Tag: Business Partnership

Walking Away From My Co-founder Was the Best Business Decision I’ve Made — Here’s Why | Entrepreneur

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On a recent work trip and unable to sleep, I was flipping through the channels when I stumbled upon Late Night with Seth Meyers, who happened that night to be interviewing the show’s former host, the legendary Conan O’Brien. As a fan of the tall, goofy comedian, I paused my channel surfing just in time to hear him share with Meyers the philosophy that guided him throughout his incredibly long and successful career:

“There’s a giant orchestra, there’s a lot of noise and I’m just banging my triangle. Is anyone even hearing me?” says O’Brien. “And this sounds crazy, it’s like, some Buddhist idea. But if you just stay true to what you believe in, and you keep doing it with purpose, eventually, they’ll only hear the triangle.”

Hearing this, I was immediately cast back to the early days of starting my company, Jotform.

I’m a proud solo founder now, but that wasn’t always the plan. In fact, for years I’d intended to start a business with a close friend. He was 10 years older than me, he was more experienced and we had talked endlessly about launching a company together. We had a verbal agreement: 50/50 partners. No egos — just mutual trust and a shared dream.

But when the time finally came to take the leap, everything changed. He told me that someone had advised him to take 51%. That one person always needed to be “in charge.” It wasn’t a suggestion — it was an ultimatum.

I didn’t even hesitate. I walked away.

It was one of the hardest decisions I’ve made as an entrepreneur. But it was also the best one. Here’s why.

Related: The Professional Breakup — How to Oust a Co-founder Legally and Smoothly

The power of sticking to your principles

Walking away from that partnership was tough — not just as an entrepreneur, but as a person. It wasn’t merely a business split; it was the unraveling of a shared vision, years in the making. I was suddenly on my own, without a partner to lean on and no one to share the weight of what I was about to build.

Conventional wisdom holds that co-founders are necessary for a startup’s survival. Founding a company solo is a “vote of no confidence,” the computer scientist and entrepreneur Paul Graham wrote in 2006. “It probably means the founder couldn’t talk any of his friends into starting the company with him,” he said. “That’s pretty alarming, because his friends are the ones who know him best.”

Yikes. I don’t actually think that advice ever held much water, and with the rise of automation and AI, I firmly believe you need a cofounder less than ever. Still, the fact remains that startups test your resolve in a thousand little ways, and the boundaries you set in those early days become your foundation. If that foundation is cracked, the pressure will only make it worse.

That decision also taught me something essential: Sticking to your principles doesn’t always feel like a win in the moment. In fact, it often feels like a loss of opportunity, momentum and connection. But over time, the cost of compromising what you want is far greater.

Related: The 9 Leadership Principles That Carried Me From the Sidelines to the Suite

Identify your values early

The split in partnership wasn’t the only disagreement my co-founder and I had. We also didn’t see eye to eye on the direction the company would take. In the course of planning our business, it became evident that we had developed different visions — he wanted to consult for other companies; I wanted to build something new. His vision didn’t excite me, and mine didn’t excite him. One of us would ultimately have had to make compromises we didn’t like.

So, as depressed as I was at the dissolution of our plan, I also felt a sense of relief. When you’re starting a company, there are so many forces that threaten to derail your vision. That’s why it’s so helpful to define your values early — the non-negotiables that form the bedrock of your business and your motivation for building it. I like the advice offered by career coach Irina Cozma, who writes in Harvard Business Review that clarifying your values takes both conscious effort and time.

“Depending on your journey, your values might stay constant over time or might change based on new events and information,” wrote Cozma. Check in with yourself each year to ensure that what was once important to you still is. And if it isn’t, don’t be afraid to re-evaluate.

Knowing my values has guided me through some of my most confounding challenges, like how to grow, when to hire and what products to build. They’ve kept me on track and away from the lure of outside investments or opportunities that ultimately wouldn’t serve the company. Splitting with my cofounder gave me a chance to establish what mattered early on, and became the blueprint for how I built the company I have today.

When you know what you stand for, decision-making gets a lot easier. You may still be banging your triangle in a noisy orchestra — but you’re doing it with clarity, purpose and the confidence that eventually, your sound will cut through.

On a recent work trip and unable to sleep, I was flipping through the channels when I stumbled upon Late Night with Seth Meyers, who happened that night to be interviewing the show’s former host, the legendary Conan O’Brien. As a fan of the tall, goofy comedian, I paused my channel surfing just in time to hear him share with Meyers the philosophy that guided him throughout his incredibly long and successful career:

“There’s a giant orchestra, there’s a lot of noise and I’m just banging my triangle. Is anyone even hearing me?” says O’Brien. “And this sounds crazy, it’s like, some Buddhist idea. But if you just stay true to what you believe in, and you keep doing it with purpose, eventually, they’ll only hear the triangle.”

Hearing this, I was immediately cast back to the early days of starting my company, Jotform.

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Aytekin Tank

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September 9, 2025
The Key to Building Effective Corporate-Startup Partnerships | Entrepreneur
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Too many corporate-startup partnerships fall apart despite everyone starting out with good intentions. Big companies say they want to work with startups. Startups jump at the opportunity to scale their ideas. But a year later, both sides often walk away disappointed and empty-handed.

It doesn’t have to be this way. When done right, these partnerships can unlock enormous value that pays off many times over for both sides. But the key word here is partnership. Too often, corporations treat these relationships as transactions, not collaborations. And startups, for their part, don’t always know how to navigate the maze of corporate expectations and politics.

That may help explain why a 2024 survey of over 800 health-tech decision-makers found that just 15% of corporate-startup collaborations succeed — barely up from 13% five years earlier.

Here’s what I’ve learned about making corporate partnerships actually work.

Related: Startups & Corporates: A Symbiotic Relationship

Don’t go silent after the kickoff

One of the biggest mistakes I see corporations make is treating the startup business partnership like a box to check. They kick off the project, then walk away and expect the startup to deliver magic. I can tell you: That almost never works.

