By Fernando Berrocal

In the business ecosystem in today’s world, building a strong partnership is very important for the future success of a new startup. Business partnerships may be very gratifying experiences that help develop a successful business. However, know that business relationships do not always end in a happily ever after story. The cold numbers indicate that around 90% of startups fail. However, that’s not the only number to check; it's also a fact that up to 70% of business partnerships fail. That demonstrates the importance of constructing a strong business partnership.

While the risks are substantial, the advantages are as well. When you agree to form a business partnership with a co-founder, you'll both bring your unique set of mistakes and triumphs to the table, and combining your talents can help you avoid some of the pitfalls of entrepreneurship. Working with a co-founder may also expose you to fresh ideas, help you grow your network, and provide you with manufacturing facilities or equipment. While you shouldn't be afraid to jump into a prospective business relationship, there are a few things to think about such as:

Have a Common Business Vision and Values: If you want to establish a microbrewery but want to focus on small-scale, high-quality production but your partner wants to expand internationally, you'll have a lot of conflicts. Take the time to put out your business visions and discuss them with your potential partner. If you appear to be on the same page on important issues such as quality vs. quantity, ecological vs. industrial, and purpose-driven vs. profit-driven, I believe you have a high chance of working together.

Define Short and Long-Term Objectives: It's just as vital that you and your co-founder have similar business visions and beliefs as it is that you and your cofounder can agree on short and long-term objectives. In a year, where do you want to be? How about five or even ten years? Beyond? If you want your startup to succeed, at least one of you needs to be a bit of a visionary.

Hold Workshops for Strategic Planning:  Disruption is a danger that all businesses face. That's because technology and markets are always changing, and you want a partner that can help you stay ahead of the curve. When your business has to make changes to stay afloat, and your partner refuses to investigate business model innovation methods, you may discover that your strategy has gone to failure, along with your business relationship.

Communicate Often: The more frequently you and your co-founder meet to discuss your business, the greater your chances of avoiding future disagreement. If you share information often, including both stumbling blocks and accomplishments, you'll stay on the same page, which is exactly where you want to be. You should also check in on each other's degree of participation and happiness with that contribution regularly.

Be Open and Honest: The co-founders should be able to openly disclose all of the startup's financial transactions, contracts, and policies. Whether "Partner A" is in charge of finances and "Partner B" is in charge of operations, both partners should have equal and complete access to all information concerning the business' solvency and legality. Knowledge is power, and if neither partner has the necessary information to make smart judgments, the organization will be endangered.

Work Together to Solve Issues:  When you've been given responsibility for a certain area of the organization, it might be tempting to try to solve an issue on your own. Involving your co-founder in a problem-solving situation, on the other hand, will strengthen your capacity to collaborate, develop trust, and increase the likelihood that the problem will be solved in a long-term way that safeguards your startup.

Have a Contract in Place:  In a court of law, saying, "We shook on it" isn't going to cut it. You and your partner may also have a misunderstanding about what rights and obligations you and your companion are individually entitled to and/or obliged to perform. It will be easier to pronounce it out if you put it all in a contract. Remember to keep the contract up to date when new information becomes available.

Conclusion: Two people came together with the same goal and worked to bring that vision to reality in some of the most amazing entrepreneurial stories of the modern age. The perfect co-founder may help you push your startup to new heights you couldn't have reached on your own. To stay grounded while reaching for the stars, follow the suggestions above.

Ready to bring your startup to the next level? Apply to MassLight’s next batch. MassLight supplies capital and a dedicated tech team. We take equity in return. Have questions? Refer to our FAQ page.

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