Dream Team or Nightmare Relationship

The ups and downs of business partnerships
by Nancy Mann Jackson

After entrepreneur Jay Brandrup and his buddy took a two-week post-college road trip out West, their plans to start a business together somehow seemed charmed.

"We talked about our goals, and they all meshed," says Brandrup, owner of Birmingham, Ala.-based Kinetic Communications (http://www.KineticCom.com). "After two weeks in a car, you find out if you can enjoy life with somebody in very close proximity, which is a lot like starting a business together."

The friends launched a successful Web business, and for the first five years Kinetic Communications moved right along. But in 2001, Brandrup's partner abruptly ended what seemed to be the perfect partnership, claiming his goals and interests had changed.

The truth is, according to Brandrup and other experienced business partners, there is no perfect partnership, at least not one that lasts forever. "People change. And you just have to be willing to embrace that change and move on," says Brandrup.

A change in focus is just one reason partnerships crumble, says Brian Miller, co-owner of marketing firm MillerWhite (http://www.MillerWhite.com) in Terre Haute, Ind., and a survivor of several partnerships, both successful and unsuccessful. "Sometimes it's a breach of trust," Miller says. "Or sometimes one partner stops pulling his or her weight and takes advantage of the others. Sometimes partnerships end because one person doesn't want to share leadership anymore. And sometimes, you just choose someone who wasn't a good match."

Like Brandrup and Miller, the business owners on the following pages have learned the truth about partnerships in the manner of genuine entrepreneurs - by jumping in feet first. Any partnership requires preparation, hard work and flexibility. And nobody understands that better than those who have lived through the extraordinary ups and debilitating downs of business partnerships.

Share the Wealth

Though partnerships don't always work out, many small business owners find having a partner is worth the risks.

For Miller, having a business partner meant his company didn't collapse when he couldn't work for seven months while being treated for leukemia. "Having a partner means there's someone to keep the ship sailing when one person has a personal setback," Miller says.

For others, a good partnership means that the whole is greater than the sum of its parts. "It's not one plus one equals two; it's exponentially better," says Timothy Corey of Seattle-based Advanced Approach (http://www.UnleashTheMagic.com), a growth strategy firm, which he co-owns with Michele Corey, his longtime business partner and recently, his wife. "Michele makes me 10 times better than I would be if I ran this business alone."

Having a partner means you can cover more ground in a shorter period of time. "There are two of us working on every issue, twice as much energy and thought given to any situation, and double commitment to success," says Laren Gartner, co-owners of Cheeseburger Restaurants (http://www.CheeseburgerRestaurants.com) in Hawaii and California.

"If we hit a roadblock or an unexpected closed door, Laren is already headed for the next door, and I'm trying the window," says Gartner's partner Edna Bayliff.

Combine a Vision

Potential partners must have a common vision for their business. Although people and their goals can change, it's important to start out with a shared vision.

"Michele and I started working together because we shared a common outlook," says Timothy Corey.

The Coreys adopt the same strategies used with clients to continually refine their own vision for the business ? a process that keeps them focused on a mutual vision rather than veering in their own separate directions.

Structuring time to cultivate and evaluate an evolving mission and vision is a struggle for Susie Kelley and Rebecca Graves, co-owners of Concept Inc., a printing and graphics firm in Pelham, Ala. "It's easy to get wrapped up in everyday tasks and not take time to look at where the business is going," says Kelley. "We try to have weekly face-to-face meetings to discuss where we are."

Because Brandrup and his former partner also evaluated their business and goals frequently, their separation was less painful. "We spent a lot of time and money outlining and evaluating our strategy so that we always knew where we were going," Brandrup says. "Because we had articulated our vision clearly, it made it easy for my partner to see that this wasn't where he wanted to be anymore."

Prepare for the Worst

Business owners rarely have a plan for dissolving their partnership, but experts recommend preparing for it at the outset of a partnership ? just in case.

"Rules for married people getting divorced are pretty well defined in our society, but mechanisms for splitting up businesses are not," says Barry Moltz, a coach and mediator for feuding partners. "There needs to be a mechanism in place if somewhere along the line your interests diverge. Think about if one of you dies, if one of you gets divorced or if one of you becomes disabled."

Because Brandrup and his former partner drew up a shareholders' agreement before starting their business, the steps were already outlined for how they would part ways, so Brandrup was easily able to purchase his partner's interest in the company.

"Having a legal document doesn't always ensure an amiable separation," says Brian Miller of MillerWhite. "But you have to be legally bound to each other. Hire a good attorney in the beginning."

Miller admits that sticking to an agreement is easier said than done. He continues to do business with some former business partners, but doesn't have a relationship with others.

"Sometimes partners take the threat of dissolution personally," he says. "If you have a legal understanding that it's a business relationship based on your mission statement, then it should be clear that when you're not meeting your goals, it's time to separate. When it's done correctly, you can treat the situation with objectivity and your partner with respect."

A legal contract can seem unnecessary in the beginning of a business, but it's worth it in the end. "All this stuff will only matter if the company is worth something someday," Moltz says. "The decisions are a lot easier to make when the company is starting out, rather than when there is a lot on the line."

Test the Waters

Making sure you're teaming with the right person can be one of the most challenging aspects of partnership. Experienced partners seem to agree that it's most important to find someone you trust whose skills complement yours. Shared values regarding finances, success and goals for the company are necessary to make a partnership work.

Although it's not feasible in every case, many successful partners recommend working together before launching a business.

Edna Bayliff worked for Laren Gartner at a former business before they launched their first restaurant. The experience showed them how their skills complemented each other and what their working relationship would be like.

Make It Work

Like any relationship, a business partnership involves challenges. The keys to success are partners who are committed and are able to communicate.

"The main thing that makes our partnership work is that we're open and honest with each other," says Susie Kelley of Concept Inc.

That open communication led to an important division of responsibilities a few years into her partnership with Rebecca Graves. While they had been sharing all responsibilities, Graves realized she was much happier managing financials and technology than making sales calls. On the other hand, Kelley loathed number-crunching and enjoyed networking. Because they were able to talk openly about their interests, Kelley and Graves divided their responsibilities. Each now uses her best skills and relies on her partner for the rest.

Such arrangements of responsibility sharing seem to be hallmarks of successful partnerships. "My role tends to be content, marketing and strategy, while Wendell's role tends to be the engineering architecture," says Daniel Caine, of Split-Up.com Software, a financial software company for divorcing couples.

"Fortunately, Wendell is a brilliant strategist and has picked up a bit of content expertise, and I know a bit about engineering. So we're able to consult with each other on most decisions that are critical to the business."

Obviously, the division of tasks doesn't mean partners don't continually learn from each other. "I tend to work more last minute, where Tim works in a more singular project format," says Michele Corey of Advanced Approach. "He helps ground me, and I help push him."

Maybe it's the process of continually learning and sharing that makes business owners continue to brave the risks of partnership.

"The best part about being in business with a partner is not having someone to lean on in the face of failure, but having someone who has walked that long road beside you and knows how truly sweet success can be," says Bayliff of Cheeseburger Restaurants. "That should not be savored alone."

by Nancy Mann Jackson - MyBusinessMag.com