Startups thrive on feedback, iteration and course correction. If you leave them alone for months, you risk missing key opportunities to adjust — or worse, ending up with something that doesn’t fit your needs.

As a startup, don’t be shy about pushing for regular check-ins. Insist on ongoing conversations, even if it feels like you’re nagging. I’ve worked with startups that were afraid to “bother” their corporate sponsor, only to find out months later that they’d gone down the wrong path.

If you’re not talking, you’re headed for trouble.

Watch for the “not invented here” syndrome

Here’s a common attitude trap: Big companies love to say they’re open to outside innovation, but when it comes down to it, I’ve seen many struggle to embrace something they didn’t invent themselves.

When corporate teams subconsciously (or even consciously) resist integrating the startup’s work because it feels foreign, or simply because of an ego reflex, the “not invented here” mindset is getting in the way of innovation.

Startups need to pay attention to this dynamic early. Ask yourself: Is your partner genuinely committed to bringing your innovation inside? Do you see them involving their internal teams? Are they championing your work internally?

If not, that’s a red flag. A partnership where the big company never really intended to adopt your solution is just window dressing and will probably end up being a waste of your time.

Related: When It Comes to Corporate Partnerships, Remember These 5 Relationship Tricks

Don’t let your corporation partnership get buried in bureaucracy

Let’s be honest: Corporations can be slow and bureaucratic. Startups … aren’t.

I’ve seen great startups get bogged down in legal reviews, compliance checklists and approval processes, draining resources and killing momentum. If you bring all the corporate bureaucracy to a startup, they will fail. Trying to find that balance is really important.

As a startup, you need to be honest about what your team can handle. If there are just ten of you and the corporate partner is bogging you down in demands like you’re a big vendor with endless resources, speak up. Don’t be afraid to push back and set clear limits. Whether it’s about timelines, resources or anything else, be clear on what you can deliver.

On the corporate side, the best partnerships happen when the company makes an effort to adapt. Simplify processes and give the startup breathing room to operate. Again, startups beware: If you’re not seeing that kind of flexibility, think carefully about how much you’re willing to tolerate.

This is even more important as corporate interest in startups grows. In 2023, corporate-backed deals already accounted for 19% of global venture funding, and the numbers are growing. This shows just how much big companies rely on these partnerships to drive innovation and how much is at stake if they fail.

Redefine what success looks like

One of the most important mindset shifts for both sides is understanding that success isn’t always about launching a blockbuster product right away.

In some of the best startup partnerships I’ve been a part of, the immediate result wasn’t a shiny new thing on the market. What we learned from a project often helped us to solve a problem elsewhere. So — it was successful.

It was learning. It was building capabilities. It was solving problems elsewhere, sometimes in surprising and unforeseen ways, by using what we discovered together.

I like to say: Don’t measure the partnership just by the end product. Measure it by the progress it enables. By the degree of innovation it brings to your company. That is the kind of mindset that keeps both parties motivated.

Creating this win-win relationship is important. You can apply that to intellectual property, licensing and credit, for example. Too many partnerships fail because one side tries to squeeze too much value out of the other. The result is that in the end, nobody wins.

Startups should make sure their corporate partner values the knowledge and connections that come out of the collaboration, beyond the deliverable itself. These expectations need to be managed from the very beginning in open conversations.

Related: Making Startup-Corporate Partnerships Succeed: The How-To

What you should take away

If you’re a startup thinking about partnering with a big company, here’s my best advice:
- Speak up! Insist on regular meetings as part of the process from day one.
- Be honest about your capacity and set realistic expectations.
- Remember: Success is much more than a glossy product launch.
These partnerships can be transformational. They can open doors you’d never reach on your own — but only if you go in with the right mindset and a true partner.

If you treat it like an actual collaboration, not just a deal, you’ll unlock opportunities others might miss.
Too many corporate-startup partnerships fall apart despite everyone starting out with good intentions. Big companies say they want to work with startups. Startups jump at the opportunity to scale their ideas. But a year later, both sides often walk away disappointed and empty-handed.

It doesn’t have to be this way. When done right, these partnerships can unlock enormous value that pays off many times over for both sides. But the key word here is partnership. Too often, corporations treat these relationships as transactions, not collaborations. And startups, for their part, don’t always know how to navigate the maze of corporate expectations and politics.

That may help explain why a 2024 survey of over 800 health-tech decision-makers found that just 15% of corporate-startup collaborations succeed — barely up from 13% five years earlier.

The rest of this article is locked.

Join Entrepreneur+ today for access.

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Anantha Desikan

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August 20, 2025
Every Great Business Partnership Have These 7 Elements in Common | Entrepreneur

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Partnerships in business are a dynamic and powerful way to propel a venture forward. They combine the strengths and resources of individuals to achieve shared goals. However, the success of a partnership hinges on careful planning and establishing a strong foundation.

Drawing from my experiences in both successful and challenging partnerships, I’ve come to appreciate the importance of making informed decisions from the outset to avoid potential pitfalls. In this review, we’ll examine key considerations that can shape a partnership’s trajectory, ensuring its longevity and success.

1. Sign a comprehensive partnership agreement

One cannot overstate the critical importance of a well-crafted partnership agreement. This document serves as the backbone of the partnership, delineating the terms, conditions and expectations that guide the relationship between partners. Prepared by a competent attorney, a solid partnership agreement is not just a formality but a strategic tool to preemptively address potential areas of contention. Without such an agreement, businesses may be entangled in legal disputes when critical decisions, such as selling the business or operational control. The cost of rectifying such issues far exceeds the investment in a robust partnership agreement.

