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Successful Partnership
Views£º83483   Time£º2020-7-12

Why Partnership?

The partnership is crucial to the growth of any business venture. Merchants and traders from time immemorial have made use of the principle of a strategic partnership to conduct their businesses; the trend is still very much applicable today. A partnership manifests itself in different forms, ranging from business owners cooperating to invest in a project to share technical knowledge and ideas between firms. Whatever any business does, it is important to look for the right partnership agreement that benefits both parties.

Reasons for Partnership

1. Your partner has strengths that you lack, and vice versa: Batman and Robin, the Fantastic Four, the Avengers¡ªeven superheroes band together to compensate for each other¡¯s weaknesses so that individually they can focus on using their strengths. That¡¯s what great partners do. As collaborators Rodd Wagner and Gale Muller write in Power of 2, ¡°Your strengths are stronger and your weaknesses weaker than you realize. You need help. You are also precisely the help someone else needs.¡±
2. There¡¯s someone else to rely on when it comes to bringing home the bacon: After my partner and I went into business together, we could take on a lot more projects than before. In next to no time, our business exploded. Most partners will tell you that having someone else to help shoulder the workload or just take responsibility for different parts of the business can increase your company¡¯s income potential dramatically.
3. A partner¡¯s perspective can help you break free of your old way of doing things: Brothers Sam, Harry, Albert, and Jack Warner founded the Warner Bros. movie studios in 1918. When Sam Warner proposed the radical idea of synchronizing sound with their movies, brother Harry opposed the idea, saying, ¡°Who the hell wants to hear actors talk?¡± But Sam persevered and in 1927, Warner Bros. made film history with The Jazz Singer, the first ¡°talking picture.¡± Sam¡¯s perspective on the possibilities of sound in film liberated an entire industry from its old ways and put Warner Bros. back in the black and back on the map. Sometimes it takes another person¡¯s perspective to shake a successful business out of complacency and see an old business in a new way.

4. Partners also can serve as a restraint in keeping you from risking too much: One of the reasons Warren Buffett has partnered with Charlie Munger for almost 50 years is the fact that Charlie says no to most investment opportunities that come their way. ¡°When I call Charlie with an idea,¡± says Buffet, ¡°he has three reactions. One is,¡®Warren, that¡¯s a dumb idea.¡¯ Then, we put one hundred percent of our net worth into the idea. If it¡¯s ¡®Warren, that¡¯s one of the dumbest ideas I¡¯ve ever heard,¡¯ we put half of our net worth into the idea. And if it¡¯s ¡®You¡¯ve gone out of your mind, and I¡¯m going to have you committed,¡¯ then we pass.¡± Warren is an incredible enthusiast; Charlie is the bath of cold water that stops Warren from doing something stupid with Berkshire Hathaway¡¯s money. A good partner will tell you when an idea is full of crap and keep you from taking on too much risk.