The Importance of Complementary Skills in Partnerships
Partnering with family or friends for a business may seem like a good idea due to the existing rapport, but if neither complements each other’s skills nor meets expectations, disagreements arise. In extreme cases, this can lead to partner separation.
Among the most common reasons for partner disputes are unclear roles, differing ideals, and unequal contributions to the company.
Javier Zepeda, CEO of BIOS, explains, “You can get along with a friend on a personal level, but professionally, this may not be the case. Therefore, it’s crucial to understand and identify the ideal partner profile.”
When Separation Becomes an Option
If the relationship between partners becomes incompatible and discussions have taken place, separation can serve as a viable alternative, allowing one party to continue operating the business.
However, caution must be exercised during this process, as problems with partners are the second most common cause of business failures, according to the Mexican Entrepreneurship Association (Asem).
Priorities During Partner Separation
There is no set timeframe for partner separation, and it may take years if there’s no documentation or agreement between parties.
To avoid complications, the separation process should be documented. Create partner acts and agreements that describe the reasons for departure, such as voluntary or breach of contract.
Determine the company’s economic value based on financial reports, asset analysis, and individual contributions for equitable distribution.
Experts advise documenting everything, even for small businesses, so all parties can receive their corresponding percentage and sell their shares if a partner decides to disengage.
Does Separation Mean the End of the Relationship?
Collaborating with friends or family sounds promising, filled with shared challenges and reflected in 70% of people willing to start a business with friends, according to a Photoroom survey.
However, when things don’t go as planned, the emotional impact is greater. Without clarity or agreement from one party, maintaining a good relationship in the future becomes difficult.
Ignacio Ortiz, a Pro Evolution Pymes founding partner, advises separating professionally rather than emotionally. “There’s a chance the original relationship may not be affected, but it depends on mutual will.”
Tips for Maintaining a Healthy Partner Relationship
Ending a relationship isn’t easy, even with mutual agreement. Clear communication about the situation within the company is recommended to prevent rumors and employee confusion.
While it’s not necessary to share all details, make it clear that separation will occur and inform the team about the company’s future.
Some prefer a confidential process to prevent partners from damaging each other’s reputations or making unmentioned statements.
To avoid future unfair competition, experts recommend creating non-compete agreements that protect the company and prevent information misuse against partners.
Javier Zepeda emphasizes the importance of selecting an appropriate partner profile before associating with someone else. “Don’t partner without first investigating what you need or how the association will benefit your business.”
Key Questions and Answers
- Q: What should be prioritized during partner separation? A: Documenting the process, determining the company’s economic value, and equitably distributing contributions based on individual input.
- Q: Does partner separation always mean the end of the relationship? A: Separation can be professional rather than emotional, preserving the original relationship if both parties wish.
- Q: How can partners maintain a healthy relationship? A: Clear communication about the separation process, considering a confidential approach if desired, and creating non-compete agreements to avoid future competition.