Related: Most Business Partnerships Fail — 5 Hacks to Make Sure Yours Stays Intact

2. Distribute ownership

In the realm of partnerships, the distribution of ownership often dictates decision-making authority. In a 50/50 partnership, achieving equilibrium is crucial, but challenges can arise. It becomes imperative to establish mechanisms for resolving disputes in daily operations. If one partner holds the majority, safeguards must be in place to protect the interests of the minority owner. This protection extends to critical aspects such as owner compensation, business sale decisions, the inclusion of new partners and the exercise of daily operational control.

3. Establish financial contributions and equity distribution

Clarity in financial matters is paramount to a partnership’s success. Outlining how capital is contributed on day one sets the tone for a transparent and fair collaboration. In cases where one partner injects capital, and the other contributes expertise, a clear understanding of each party’s role is necessary. The controversial concept of “sweat equity” is challenged here, suggesting that equity should be commensurate with the financial risks undertaken rather than the sheer effort put into the business. It is crucial to establish not only the initial financial commitment but also a shared responsibility for future financial needs.

4. Delegate control and ensure transparency

The control of finances is often a sensitive matter in partnerships. Deciding who has authority over financial matters and ensuring transparency to all parties involved are critical steps in fostering trust. As the company begins to generate profits, disagreements may arise on the timing and distribution of these earnings. The potential for contention is especially pronounced during tax seasons. To avert such conflicts, partners should agree on the optimal amount of capital the company should retain and establish clear spending limits that require explicit permission.

5. Establish responsibilities and compensation

Defining roles and responsibilities from the outset is essential for harmonious collaboration. Each partner’s duties and the corresponding compensation should be clearly outlined, with a preference for role-based remuneration rather than ownership-based rewards. This approach reinforces the principle that work merits compensation, irrespective of the ownership stake. If the financial health of the company allows, compensating partners based on their roles fosters a sense of fairness and equality.

Related: Want to Grow Your Business? Here’s Why You Need Strategic Partnerships to Succeed.

6. Ensure your visions align

The partners’ vision for the company’s growth trajectory is pivotal. Unanimous agreement on the pace and nature of expansion prevents future conflicts. The strategy for growth, whether rapid expansion with potential financial strains or slow, steady growth with sustained profitability, requires alignment. In cases where expansion involves acquisitions, discussions on bringing in additional partners or securing external funding become paramount.

7. Planning for inevitability

While partnerships are born with optimism and shared aspirations, it is crucial to acknowledge that they will eventually end. Planning for the exit is as crucial as planning for the partnership’s inception. Agreements on a potential sale or partial sale should require unanimous consent from all partners to avoid impeding the process. In instances of unforeseen events, such as a partner’s death or disability, a well-defined buyout mechanism should be in place. This mechanism should safeguard the company’s financial stability, ensuring a smooth transition and a fair valuation process.

In conclusion, partnerships in business offer a potent means of scaling operations, sharing responsibilities and mitigating risks. However, the success of such collaborations hinges on meticulous planning and establishing clear agreements. A robust partnership agreement, addressing critical considerations ranging from financial contributions to responsibilities and exit strategies, lays the groundwork for a resilient and prosperous partnership. By prioritizing transparency, effective communication and fairness, partners can navigate challenges with confidence, transforming their collaborative efforts into a mutually beneficial opportunity that stands the test of time.

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Andrew Cagnetta

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July 5, 2024
What to Know Before Partnering With a Software Solutions Provider | Entrepreneur
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A timeless quote from a well-known literary work captures the essence of how businesses strive to navigate through uncertain times. It says:

“… we must run as fast as we can, just to stay in place. And if you wish to go anywhere, you must run twice as fast as that.”

While companies reduce IT departments and seek ways to improve budget allocation, the work scope is decreasing along with the need for expertise in software engineering. This has made partnerships with external software development companies so popular these days as it helps to fill in such gaps. These numbers speak for themselves:

In this article, I’m sharing three of the most effective approaches to partnering with software solutions providers and explaining the cases where each of them works the best for ROI optimization.

Related: 5 Things to Consider When You’re Hiring A Software Outsourcing Partner

Dedicated development team

A dedicated development team works on a long-term basis intending to include all client’s requirements in software solutions and align them with the company’s strategic objectives. It consists of experts needed to create a project from scratch. In this case, the client transfers responsibility for administrative, HR, tax and social benefits matters to its tech partner.

Let’s imagine you plan to upgrade IT infrastructure in the company. Your goal is to make it smooth and minimize any problems or disruptions that might occur. It’ll take time to find a talented IT Infrastructure architect, and there is no guarantee that the person found is right for the project. On the other hand, partnering with a dedicated development team with such expertise will ensure faster change implementation.

To develop the Experimentation Platform and help drivers make wise parking and traffic-related decisions, Ford involved experts from IBM. Leveraging IBM Analytics delivered through the IBM Cloud, this partnership facilitated the continuous flow of data. As a result, Ford introduced a groundbreaking tech solution that also finds application in other companies’ projects.

The areas in which partnering with a dedicated development team brings the most business outcomes are:

Team augmentation

When a business chooses to collaborate with a software development company on the team augmentation model, this means enhancing the existing group of engineers with new professionals. The terms of this cooperative agreement specify that the involved professionals are required to allocate their efforts to specific tasks, and compensation is based on the number of hours worked.

Here’s how team augmentation works within the company: Suppose a growing ecommerce business wants to develop a mobile application with a specific 3D functionality. The in-house team is already working on this project, but they lack experience in creating some 3D features. Rather than waiting for the team to acquire these skills, the company finds a software engineer from a third-party vendor.

Cases when the tech team augmentation for businesses works the best:

Related: 4 Mistakes Not to Make When Choosing A Software Development Company

Managed services

Managed services is the practice of transferring responsibility for specific functions within the software development department to third-party service providers. Namely, they monitor, maintain and optimize the systems, acting as a trusted advisor.

Imagine you plan to create or restore data backup. This requires a group of cybersecurity specialists and back-end engineers who will regularly maintain the company’s digital file storage and look for solutions to facilitate search and collaboration. By partnering with a managed services provider and getting access to experts, businesses minimize the risks of file damage, loss or unauthorized access.

