Partnered PR

One of the biggest pitfalls of being in business for yourself is having a business partner. While it can be a very beneficial joint venture, a partnership can bring challenges not found if you were to go into business by yourself.

While a joint venture lessens your own liability, it can also increase liability. For example, if business partners are not communicating (or not communicating often), the brand and the customers will feel it. The professional tension will pour over onto your clients, potential clients, and within your industry. A business can’t be built if there is a lack of communication. Even if both partners disagree on certain issues, not talking at all can be detrimental for all involved.

Business partners have to treat one another like they are their most important client.  I have one great example of how this strategy went very wrong. I knew two women who were best friends.  In 2007, when the Bottle Service business was booming in Vegas, they had enough capital and connections between the two of them to launch their own VIP business. This is when a bottle of vodka would sell for $5k in Vegas.  So, one handled the marketing and meetings and one handled hosting the clients at the events. Seemed simple enough, right? After all, it was very easy money.

The problem with the two women ended up being communication. The marketing woman would sell packages and book groups. The hosting woman would confirm the groups and make changes to the reservation. She wouldn’t tell the marketing person or the nightclubs. What do you think happened? There were misbooked and upset clients, the women bickered back and forth as each problem arose, and their  $14k weekly profit margin quickly sank. That’s over 40k a month lost to miscommunications. Never mind the damage it did to their brand.

The point is, business partners have to talk. They have to work through the difficult times and the good times.  They should be in constant contact with one another to discuss visions, options, concerns – what ever. The second communication fails, the business is dead.

If you are considering bringing a partner into your company, be careful. You truly have to know the other person. Even if he or she is a friend, consider what they are like at their day job before they come aboard to your business. I also recommend setting up strict contracts where communication is mandatory or the other party is out of the company-period.

Until tomorrow,

COCO the Ceo