Yaneek Page | Starting a business partnership in 2021? Read this first

QUESTION: I was asked to resign from my sales job in August because I could not make my sales targets set by my company, even though they didn’t reduce the targets despite the pandemic and how bad things were in the trade. After all the hard work I put in and being disposed of like garbage in this pandemic. I decided that I don’t want to work for anyone else. From now on, I am must work for myself. Now, on a positive note, I’ve decided to start a business with my best friend. We’re launching a construction project management company to take advantage of the new and upcoming developments across Jamaica.

I had not given it much thought before, but many people, especially my aunt and boyfriend, have warned us against going into business together. I trust your experience and wisdom, so level with me. Do you think friendship and business don’t mix? I also really want to know if you would personally go into business with your best friend or if you ever went into business with friends, and what has been the outcome.

– N., Kingston

BUSINESSWISE: This is likely one of the most important questions I’ve gotten for 2020, because this year has taught many of us the value of what’s really important in life, such as good health, supportive family, loyal friendships on which we can depend in good times and bad, and the primacy of our environment.

You have asked some very personal questions, and I’ll answer as best I can, not solely within the confines of my personal experience but also the reality of our world today.

Like friendships, business is multifaceted, fluid and often unique to our individual circumstances and perspectives. Some businesses are stronger than others. Some are harder than others. Some are more physically and psychologically demanding than others. Some have a greater chance of success while others have a higher rate of failure.

Some friendships are sounder than others. Some personalities are better suited for enterprise and partnerships than others. Then there is timing, some economic cycles are better than others to start a business, depending on the type, business and regulatory environment, market resilience, demand and competition.

Our mental health, general wellness and financial standing may also play a role in whether it is a good time to get into business with a particular friend.

The point I’m trying to drive home is that our experiences may vary considerably, depending on the economy, society, type of business, personal values and baggage, the nature of the friendship, and the knowledge, skills and attitudes, or KSAs, of the friends and prospective partners, to name just a few.

I would not go into a start-up business with either of my best friends. At best, I would maybe consider co-ownership in an existing, growth-stage, low-risk business specific to certain industries. Business, especially in Jamaica, can be very challenging, and has been known to bring out the best and worst in entrepreneurs.

The person you show up as in your friendship may be the opposite of who you need to be as a business owner. For example, as a friend, you may be comfortable with lateness or missed appointments, or a lackadaisical approach to some things.

In business, it can be completely different. Sometimes, unfortunately, the person you have to be in order to get things done and avoid being railroaded will be an unrecognisable and maybe even an unlikable version of yourself. It is not uncommon for women in business in particular to have to lead with great strength, extreme confidence and a no-nonsense approach to accountability, business ethics, standards and quality control, contracts, and execution of agreements.

This is something for you to consider seriously as you journey into the construction industry.

My personal experiences with partnerships have been mixed. It can be valuable to have a diversity and depth of expertise, resources, networks, and so on. It can also be advantageous to have shared responsibility and effort, to spread the workload, enhance efficiency and decentralise risk.

However, I have found that managing partnerships adds a layer of complexity to business that requires great skill to navigate. The biggest challenge has been with ethics, accountability and conflicting approaches to leadership and management. Too often, people don’t do what they promise, and resent being held to account. It can literally be a showstopper and deal-breaker.

My advice is to treat partnership like a marriage: determine whether or not you’re compatible, go through counselling with an experienced commercial attorney, accounting specialist, or business adviser, prepare a formal partnership agreement with exit clauses and put in place an experienced board of directors or advisers who can independently support the governance and leadership of the company. I would also encourage both you and your best friend to read my article titled ‘Here’s why Every Business Partnership Needs a Prenup’, published in The Sunday Gleaner dated January 4, 2019. Good luck!

One love!

- Yaneek Page is the programme lead for Market Entry USA, a certified trainer in entrepreneurship, and creator and executive producer of ‘The Innovators’ and ‘Let’s Make Peace’ TV series. yaneek.page@gmail.com