This is part two of Priya’s blog Pharmacy Business Partnerships! Here’s what you need to know…..
If you have not read part one, please read first:
Pharmacy Business Partnerships! Here’s what you to need to know….
So, let’s begin!
I know my partner, where to now?
When forming a business partnership -- just like a marriage -- there are certain key steps to take at the beginning that will help in the transition if your professional relationship should end.
1. Make sure you lawyer up.
If the legal fees in the beginning of a business relationship don’t make you wince, then you’re doing something wrong. When you partner with other people, every aspect of the business relationship should be put down in writing -- including the goals for the company, duties and responsibilities of the partners and an exit strategy.
2. Ensure you have exit strategy.
Ending your business partnership is the last thing you want to think about when you are beginning one. It is similar to thinking about divorce on your wedding day, but you should have a plan. The business exit strategy should include several legal points including the division of the business assets and how the partner's portion of the business will be handled in case of death.
3. Protect yourself.
One of the smartest moves you can make is to protect your personal assets in case of a lawsuit. Please do not hesitate to contact Peak Strategies to discuss protecting your assets BEFORE you enter into any contracts or partnerships.
4. Protect your brand.
Don’t lose sight of who you are. If part of the original business plan is to maintain your brand, make sure it doesn’t suffer while you’re giving all your time and energy to your new endeavour.
When you meet a potential partner, your personalities may click and your goals may be identical but to have a successful relationship, clarity is key. The more precautions you take in the beginning, the happier and more productive you will be later on.
Uh oh, the honeymoon period is coming to an end!
Great businesses are founded on great partnerships. But great businesses can also be destroyed by bad partnerships. The best advice is as soon as you get a sense that your partnership is no longer aligned or is under some pressure, then it is critical to tackle the following head on:
1. Confrontation
Don’t be afraid to be comfortable with calling your partner out on activity or behaviour that is putting your business at risk. Be respectful but say what is on your mind. Why? Because as long as you both want to succeed and do what is best for the business, you have to talk to your partner. If you are too afraid to tell your business partner how you feel, you won’t be able to make your partnership work.
2. Communication
Without communication, nothing is going to get done. Not only should you and your partner communicate on a regular basis, but you should over-communicate. Talk with each other on a regular basis, find problems within the company and try to solve them together; excessive communication also helps keep both of you motivated. You will come up with ideas, get excited about what you are doing and have fun working together.
3. Roles
You and your partner shouldn’t be doing the same thing within the company, especially when you are starting out. You need to focus on solving different problems but make sure you clearly define who is going to work on what so you aren’t stepping on each other’s toes.
4. Time
You can’t expect to create a perfect partnership within a few weeks, months or even a year. It will take you at least a few years to figure out how each of you works and to evolve into your roles. When money is rolling in, things usually aren’t too bad. But when it stops coming in, problems arise. With time, you need to learn how to work things out and create a happy partnership.
5. Execution
Whilst it is important for partners to talk to each other and strategise on a daily basis; it is even more important for the partners to be able to execute on their decisions. If neither of you can execute, longevity in the partnership will wane. Focus your time and energy on getting stuff done because you need to feel like there is a sense of accomplishment.
6. Emotions
Emotions tend to get the best of all of us. When someone calls you out or places blame on you, it is natural for you to argue and fight back. When this happens it is essential you stop and breathe!
You can’t get emotional with your business partner; you need to be logical.
When something is wrong, take a step back and look at it from an outsider’s perspective. Figure out what the logical response would be and take that approach. At the end of the day you both will do what you feel is best for the company, so there is no need to get emotional. Emotions won’t help you accomplish your goals; they will just cloud your judgment.
If you are considering a partnership for the future of your existing business or you are considering a move into pharmacy ownership, your next step should be to seek professional advice.
At Peak Strategies, our team is well equipped to ensure you have the right structures in place and the most effective tax advice to help you grow, manage and protect your wealth.
Written by our Senior Account Executive Priya Narsing