Managed services is a great option when a business needs services like:
- Hosting/cloud operations
- Infrastructure support
- Cybersecurity services
In the face of skill shortages and budget constraints, partnering with external software solution providers is a workable way for businesses. Although dedicated development team, team augmentation and managed services offer companies exclusive expertise and economically justified conditions of cooperation, they fit different business goals.

The outlined specifics and differences between these partnership models will help you to choose the right approach to address skills gaps and optimize the whole operations’ efficiency.

Related: Why Outsourcing Software Development Services Is Gaining Traction With Non-Technical Leaders
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Slava Podmurnyi

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July 7, 2023
How Partnerships Can Grow Your Business in Challenging Times | Entrepreneur

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In times of economic uncertainty and market challenges, businesses face tough decisions to ensure their survival and growth. While raising capital and adopting a “cockroach” approach may be viable strategies, another path to success lies in forging strategic partnerships.

These alliances, when well-aligned and executed, have the potential to accelerate business growth and create a competitive advantage. In this article, I’ll explain how strategic, synergistic partnerships can unlock growth for your business and provide a few examples of brands that have seen great success from their own partnerships.

Related: How Investing in Strategic Partnerships Can Help Grow Your Business

The Apple-Nike success story

Strategic partnerships offer a unique opportunity for businesses to leverage complementary strengths and resources, enabling them to achieve growth and overcome market obstacles. In bear markets, where funding may be scarce or uncertain, partnerships can provide a valuable alternative to traditional financing. By pooling together expertise, technologies or customer bases, companies can tap into new markets, access additional resources and drive innovation.

One notable example of successful strategic partnerships is the collaboration between Apple and Nike. By combining Apple’s expertise in technology and design with Nike’s domain knowledge in sports and apparel, they created the Nike+iPod ecosystem. This partnership allowed Nike to integrate Apple’s technology into their footwear, enabling runners to track their workouts using iPods and Nike+ running shoes.

The partnership propelled Nike’s brand recognition and sales, while Apple expanded its reach into the fitness market. This mutually beneficial alliance demonstrated how strategic partnerships can enhance product offerings, attract new customers and drive revenue growth.

Identifying the right strategic partners is a crucial step in building successful alliances. Businesses should look for partners that share similar values, goals and target markets. The alignment of visions and values lays the foundation for a strong partnership and ensures a harmonious working relationship.

Additionally, partners should bring complementary strengths and capabilities to the table, filling gaps and enhancing each other’s offerings. This synergy allows businesses to expand their reach and deliver more value to customers.

Related: Don’t Go It Alone: How to Use Partnerships as a Growth Strategy

The Spotify-Uber connection

When implementing strategic partnerships, it is essential to establish clear goals, roles and expectations from the outset. By defining these parameters, companies can ensure alignment and avoid potential conflicts down the line.

Moreover, effective communication and transparency are vital for maintaining a healthy partnership. Regular updates, progress reviews and open dialogue foster trust and enable partners to address challenges and seize opportunities together.

Another successful example of a strategic partnership is the collaboration between Spotify and Uber. By integrating their platforms, Spotify and Uber provided an enhanced experience for users. Uber passengers gained control over the music played during their rides, while Spotify gained access to millions of potential new users.

This partnership not only increased user engagement but also allowed both companies to tap into each other’s loyal customer bases. It highlights the power of partnerships in expanding market reach and enhancing the value proposition for customers.

Related: 10 High-Profile Brand Partnerships That Struck Gold

The Coca-Cola-McDonald’s connection

One of the most iconic and successful strategic partnerships in the food and beverage industry is the collaboration between Coca-Cola and McDonald’s. This partnership showcases the power of collaboration and the impact it can have on both companies’ growth and success.

Coca-Cola, a global leader in the beverage industry, recognized the opportunity to leverage McDonald’s extensive global footprint and strong brand presence. By partnering with McDonald’s, Coca-Cola secured a prominent place on the menu of one of the world’s largest fast-food chains, gaining access to millions of customers on a daily basis. This partnership not only increased Coca-Cola’s market reach but also provided McDonald’s with a trusted and beloved brand to enhance their beverage offerings and satisfy their diverse customer base. Together, they created a synergistic combination that elevated the dining experience for customers.

Beyond the product aspect, this partnership involved joint marketing initiatives, co-branded promotions and shared resources. The synergy between Coca-Cola’s marketing expertise and McDonald’s extensive reach allowed both companies to amplify their messages and strengthen their brand presence in the market. By collaborating closely, Coca-Cola and McDonald’s aligned their goals, ensuring a seamless integration of their products and marketing strategies. The partnership brought mutual benefits in terms of increased sales, brand visibility and customer satisfaction.

The Coca-Cola-McDonald’s partnership serves as a testament to the importance of partnerships in driving growth and delivering value to customers. It highlights the significance of leveraging complementary strengths and resources to create a win-win situation for all parties involved.

In today’s competitive business landscape, strategic partnerships have become increasingly crucial for companies seeking to expand their market presence and drive innovation. By embracing collaboration, businesses can tap into new customer segments, access additional resources and create mutually beneficial opportunities for growth.

Looking forward

Growing through strategic partnerships can be a viable and impactful strategy in tough times. By forging alliances with like-minded and complementary partners, businesses can leverage shared resources, accelerate growth and navigate challenging market conditions. Successful partnerships require careful evaluation, alignment of goals and effective communication. Identifying partners who align with your vision, bring complementary strengths and share similar values is key to unlocking the full potential of a strategic partnership.

By embracing the power of partnerships, businesses can overcome obstacles, create new opportunities and thrive in the face of adversity.

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Will Fan

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June 26, 2023
6 Ways to Improve Your Relationships Through Smart Tactics | Entrepreneur

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One of the biggest determining factors of happiness is the quality of the relationships of those closest to you.

