Who you partner with matters.
And without question, business partnerships for SME owners have never been more important than they are right now, especially if you want to accelerate growth.
Whether partnerships are supply chain related, investment partners or anything else – for owners looking to exit in the next few years, getting it right is critical.
Alongside the capabilities and opportunities which each side brings to the table, for me, it’s ethics, character and chemistry which matter most when choosing the right partnership. Whenever I see things go wrong, it’s ususally a mismatch of at least one of these.
And making a good decision has far-reaching consequences for all parties…
> REPUTATION. Forging close partnerships where there is an imbalance in ambition, personal integrity, ability to execute or anything else, reflects on the other party, by virtue of association.
> LOST TIME. One of the biggest risks in my opinion. Choosing the wrong partner will cost you time you simply don’t have. Even if the wheels don’t come off, the vehicle might move too slowly – and others will overtake you.
> LONGEVITY. Yes, there are such things as short-term, tactical partnerships. But bad partnerships wont stand the test of time, so be prepared to walk away if you feel ‘the gap’ is too large.
> COMPETITIVE ADVANTAGE. When it comes to buyers and investors, they’re also looking for principled leaders who care about people, communities and positive values. Quality partnerships can increase your competitive advantage.
> EXIT. Your partnerships will be scrutinised during the due diligence process. So at this point, your partnerships now matter a whole lot more than before.
> LEGACY. And remember, once you step away from your business, you want to leave behind a positive legacy.
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