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Why 50% of Partnership Ventures Fail

Many start-ups and partnerships often fail to survive even the initial 2-3 years and they just shut down their operations not knowing the right direction to take their business to. With so many different reasons responsible for that, here are top 4 of them as to why partnership ventures fail in their initial 2-3 years.

  1. Differing views

It’s a fact that opposites attract, but disagreement on the fundamental issues can lead any partnership venture to doom right from the beginning. Even though differing views might help you get inspired and innovate if you can compromise, certain business basics might be divisive. A good example of this is when you need to take funding and the route you should take. Even media partnerships, sales targets and branding decisions can be a source of division between the partners and all these differences may lead to partnership failure.

  1. Insufficient support

Friends and families might not really understand certain pressures which are associated with the business partnerships and you may not also find many therapists who can deal with the business fall-outs. Furthermore, you have to maintain appearances while feuding with the partner. You’d never want to alarm the shareholder or even scare away the potential investors to cook up a recipe of disaster for your business.

  1. Having same skill sets

When the partners possess identical skills, the business is destined to get doomed. You will waste your time and resources and there will be constant conflict. Take restaurants for example. All of them have an executive chef and he’s not the person responsible for creating marketing content, selecting decor and training serving staff. This same concept applies to all the businesses. You are advised to partnership with people having excellent command on some vital skills that you may not possess. Put your ego aside and head on the route of success.

  1. The dictator

There are some people who just love to nag. They love to tell people what they should do. But this habit of theirs doesn’t work in their favour when they are in business partnerships. When looking for business partners, one should avoid people who are “know-it-all” types. Even those who love to argue on every single point are a red flag. Dictators are always involved in nasty disputes in business partnerships and often lead to partnership failures.


Finance Expert, Writer, Entrepreneur

Tammy Richards is a passionate finance expert who is also a writer and business owner. With over 10 years of experience as a finance expert, Tammy wants... read more

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