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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. With so many different reasons responsible for that, here are the 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 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.

2. Insufficient support

Friends and families might not really understand certain pressures which are associated with 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 your partner. You’d never want to alarm the shareholder or even scare away the potential investors to cook up a recipe for disaster for your business.

3. Having the 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 businesses. You are advised to partner with people having excellent command of some vital skills that you may not possess. Put your ego aside and head on the route to success.

4. 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 which 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 to share her knowledge with her readers.

Tammy covers and simplifies a range of financial topics, including how start-ups can raise capital and how established businesses can grow successfully. It is clear that she is firmly on the side of Australian small business owners.
Tammy keeps her fingers on the pulse of financial updates. Through her articles, she regularly shares the latest tips and traps around financial products such as business loans and credit cards. She also delivers her information in an easily consumable and interesting way.

Tammy is a keen advocate of promoting financial literacy. She aims to educate small business owners by providing financial insights into common financial problems that businesses face.

“More than anything, I am enthusiastic about using my experience to help Australian small business owners to achieve their financial and business goals,” she says.

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