Wednesday, July 28, 2010

Your Partner is Your Friend and So Lack of Sales Is Not the Problem

Often, I am asked, “should I be a partner with my friend, or relative?”. My answer is “maybe”, depending on a lot of details that I am not discussing here. Let’s assume the answer in your case is “yes”. Then, what are the particular challenges you will face?

The major one is that you will act out your friendship or relationship during the course of doing business. The way to avoid that is to structure business behavior in such a way that relegates your personal relationship to secondary status during business hours.

One married couple I coached solved this aspect of their business/marriage by making strict rules about the hours when business is conducted and when they are being a married couple.

They have scheduled business meetings on a regular basis with a clear business agenda. They even schedule an annual retreat to do the yearly reevaluation of where they’ve been and where they want to go.

Another partnership business owned by two friends, had been communicating very casually with each other about the business, when we began coaching. Their lack of clarity trickled down to employees who floundered rather than produced. They identified the problem as lack of sales, when, in fact, upon closer examination it became clear that the lack of sales was only a symptom of something more systemic. The problem was their friendship, which they put first throughout the day. They didn’t discuss their systems in a business-like manner, and as a result there were no clear instructions, expectations, or even numbers for their sales team.

Of course, once you know enough about each other and yourself, a partnership with a friend can be very successful. Take the steps I’ve been discussing in most of my newsletters to establish a clear-cut partnership agreement. Make sure your communication is detailed and very clear to avoid misinterpretations and misunderstandings. Keep your friendship second, and for after hours. Step into the role of leadership. Stay on top of all information about your business at every level.

Hire an expert to help you stay focused and point out your blind spots. And, enjoy your success!

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