Nobody sets out on a business venture with the desire to fail. However, it is broadly recognised that all businesses, regardless of their status carry a certain degree of risk and often see failure as a perquisite of success. You could argue that business is about intelligent risk taking.
Some global statistics show that over half of all businesses will fail after five years and, over 70% of business partnerships will ultimately fail. Yet, knowing this, many entrepreneurs neglect to anticipate it, which can result in things turning sour very quickly.
Here we have put together Five tips to help you amicably prevent and deal with partnership failure
Preparation – Put it in the contract!
Every partnership should begin with a contract stating how they will manage disagreements and severance. Referring back to this precursor of agreed processes and pre-nup’s that will prevent potential hefty legal proceedings.
Talk about it – Define individual and mutual desired expectations and needs
Relating back to these expectations and needs at times of negotiation or decision making will ease the resolution process.
Collaboration over personal competition
Transparency and trust lay the foundation for every relationship. It is a lot easier when both mindsets are us vs the problem rather than me vs you. Having a culture of collaboration will always increase intellectual capital.
Third party intervention
At times of an impasse or when tensions run high, third party facilitation can help you move past the deadlock and assist in the resolution of underlining affective and cognitive issues.
Learn from it
Business is a process of making intelligent risks while striving for success and anticipating failure. If you’re going to fail; fail fast, fail forward and learn from it.
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