In the past few weeks we have had a number of people contact us who are starting some form of business partnership together. Most of the time their request has been to find out more about their differences. Some of the typical issues they are seeking to understand are:
1. What are our different talents?
2. What should our role in the business be?
3. What areas do we have to watch out for?
4. Do we have shared values and purpose?
5. Who else should we hire?
6. How do we communicate with each other?
7. How do we hold each other accountable?
These are all very important questions and it is important they are always addressed in structuring and managing a partnership.
However, there is another dimension that needs to be understood and is seldom directly addressed. That is the influence of different money personalities.
1. What are the different money personalities of each of the partners?
2. What is each partner’s different relationship to money?
In essence, we need to know their DNA Behavior. How will each partner behave with money based on their financial behavioral style? This is absolutely critical to the success of the partnership. So often partnerships do not work or certainly fail to reach their potential because of the different financial attitudes. The different financial attitudes will have a large bearing on their respective goals, what each wants from the business, how they will handle money in the business, how the business is financed and the business development plans. You will even find the financial attitudes of the spouses will be important as this is another partnership to which each of the business partners is accountable and is strongly influenced by.
If one partner is more dominant, then his or her financial attitude will prevail and have a strong influence on the outcome of the business and the decisions. It is my experience from working with many partnerships, and first hand from being in partnerships, that each partner having a healthy relationship to money will be foundational to success. Just have a look at some partnerships that you know of that have worked and failed. Ask why? Money is nearly always there in a big way. Do not be afraid to find out the answers early as this will save a lot of pain later. This is important as having shared values and knowing your respective talents. If not understood, it will become a major road block.