so bad we had to share one car - Gail's
old, beat up volkswagen which we called the company car.
The key to our
success is mutual respect, admiration and loyalty. We have similar values
about the way customers and employees should be treated. We have integrity,
and we hold up our end of the bargain. Over the years we've each considered
getting out of the business; the long hours has taken a toll on our
families. In the end, we both keep sticking it out because our partnership,
and what we've built together, is just too valuable to give up.
The other part
of my job is to better equip you for some of the difficulties of partnership.
Imagine you and your partner(s) are standing at the foot of Mount Everest
- or perhaps a mountain that's little less challenging if you want to
be optimistic. This book won't get you up to the top by itself. You'll
have to do the hard work, train to get into superb physical condition,
and fight your inner demons when you feel like quitting. LET'S GO INTO
BUSINESS TOGETHER is like a close friend who comes along on the expedition
with you, giving you solid advice that will make your excursion less
risky and more enjoyable.
Working in partnership
requires different strengths, skills, and training than being successfully
employed by a corporation, or prosperously self-employed as a sole proprietor.
Using the mountaineering analogy, suppose you were a long distance runner,
and then you switched to mountain climbing as your sport of choice.
Your physical and mental conditioning from long distance running would
give you a good head start. But long distance running is a solitary
endeavor, much like being a sole proprietor. Your achievements as a
long distance runner would only go so far towards preparing you for
mountain climbing. You'd have some new skills to learn, and it might
take awhile before your competence as a mountain climber was as well
developed as your dexterity as a marathon runner.
If you are new
to business partnering, respect the learning curve and know that it
may take you several years to master the art of partnering well. If
you are a seasoned veteran of partnerships, you know from experience
that the learning never ends when you are in partnership. Successful
partnership centers around working in relationship, with your partner,
clients, employees, and vendors, and requires endless personal growth
and dedication to improvement. With every new partner, you'll need to
change some personal habits, tolerate differences in workstyle, accept
criticism and give up some control. What worked for one partner might
not work at all for your next. Partnering is a life-long course you
never graduate from - if you choose to do it well. Partnering favorably
is, however, a learnable skill that you can dedicate yourself to achieving.
Ideally, you and
your current or prospective partner will each read this book and complete
some of the recommended exercises. If that isn't a viable alternative,
you can still have enormous impact on the success of your partnership
by doing this work alone. You can refer back to this book at several
stages during your partnership, from the initial selection process to
the dissolution. Even if you are currently in partnership, you can still
gain valuable knowledge from reading Chapters One through Five, which
are dedicated to solidifying the beginning stages of partnership. Even
if you and your partner scarcely argue about anything, you will find
useful communication tools in Chapters Six and Seven, to help you converse
more effectively. Even if you aren't married, and neither is your partner,
Chapter Eight, - Defining your Spouse's Involvement - will give you
clues about the kinds of issues that could arise if either of you ever
married. If you are just starting your partnership and termination is
the last thing on your mind, you'll still better prepare yourself for
your legal agreements if you read Chapter Nine, Ending your Partnership
- Issues to Consider. No matter where you are in your partnership process,
or where your partner exploration will lead you, every chapter in this
book has something to offer.
The most powerful
teachings of this book are revealed in the partner stories, gathered
from interviews that took place for a full year with 120 individuals
who are currently, or have been, in a business partnership. It is a
blessing that we can learn from their experience and 20/20 hindsight.
Imagine you had the opportunity to sit with 120 entrepreneurs for a
couple of hours each, and you could ask each one: "What do you wish
now, you could have known then?" What are the greatest rewards you have
received from being in partnership?" Their answers are in this book.
You'll find these vignettes disguised and composited to protect the
privacy of those who shared their stories. All personal stories however,
are based on my research. In many cases, they are word for word what
was said to me, with only the identities changed. Remember that, when
you read a story that seems too incredible to believe. Yes, some of
these stories, no matter how fabulous or horrific they sound, happened
to real folk like you and me!
Welcome to the
base of the mountain. Got your gear ready? Mentally psyched? Physically
prepared? OK - Let's begin the climb.
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