Some of the greatest business partnerships started when two acquaintances, became friends, and then realized they had a common interest and connection that translated into a profitable business.
Over the years I’ve had five opportunities to enter into business partnerships with other individuals. They all were educational experiences that I wouldn’t change, however, some weren’t as profitable as others.
Trust is so important in a business relationship and is at the top of the list when it comes to deciding if it’s the right fit for you. Let me ask you a question.
Have you ever met someone that you instantly felt like you had a connection? It’s happened to me a few times in my life.
The first time was when I was 15 years old and I met my now husband, Michael.
The next time was when I met my now daughter-in-law, Kari. She was a teller at our bank and every time she helped me I instinctively knew we would know each other better in the future.
Then there was the time that I met my business partner and podcast co-host, Kathleen LeGrys. We met virtually through the magic of the internet and every time she would pop up in my feed she stood out as someone that would have a bigger place in my life someday.
Boy, I could not have ever imagined just how big of a role she would play in my life. LOL!
WHAT IS A BUSINESS PARTNERSHIP?
Business partnerships are joint business ventures between two or more people who share a similar vision and goal for their business. If you’re considering a partnership for your wellness business, here are some factors to consider:
- Is their niche/audience aligned with yours?
- Are your goals and vision within your niche similar? Do they support the vision/mission/goals of the other person in the partnership?
- Which skills does each partner bring to the relationship? These could be knowledge about a particular health topic, specific technology skills, marketing strategies, etc.
- In which ways do you and your partner complement each other?
- Are all partners ready and willing to put in the work (share the workload) of the partnership?
- Which conflicts could arise and cause problems in the partnership?
There are several great benefits of creating a business partnership, including access to additional financial assets, tax benefits, shared expertise and knowledge, as well as sharing the workload, which is especially helpful during launches and for content creation. One of my favorite benefits is having someone to brainstorm with and share ideas.
It’s also important to be aware of some of the drawbacks of entering a business partnership. For example, you need to consider whether an informal arrangement is sufficient or if you need a formal written agreement. You also need to think about partner liability¬ since decisions made by one partner reflects the whole business.
If you’re not quite ready for a business partnership, you might want to start by partnering with business owners in other ways. I love building relationships with referral and affiliate partners (https://www.karenpattock.com/referral-partners-wellness-business/) and it’s a great way to reach more of your ideal clients without going all in on a partnership.
THE IMPORTANCE OF SETTING EXPECTATIONS IN BUSINESS PARTNERSHIPS
Unfortunately, not all business partnerships are successful. There are some things you can do to help make sure you’re set up for success from the start.
One of the most important elements of a successful business partnership is setting expectations. Both you and your partner need to be on the same page in terms of the decisions you’re making for your business. Disagreements are bound to happen, but in the end you and your partner generally need to come to a conclusion that is best for your business partnership.
“A successful small business partnership is akin to a good marriage. Both require not just short-term mutual interest but long-term compatibility. You need compatible values and vision, compatible financial resources and expectations, and compatible goals.” ~Meredith Wood, VP of Fundera
There is definitely a give-and-take type of relationship when it comes to profitable business partnerships. Meredith Wood, VP of Fundera, lists 23 questions that must be considered before entering a business partnership so you can set expectations from the start.
- Why are you considering a small business partnership?
- What will this potential business partner bring to the table that you can’t achieve on your own?
- What is your vision for the business venture?
- Do you and your small business partner share the same personal values?
- What role will you hold in the small business partnership?
- What responsibilities do you expect your partner to fulfill?
- How much time do you plan to commit to building the business?
- What kind of time investment do you expect from your small business partner?
- How will you measure each small business partner’s contributions?
- How will you resolve disagreements?
- How will you settle legal disputes with customers, vendors, and one another?
- How will each partner contribute financially to the business?
- What is your potential small business partner’s tolerance for debt?
- What financial liabilities does each of you currently hold?
- How’s your potential small business partner’s personal credit?
- How will you manage business expenses?
- Will you or your small business partner take a salary from the business before you turn a profit?
- How and when will business profits be distributed?
- What type of partnership structure will you choose?
- What are both of your strengths and weaknesses?
- What is your buy-out plan?
- How would you divide proceeds from a business sale?
- What happens in the event of a partner’s death or disability?
You can read about each of these in more depth here.
MY EXPERIENCE IN A PROFITABLE BUSINESS PARTNERSHIP
Kathleen LeGrys (my business partner) and I get asked questions all of the time about how we met, why we decided to start a podcast together, and the most asked question is, how did we decide to go into business together.
We thought that there would be no better way to celebrate our 200th episode of The Wellness Business Podcast than to share our story with you as a way of showing you what possibilities and opportunities are out there when you open yourself up to new people.
We’re super proud of all this podcast has become and how it has impacted so many people in over 90 countries worldwide. Thank you for your support and for being a loyal listener.
If you’ve ever wondered how we got here, in this episode we’re sharing all the behind-the-scenes details of how our friendship developed into a business partnership, a few never-been-told stories of what we were really thinking along the way, and the things we are most proud of as Team K&K.
In this episode, you’ll discover:
- How we met and our earliest memories of connecting on social media
- The milestones in our relationship that led us to realize that we ‘share the same brain’ as we often say
- The thing we each said YES to that changed the trajectory of both of our businesses
- The thing we are the most proud of as business partners, friends, and soul sisters
We are so excited to share our story with you, but we’d also love to hear how The Wellness Business Podcast has impacted your wellness business!
Help us celebrate our 200th episode of The Wellness Business Podcast and you could WIN A PRIZE!
We’re giving away TEN $20 Amazon gift cards.
Here’s how to get a chance to win:
Step 1. Leave a rating and review in iTunes (from your mobile device)
Step 2. Take a screenshot of your review
Step 3. Post the screenshot of your review to your IG story and tag @kathleenlegrys and @karenpattock
10 people will be chosen at random and tagged on April 30th! You could be one of the lucky winners 🙂
Have you previously left a rating and review? No problem. You can leave a new one or share a screenshot of the one you already left and follow the instructions above for a chance to win.
Not sure how to leave a review in iTunes? Here’s how:
- Select the ‘Podcasts’ app on your mobile device
- Select the “Search” icon on the bottom right corner
- In the search bar, type in “The Wellness Business Podcast” and click to open it
- Scroll down to ‘Ratings and Reviews’ and just under that, you will see ‘Write a Review’ where you can leave your feedback.
We read and appreciate each and every one of them!
Rate, Review, & Subscribe on Apple Podcasts
“I love K&K and The Wellness Business Podcast.” <– If that sounds like you, please consider rating and reviewing my show! This helps us support more people — just like you — move toward creating the wellness business that they desire. Click here, scroll to the bottom, tap to rate with five stars, and select “Write a Review.” Then be sure to let us know what you loved most about the episode!
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