Similar to all great things, it does take time and energy to cultivate good, strong relationships. In business, strong interpersonal skills will result in networking opportunities, customer satisfaction, successful negotiation and unmatched leadership.

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Baptiste Monnet

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May 29, 2023
How to Find the Right Balance in Business Partnerships | Entrepreneur

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Business partnerships can be a key driver of success, but navigating the delicate balance between compromising and standing your ground can be challenging.

In today’s competitive business landscape, finding the right equilibrium is crucial for sustainable and profitable partnerships.

Here are some insights on how to strike the right balance between compromising and standing your ground in business partnerships.

The value of compromising in collaboration

Compromise is an essential element of successful partnerships. It fosters collaboration and teamwork, allowing partners to work together towards a common goal.

When partners are willing to compromise, they can find creative solutions to challenges and make decisions that benefit the partnership as a whole. However, compromise does not mean sacrificing your core values or principles.

It’s important to establish clear boundaries and understand what you are willing to compromise on without compromising your integrity or the long-term success of the partnership. Here’s how:

Related: 7 Steps to Compromising Effectively as a Business Leader

Effective communication: Effective compromising

Clear and open communication is vital in business partnerships. It enables partners to express their concerns, ideas and perspectives openly and honestly. Effective communication helps partners understand each other’s viewpoints and find common ground for compromise.

It’s important to establish regular channels of communication, set expectations and create a safe space for open and honest discussions. Active listening and empathy are also crucial skills for effective communication, as they build trust and mutual understanding.

Embrace flexibility and adaptability

Flexibility and adaptability are essential traits for successful business partnerships. Markets and industries evolve rapidly, and partners need to be open to change and willing to adapt their strategies and plans accordingly.

Being flexible and adaptable allows partners to respond to new opportunities and challenges proactively. It’s important to be open to feedback, learn from mistakes and be willing to adjust plans and strategies as needed.

Flexibility and adaptability foster a collaborative environment where partners can work together to navigate changing business landscapes.

Standing your ground and upholding convictions for the long-term

While compromise is essential in partnerships, it’s also important to know when to stand your ground.

Upholding your convictions and staying true to your core values are crucial for the long-term success of the partnership. It’s important to have a clear understanding of your non-negotiables and communicate them to your partners. Be firm and assertive in defending your convictions, but also be open to constructive feedback and differing perspectives.

Finding a balance between standing your ground and compromising requires discernment and strategic thinking.

Related: Attention Entrepreneurs: Compromise, But Never Compromise Your Standards

Establish boundaries and know your non-negotiables

Setting clear boundaries is critical in business partnerships. Identify your non-negotiables, which are the principles or values that you are unwilling to compromise on.

It could be ethical standards, financial goals or long-term vision for the partnership. Clearly communicate these boundaries to your partners, and ensure they are respected.

Boundaries help partners understand each other’s limits and foster mutual respect, which is essential for a healthy and sustainable partnership.

Make strategic decisions by balancing conviction and flexibility

Strategic decision-making is a delicate balance between conviction and flexibility. It’s important to stay true to your convictions while being open to feedback and new ideas.

Avoid making impulsive decisions based solely on emotions or personal biases. Instead, base your decisions on data, market trends and strategic planning.

Be willing to reconsider your stance if new information emerges, but also hold firm to your convictions when they align with the long-term success of the partnership.

Related: 8 Powerful Ways Leaders With Conviction Motivate Us

In conclusion, finding the right balance between compromising and standing your ground is crucial in business partnerships. Compromise is essential for collaboration and teamwork, while standing your ground upholds your convictions and values for long-term success.

Effective communication, flexibility, adaptability and establishing clear boundaries are key to finding the right equilibrium. Strategic decision-making based on data and market trends helps strike the balance between conviction and flexibility.

Remember, successful partnerships require constant effort, open communication and mutual respect. Finding the right balance between compromising and standing your ground can lead to a harmonious and successful business partnership that thrives in today’s dynamic business landscape.

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Roy Dekel

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April 26, 2023
How to Coexist With a Business Partner to Build an Empire

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Thinking about the business partnership phenomenon, I remembered the movie The Mighty.

The story centers on two teenagers: Max, a silent and clumsy giant, and Kevin, nicknamed “Freak,” a small, clever boy who moved on crutches due to an illness. They were constantly mocked and bullied at school. After another incident, the boys decided to fight back against their classmates by uniting into a giant knight. Climbing onto Max’s shoulders, Kevin became the mastermind behind which the stocky giant smashed the attackers.

Moving from the literal to the metaphorical, The Mighty remains one of my most essential collaboration films. It reveals the most crucial part of the partnership, which I call the multiplication of talents. Let’s break this down and a few more essentials of effectively managing a business partnership.

Related: Everything You Need to Know About Business Partnerships

1. Distribute responsibilities

If two people manage the company, and both have the same vision of plans for development or getting out of this or that situation, it makes no sense. Each of you shouldn’t have to do everything — you should concentrate on your primary skills.

Another managing partner of our holding and I have different competencies. For example, I am an economist by profession. I look for investors and bring companies to new markets. I mostly lead our projects in Europe and Asia because I have worked in these markets for more than 10 years.

On the other hand, my business partner deals with strategic planning. He lives in the U.S. and mostly manages our projects there. He is a computer systems engineer by profession, which is one reason his favorite projects are technology-based.

What do we get from such a division of responsibilities? First, we are building a diversified holding of multi-vector assets, thanks to which the business is becoming more and more sustainable. Second, this is a more convenient way to manage a team: Employees at all levels understand who to go to with which question. And third, this is how we maintain the proper distance and do not micromanage or excessively control each other. Development requires space, so we give it to each other.

Our cooperation is built on the “do what works best” principle. And it does work: The holding grows from year to year.

Related: 8 Critical Considerations for Choosing the Right Business Partner

2. Don’t “hog the blanket”

A business partnership somewhat resembles a marital relationship. It is important for partners to understand each other’s strengths and weaknesses and how they will deal with them.

