Coming up with a good idea is only the beginning of creating a successful business. First and foremost you need to take a step back and understand where your skills lie: are you a good marketer or better at finance? For any business to succeed, you need to have access to a full range of expertise, which is why working with a partner can prove very beneficial in business.
Few individuals have the full spectrum of skills required to run a business successfully without additional support. Be honest with yourself about your weaknesses and then find someone who has strengths you may lack and shares your vision. In the body, we have heart, lungs, kidneys, a brain, eyes and ears. Each organ plays a specific role and contributes to the body functioning healthily. A business is much the same.
A partner might be someone you have known for many years and developed your business concept with or someone who joins your venture further into the journey. In the early days, if you are considering bringing in additional support but perhaps can’t afford to pay them, it is worth considering offering a partnership. This might also be a viable option to attain extra funding. They may, for example, take a 20% share in the business, but don’t get too caught up on equity - it is better to own 80% of a viable venture than a 100% of something that is less likely to succeed.
When deciding to work with a partner, there are a few things you need to consider. Before you take the leap, make sure you both share common goals. Do you share the same vision for your venture? It will be impossible to succeed if you are both pulling in opposite directions. Of course, there will be times when you disagree, and everyone has their own opinions and points of views, but remember you can’t always be right and ultimately you can’t win every battle.
As partners, the reality is that you will spend a large proportion of your time together, so you need to make sure you have established a way of working through problems together. You also need to be able to trust each other implicitly, and be confident that you both have the best interests of the business at heart. Negative friction within a partnership can really derail a good business idea. You must always be open with each other about any problems and issues that may arise and face them head on.
Divide responsibilities; if one of you is particularly experienced in finance for example, it makes sense that person takes responsibility for this area. You could go as far as creating a simple framework of tasks, so both parties know what is expected from them and nothing slips through the net.
Helen Hodges and Kerry Jackman, who are recipients of loans from Start Up Loans, run BSP Wardrobe Hire and Haberdashery in Bournemouth. The partners met while studying costume and performance design at The Arts University College, Bournemouth. Hodges has a background in hospitality, and has always had a passion for sewing. Meanwhile, Jackman was wardrobe mistress, costume designer and maker for Bournemouth Shakespeare Players, as well as other local drama groups, for more than nine years.
Through their involvement in the Bournemouth amateur dramatic scene and connections to the university, they realised there was a need for theatrical costume hire and a haberdashery in the area and decided to set up their business. Both women, while passionate about sewing and costume design, have different skills. They have spent time looking at their strengths and weaknesses, and ensured they both have the same common goals for their venture. Their partnership works well as both individuals complement one another.
Business is built by people, and the more quality ones you have the better it is. Throughout my career I have worked with partners as I understand that it is impossible to have skills, knowledge or expertise in every area. Working with the right people in an effective partnership really can help take your business to the next level.
James Caan is chairman of the Start Up Loans Company. Each fortnight he tackles a different business issue. We welcome your suggestions for future topics and questions regarding your own business – please share them in the comments thread below.
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