Launching a business is an exciting and ambitious challenge. Doing it with several requires a little anticipation to settle certain subjects upstream. Indeed, if associating with other entrepreneurs can offer considerable advantages, in particular a complementarity of skills, risk sharing and an increase in resources, a poorly thought or poorly structured association can also generate tensions and conflicts that may harm the sustainability of the business. Before you embark on the adventure with your partners, here are the key points to approach and see to guarantee successful collaboration and avoid potentially expensive traps.
1/ Define everyone’s roles and responsibilities
One of the first aspects to be clarified is the role that each partner will play in the company. It is necessary to discuss everyone’s responsibilities and areas of competence from the start. These roles must be clearly defined so as not to create confusion or overlap of tasks. This will also avoid frustrations if some believe that they carry a disproportionate workload compared to others. Each partner must know what is expected of him, whether it is the management of finance, marketing, human resources, or product development. A clear distribution of tasks is fundamental to guaranteeing fluid organization and effective management.
2/ Establish the contributions of each: financiers, humans, material
When you create a business with several, it is essential to discuss the respective contributions of each partner. This includes not only financial contributions, but also skills, contacts, time or material resources. Each partner must be clear on what he brings and what he expects in return.
Is it a question of fair participation? Or will some partners invest more money, efforts or know-how than others? It is important to formalize these contributions from the start to avoid misunderstandings or tensions in the future. These elements will also influence the distribution of business shares and profits, a fundamental point to discuss.
3/ Determine the distribution of shares and profits
An often sensitive, but essential question concerns the distribution of the shares and the benefits of the company. Who holds what in society? The distribution of actions must be justified by the contributions of each and taken into account within the framework of a Pact of Associates or a joint venture agreement.
This distribution may seem obvious at first, but it can become a source of conflicts if it is not well defined. For example, if a partner considers he contributed more than the others without being reflected in his share, this can lead to tensions. It is therefore important to discuss this point openly and to formalize the agreement with a specific legal document.
4/ set up a management and decision -making agreement
Strategic and operational decisions must be taken collegially in an associative company. However, it is important to define from the start how these decisions will be made. Will it be a democratic management where each partner has an equal voice, or more centralized governance?
It may be useful to define a decision system for situations where the agreement between partners cannot be found. For example, the appointment of a partner as manager or the establishment of an executive committee can facilitate decision -making in the event of disagreement. It is also judicious to predict modalities for current decisions, as well as for strategic decisions that will affect the business in the long term.
5/ Provide an output or repurchase clause of the shares
Although no entrepreneur wishes to consider separation from his partners from the start, it is important to provide a clear framework for such a situation. The reasons for an exit can be diverse: disagreement on the strategy, change of personal priorities, or even financial difficulties.
An output or purchase clause of shares, makes it possible to fix the separation methods in the event of the departure of a partner. This may include mechanisms to assess the value of the company, the procedure for buying the shares and the calendar of this outing. This measure makes it possible to avoid conflicts at a time when the company could be fragile, while protecting the interests of each partner.
6/ Clarify common objectives and long -term vision
For an association to be really fruitful, it is imperative that all partners share the same vision of the company. What are the short, medium and long term goals? What direction do you want to give to the company? Do you want to grow it quickly, or do you opt for a more moderate strategy?
Having a shared vision makes it possible to unify the efforts of the team and to prevent the associates from dispersing in opposite directions. A common objective will strengthen everyone’s commitment and allow them to remain focused on the priorities of the company. It is also a great way to motivate employees and ensure that all partners are on the same wavelength.
7/ set up an open communication structure
Good communication is the key to the success of any association. You must establish from the start of clear rules for communication within the company, ensuring that all parties are informed of important decisions and advances. Regular monitoring of progress, periodic meetings to discuss the developments of the company and potential tension points are essential to maintain a harmonious collaboration. Also make sure that there are channels so that partners can express their concerns or suggestions, without fear of repercussions.
8/ Take into account potential conflicts
Finally, even in an association based on a basis of respect and confidence, conflicts can arise. It is therefore essential to discuss conflict resolution mechanisms from the start. An external mediator, conciliation meetings or formal procedures can be effective solutions to prevent divergences from opinion to harm the business management.
It is also important to agree in advance of how disagreements will be resolved, in particular in the event of conflicting strategic decisions or management difficulties. These resolution mechanisms make it possible to maintain a certain serenity in the company, even in times of tension.