If both partners are unable to let go of control or admit their weaknesses, they will almost 100% “hog the blanket” from each other — that is, they compete to take over most of the powers without taking into account the interests of the partner. But in competition, partners weaken each other and the joint project.

The signals partners give to employees, especially the CEO, are very important. C-level managers perceive the struggle between founders as a standard of relations in the company and a model of managing subordinates. If you see that your employees lack independence in decision-making, it is often due to the example they follow.

The ideal version of a business relationship is that your partner is equal in strength and scale of personality and differs in habits and ideas. Based on our partnership experience, I know that sometimes the air between you can get electrified, but the best solutions are born in such friction.

Related: 3 Steps to Creating Powerful Business Partnerships

3. Give your partner the right to make a mistake

“Victory has a thousand fathers, but defeat is an orphan,” said John F. Kennedy. In a business relationship, partners must be responsible for each other’s decisions. If they blame each other for bad decisions, they will not last long together. Failures should be a reason to jointly review the strategy and work on mistakes.

Punctures and unsuccessful investments are constant companions of entrepreneurs. About two dozen startups that my partner and I invested in burned down. If we quarreled after every failure, we would not have built a large international business.

It takes time to develop the right attitude toward failure. We used to fight for every startup, but we have become more pragmatic with time. If quarterly reports do not match, market indicators have fallen, and there are no conscious growth forecasts — we decide to shut down such a business.

Related: The 4 Key Tenets of Every Successful Partnership

4. Enjoy your collaboration

Partners can be an effective team and make good money together. But it is equally important how they feel in the process and this relationship.

The satisfaction of working together is the glue of partnerships. Admiration for a partner’s talents and the pleasure of cooperation can save a business even in hard times. The ability to enjoy signals security and therefore the ability to trust. Trust is built through mutual support in upheavals, sincerity, and attentiveness to the person you are doing business with.

You should be able to have fun together. I have been very lucky with my partner because it is interesting to discuss new books and research with him and debate the vector of development of our projects. And since we argue quite often, it is crucial that the shared emotional ground is solid.

All the nuances of partner interaction are directly reflected in the business. There is a lot of personal stuff in a productive business partnership, and emotional comfort weighs no less than the number of deals or the value of common assets. At the same time, mature partnerships are not a gift from heaven but daily joint work. I hope the principles I have shared will help you make this work easier and more fun.

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Oleg Krot

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February 8, 2023
Sammy Hagar and Guy Fieri Reveal The Two Key Ingredients of Entrepreneurial Success

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Opinions expressed by Entrepreneur contributors are their own.

There was John and Paul and then John and Oko. Chris Tucker and Jackie Chan. Will Smith and Tommy Lee Jones. Sure, we’ve had great pairings on the screen, in the recording studio, and on stage, but mixing sectors is taking on a whole new life and energy.

Rocker Sammy Hagar never plays second-fiddle to anyone unless you’re a bleach-blonde, larger-than-life flavor junkie who hunts down good times like it’s a profession. We’re, of course, talking about Guy Fieri.

Hagar and Fieri, both from small towns in California, share a love of entertainment and experience and are continuing to bring that to consumers with more offerings from the company Santo Spirits.

Entrepreneur spent time with the duo to dig deeper into the roots of their partnership and, more importantly, friendship.

Known affectionately as the “Godfather of Tequila,” Hagar has been on the spirits scene long before Ryan Reynolds, George Clooney, Conor McGregor, Bryan Cranston, or Charles Barkley cashed in on the distillery run that has made billions worldwide.

Hagar attributes much of his success in the spirit industry to the gritty and comforting roots of his rearing in the lettuce fields of Salinas, California. “We grew up poor, but we always had a garden. My grandma and my mom canned everything. We ate good tomatoes all year round,” he says. Hagar remembers the smell wafting yards away from his artisanal chef and grandfather’s trailer-turned Italian-bistro. “He made his own cheese, pasta and olive oil. He even made his own wine! I would walk towards his trailer, and it was like a deli — it smelled so damn good!”

Related: ‘No One Believed’ This Black Founder Was the Owner of a Liquor Brand in 2012. He Launched to Great Acclaim — Then Lost It All. Here’s How He Made a Multi-Million-Dollar Comeback.

The romanticism of his relationship with food and family emanates in his description and experience of flavors today. He didn’t plan on a spirits biz, but good taste pulled him in like many things in his life. Hagar leans into the quality of the food and spirit industry, maybe because he only first experienced a restaurant at the ripe age of 24.

Wine was Hagar’s first love, and through a few unexpected and global turns, he found himself in Jalisco, Mexico sipping tequila. What started with Cabo Wabo eventually expanded into new ventures. “Good tequila tastes like the earth with salt and citrus. Overtones, fruity, herbaceous, time and limit are all involved. Santo Tequila Blanco, you can drink it by itself. There are so many notes in it.”

“Fieri grows peaches all around the distillery, and you can taste and smell the peaches in there. It’s such a wonderful agave spirit. Out of a Blanco tequila, I can name 15 different things that I smell in ours because there’s nothing else in it. Others might smell like sugar or honey because they try to bring it up with agave syrups. A lot of tequila is not as pure as it should be anymore.”

Before tequila, Fieri was drinking the Kool-Aid

Years before Fieri was smashing flavor profiles on our screens, he was selling Kool-Aid in his neighborhood. Known for rolling his sleeves up, Fieri literally dipped his youthful arm into pitchers of the iconic 80’s beverage until his father noticed. “My dad kicked me out of the Kool-Aid business after he caught me with a purple arm. I’d lost my stirring stick, my dog took it, and my dad busted me. He said, ‘That’s it, you’re out.’”

