Entrepreneurs: everything you need to know to choose the right partners

Setting up a business on your own is one thing, but having several partners is even better! Many entrepreneurs are looking for partners when their business is growing, or even when it's being launched.

It's undoubtedly a beneficial strategy to fill a need for skills, equity capital, or the need to work as a team. However, almost two-thirds of companies fail because of conflicts between co-founders!

This figure alone illustrates just how difficult it is to surround yourself with the right people. On the contrary, a successful collaboration is synonymous with numerous skills synergies, which in turn generate a visible improvement in your performance.

Let's take a look at the right questions to ask yourself when considering a partnership to create or expand your business.

Why are human relationships at the heart of corporate relations?

A company is built on a web of human relationships.

They are the driving force behind your company's development and growth strategy. Human relations go far beyond getting along well in the workplace on a day-to-day basis, and help your company's various units to work together to achieve your objectives.

Human relationships are not only functional, but also subjective!

This dimension is all too often overlooked when choosing your partners. Your collaboration is at the service not only of the company, but also of the other partners!

Everyone has legitimate requirements, which are sometimes just as important as your strategic challenges. It's a proven fact that technical, scientific or administrative skills alone are not enough to find a place in a company.

The personal dimension is just as important as the professional one

Integration into the company's culture is a criterion that is increasingly taken into account these days.

The people who work in a company are looking for empowerment, security and recognition. The right choice of associates provides these three qualities, as trust and respect reign supreme.

To achieve this result, the role of the manager is crucial. He or she must set the best possible example, be open-minded, assiduous and listen to employees.

A company's security depends largely on the efficiency of its human resources.

Is partnering with a friend really a good idea?

Sometimes you think you know someone. But do we really know them professionally? Take a look around your personal network (family, friends, former colleagues, service providers, suppliers, etc.) and identify who could become your business partner.

More often than not, it's advisable to team up with someone you already know professionally, and whose skills you already know.

Your objective is to build a relationship of trust around a shared vision of the company.

Trust is essential, especially in complicated situations. True trust is a long-term process, and good collaboration is measured on a daily basis.

Ultimately, a successful organization must create synergies of skills in a quality working atmosphere.

There are three key functions in every company: the entrepreneur, the manager and the technician.

Which profile do you belong to? What's your partner's profile? Play the complementarity card to optimize your company's success.

While 83% of business owners believe that synergy of skills should be the primary criterion for choosing a partner, 45% say they met their partner through family or friends.

How can you prepare your company to welcome a new partner?

Collaboration requires active preparation. A number of essential questions need to be addressed:

• How do you distribute the company's capital? The arrival of a new partner obliges you to grant him shares in the company. The new partner may also inject new equity. In both cases, you'll need to plan for an equitable distribution. Sometimes, dividing the shares equally can lead to deadlock in the event of disagreement.
• What is everyone's role? Each partner must be clear about his or her area of responsibility. No responsibility should be left to chance, as this can lead to conflicts later on.
• How much remuneration should be paid to each individual? This is often the most delicate question. It must be set according to the qualifications of the partners, their responsibilities, the amount of time they devote to the company, etc.

Even if you're just starting out, don't forget to anticipate all the conditions governing the future of your collaboration.

Indeed, new conflicts often arise as the business develops, forcing partners to share new responsibilities.

To protect everyone's interests, we recommend that you draw up a partnership agreement from the outset.