Why business partners fail

1. Hit Hard Times: Plain and simple, some people just can’t take the heat. The problem is, it’s hard to know who can or can’t take the pressure of building a business during those lean months (sometimes years) when you are trying to get the business off the ground, without actually going through that tough period with them.

My advice: don’t partner with anyone who has had a steady paycheque for more than a couple of years. Don’t partner with someone who has a family if you don’t have one yourself. And don’t partner with someone who is accustom to the finer things in life.

2. We all know this one too Many Cooks in the Kitchen: If partners have identical skill sets, the business is doomed. Time will be wasted, resources depleted, and conflict will likely be constant.

Every restaurant only has one main chef. And that chef isn’t the same person producing the marketing content, training the serving staff, and selecting the decor. The same concept goes for any other business. Form a partnership with someone who is excellent at vital skills you aren’t so good at.

3. Some people just like to nag. They like to tell people what to do. This doesn’t work in a business partnership or any partnership for that matter. Don’t even think about partnering with someone who is a know it all, or likes to argue, or has a Napolean complex.

4. Different work ethics many entrepreneurs find themselves working with partners who don’t share their enthusiasm or passion for the business. Partners who can’t meet deadlines, follow up with clients, or follow through with their responsibilities can bankrupt a new venture. Unethical partners can also contribute to the downfall of a business. Although you hope to know your partners beforehand, you may not realize their true colors until they have damaged your reputation, stolen money, or disappeared on you when it’s crunch time.

5. Sharing profits entrepreneurs happily share profits with partners when they bring additional value to the company. If your partner does not increase business enough to justify their involvement, however, they shouldn’t receive a share of the profits. If you make the same amount of money with a partner as you do without a partner, you may have selected the wrong person to help you run your business.