The budding beverage king learned a valuable lesson as an up-and-coming entrepreneur. “I always had a couple of businesses going as a kid. I was a budding entrepreneur growing up in the angelic town of Ferndale, California. I always had businesses, and tourists were always coming through. I’d buy penny candy from the candy store and sell it for a nickel across the street with my own little booth made out of cardboard. People couldn’t believe this little kid was making money.” While his entrepreneurial Kool-Aid days are behind him, it wasn’t the only time Fieri would go on to make a profit selling beverages (albeit of the alcoholic variety).

Enter the dream team

When Hagar sold Cabo Wabo, Fieri was crushed — his restaurant self-reported selling more Cabo Wabo than any restaurant in the country.

They talked. Hagar was ready to chill and enjoy the well-earned sips that had solidified his place as an entrepreneur. Fieri wanted to partner up to build a spirits company with Hagar, who was reticent. Call me in a decade, and maybe I’ll be ready, Hagar replied.

Fieri was ready even if the decade bloated a couple of years before circling back with Hagar. This time it was Hagar doing the calling, and Santo Spirits was born.

Bandmates

For decades Hagar has approached life and business, aiming to be the best. “Quite honestly, when I joined Van Halen, I thought if I couldn’t sing better than the previous guy [David Lee Roth], I wouldn’t have joined the band.” By all accounts, Hagar has found a bandmate in Fieri that embodies a key element of success for entrepreneurs — complementary skills and a matched passion for winning.

Fieri provides advice for entrepreneurs in something he adlibs the 25/8 rule. “If you don’t have spark, you don’t have sh-t. But it takes hard work. It’s one of the things this country was founded on and the sacrifices our veterans made. Get the 40-hour workweek out of your mind. You’ve got to work 24/7, and in my book, it’s more like 25/8. But it’s important to remember that you also live 25/8. Don’t make work and life separate, make it the same thing, and put it all together.”

Hagar realized corporate success through gates of established fame and beliefs that allowed him to bring passion over profits to his pursuits outside of music. “I came through music and had more success, fame, and fortune than anyone could ever want in their lives. When I started doing business deals, it was strictly out of passion and creativity, with a strong connection to music.” It’s become personal for Hagar, who finds peace and reward in his Hagar Family Foundation, providing services for kids and families in need. Hagar remembers being poor and sees his job as assisting communities and giving back.

Hagar’s mother, if not for an unexpected supporter, was given typing classes that resulted in an office job and away from day-labor work in the fields. Hagar repeatedly shares, “What if? What if she wasn’t so lucky?”

Don’t make the mistake of thinking a little tequila can knock these two back. Hagar and Fieri have discovered the entrepreneurial recipe that celebrates friendship, revenue and a splash of legacy to personalize the business of experience.

Most entrepreneur “how to” books scoff at friends going into business together. I guess spirits and rock-n-roll are just a tad bit more exciting than widgets. Hagar and Fieri will be rocking the sipping industry while most of us are rocking our email and spreadsheets. Salud!

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Dr. Rod Berger

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December 8, 2022
3 Mental Blindspots That Could Explain Why Adidas Waited To Drop Ye

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Opinions expressed by Entrepreneur contributors are their own.

“Adidas does not tolerate antisemitism and any other sort of hate speech… the company has taken the decision to terminate the partnership with Ye immediately,” according to its October 25 news release. That statement conveys a principled and admirable stance against the antisemitism shown by the rapper formerly known as Kanye West after his antisemitic tweet on October 10 that he would go “death con 3 on JEWISH PEOPLE.”

Yet Adidas waited much, much longer than other companies that cut ties with Ye. Even Ye’s own talent agency dropped him before Adidas. In fact, Adidas delayed so long that Ye taunted them on his October 16 appearance on the Drink Champs podcast, saying “I can say antisemitic things, and Adidas can’t drop me. Now what? Now what?”

Related: ‘Unacceptable, Hateful and Dangerous’: Adidas, Gap Among Companies, Athletes Dropping Ye-Related Brands as the Rapper Loses Billionaire Status

Adidas faced particular pressure to drop Ye due to its dark past. A German company founded by a former member of the Nazi party, Adidas had an especially strong reason to drop Ye earlier than other companies. Adidas faced mounting pressure from the Anti-Defamation League and other organizations to drop Ye given its Nazi past. A Change.org petition set up by the Campaign Against Antisemitism urging Adidas to sever ties with Ye had gathered 169,100 signatures by October 25.

Yet Adidas refused to drop Ye until all the other companies dropped him. Instead of getting ahead of the problem and dropping Ye immediately after his October 10 anti-semitic tweet, or even his October 16 taunting of Adidas, the company had to be shamed and pressured into cutting its ties with Ye. As a result, Adidas seriously damaged its brand, harming its reputation among anyone opposed to antisemitism.

What explains the poor decision-making by the Adidas leadership? It’s a classic case of the ostrich effect: A dangerous judgment error where our minds refuse to acknowledge negative information about reality. It’s named after the mythical notion that ostriches bury their heads in the sand at a sign of danger. The ostrich effect is a type of cognitive bias, one of many mental blindspots that impact decision-making in all life areas, ranging from the future of work to mental fitness.

The Adidas leadership buried its head in the sand. It refused to acknowledge the growing damage to its brand from Ye’s antisemitism, as well as his prior bad behavior, such as having models wear “White Lives Matter” T-shirts in early October.

Such denialism in professional settings happens more often than you might think. A four-year study of 286 organizations that had forced out their CEOs found that 23% were fired for denying reality, meaning refusing to recognize negative facts about their organization. Other research shows that professionals at all levels suffer from the tendency to deny uncomfortable facts.

Adidas’ denialism likely stems from the cognitive bias known as the sunk costs fallacy. According to Adidas’ statement, the termination of the contract is expected to “have a short-term negative impact of up to €250 million on the company’s net income in 2022 given the high seasonality of the fourth quarter.” Presumably, the impact will be much higher in 2023, over half a billion at least.

