In my research about partnerships, I found an article posting on Forbes which stated that a majority of partnerships fail.
That statistic seems high to me. We have talked about planning for partnerships. We have talked about the fact that all partnerships are not successful, and the fact that there are a number of challenges to face to build the correct partnerships. But synergy can be great and great things can happen. The real question is, do 80 % of them fail? I’m not sure where the number was from, but I can say this: There are a lot of successful partnerships now. They are doing great things. They are building things, and they are making money.
Most successful law firms, accounting firms, and professional services firms are partnerships. They create wealth, and they serve clients. There are other less public partnerships that are not celebrated, as well. Well-known companies like Microsoft, Apple, Dell, and others have been partnerships at different points of their journey. Some started as partnerships with a couple of people working together or some brought in investors who are partners.
Is the failure rate correct? I think it really depends on who the partners are and how much planning is done up front. With the correct planning and with the correct steps, you can increase your success rate and not be a statistic.
What do you think about business partnerships? What do you think about the failure rates? Are you worried about this? Leave a note in the comments below.
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This posting is intended to be a tool to familiarize readers with some of the issues discussed herein. This is not meant to be a comprehensive discussion and additional details should be discussed with your attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances. Each case is unique. Past results do not guarantee future outcomes. This article should not be treated as legal advice to any person or entity. Freeimages.com/photographer Mail Sparky.
About the Author
R. Shawn McBride is the Chief Innovation Officer at McBride For Business, LLC. His signature keynote, The 3 Laws of Empowerment, gives audiences an entertaining look at how they can prepare, plan and protect themselves. You can email R. Shawn McBride or (214) 418-0258.