Related: Facebook to Ban Holocaust Denial, Citing Rise in Anti-Semitism

The partnership with Ye had a long history since 2013 when the company signed his brand away from rival Nike. In 2016, Adidas further expanded its relationship with the rapper, calling it “the most significant partnership ever created between a non-athlete and an athletic brand.”

In other words, Adidas invested a great deal of money and reputation into its relationship with Ye. That kind of investment causes our minds to feel strongly attached to whatever we put those resources into, and throw good money after bad.

You’ll see this happen often in major projects that are working out poorly, such as Meta’s Metaverse project. Several high-profile industry figures recently criticized Mark Zuckerberg’s efforts. That includes Palmer Luckey, the founder of VR headset startup Oculus, which Meta acquired in 2014 for $2 billion. Luckey said “I don’t think it’s a good product” about Horizon Worlds, Meta’s core metaverse product. He called it a “project car,” a fancy automobile that the owner spends a lot of money on as a hobby. So far, Facebook’s shift to building the metaverse has been costly, with the company last year losing $10 billion on it, and Wall Street analysts expect it to lose more than $10 billion again this year.

Similarly, you’ll see sunken costs in major relationships. That can range from marriages that lasted much longer than they should have to brand partnerships like the one between Adidas and Ye.

The final cognitive bias relevant here is called hyperbolic discounting. This term describes our brain’s focus on short-term, highly visible outcomes over much more important and less visible long-term ones. Adidas didn’t want to take the short-term financial hit to its bottom line by cutting ties with Ye. However, Adidas failed to give sufficient weight to the long-term damage to its brand from failing to do so.

Short-term financial damage is highly visible and painful, while long-term brand damage is much less visible and less painful. Yet realistically, such brand damage is much more important to the long-term success of Adidas.

In my consulting, I’ve seen many executives struggling with the same three mental blindspots when they face top performers engaging in bad behaviors, ranging from incivility to sexual harassment and discrimination. Leaders deny it happened because they have so much invested in the top performer, whether a star salesperson or top data scientist and they don’t consider the long-term consequences to the organization’s culture and employee morale.

In fact, it’s easy for anyone to fall for these three cognitive biases when someone whom you value behaves badly. Fortunately, forewarned is forearmed: Knowing about these three mental blindspots means you can watch out for these problems in your own professional and personal life.

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Gleb Tsipursky

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October 27, 2022
4 Lessons That Can Help You Shift From Order Taker to Strategic Partner

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Opinions expressed by Entrepreneur contributors are their own.

There are partners who do the work and partners who create the strategies behind the work. As entrepreneurs, we tend to do it all because we’re establishing our business and building our revenue pipeline. But there are inherent problems with this approach.

Case in point: In my first full year working for myself, I landed a huge client. I had the experience, the knowledge and the skills for the assignment, but I was just starting out on my own and didn’t have a budget to hire help. Wanting to prove that I could handle the project, I did it all myself, serving as a marketer, copywriter and account manager.

What I didn’t leave time for was strategy. My desire to please the client took over, and I ended up throwing myself into the tactical work at the expense of my strategic expertise. As a partner, I was doing myself a disservice. When the client didn’t see my vision, they mentally put me in the “doer” category.

There are two inherent problems with being an order taker: Firstly, the work you’re ordered to do may not align with your vision and likely won’t earn the results they’re looking to achieve. Secondly, sooner or later, they’ll move the tasks in-house.

Related: If You Want Your Clients to Truly Value You, You Need to Be Their Trusted Advisor. Here’s How.

Apparently, I’m not the only one who has fallen into the people-pleaser trap. Women are apparently at greater risk of manifesting this self-sabotaging trait. According to a recent study, 56% of women are more likely than men to describe themselves as people pleasers.

The results of another study concur — 54% of female participants exhibited people-pleasing behavior, while the minority of men at 40% showed similar tendencies.

The pressure that women feel to please others is real. It’s a “gender norm” historically reinforced by society, making us more susceptible to related behaviors, such as difficulty saying no or arguing our case. As Caitlyn Collins, a professor of sociology at Washington University so aptly put it, “Women have been socialized into understanding that what is most important is that they be perceived as likable and agreeable.”

We’re more likely to nod in agreement and dive into the work than we are to disagree or say we know better. And by and large, we’re invaluable as workers because we want to please.

We tend to work harder than necessary to over-deliver, according to multiple studies, including Hive and Ponemon Institute. But just because we can, doesn’t mean we should. I eventually learned that establishing yourself as a strategic partner sets the stage for more rewarding work and greater profit margins.

Fortunately, I was able to break free from my people-pleasing ways. Fast-forward 30 years, I am a CEO and an award-winning marketer. I wouldn’t have been able to achieve what I have without learning these four critical lessons as a strategic partner to my clients along the way.

Related: How to Protect Your Career From Those Who Try to Undermine You

1. Set the stage

Your vision is what got you here, and while you have the know-how to handle a dozen tasks, your job isn’t to execute someone else’s vision but to create your own vision and teach others how to implement it. Set the stage upfront by kicking off every project with a discovery phase. This initial stage of the project allows you time to perform background research and gain an understanding of your client’s history, their competitors and their target audience so that you can plan your strategy. As simple as you think it might be, present your findings to the client along with your strategic recommendations and the metrics by which you’ll measure success. And don’t forget to include the hours you spend on this discovery phase in your estimate — you should absolutely be compensated for this.

Remember those research papers you had to write in school? You’d have to tell the reader what you were going to tell them, then tell them and then tell them what you told them. In this case, show the client where they are, then show them where they want to be and finally, show them how you’ll get them there. Position yourself as the partner that can empower their team to execute your strategic vision.

2. Create a mantra

Have you ever listened to a speaker at a professional event that just blew you away? The most prolific orators follow a simple mantra. Instead of trying to say too much, they focus on a single message. Think of your favorite consumer brand‘s tagline. They use it in every ad spot and every creative campaign. A mantra is your personal tagline of sorts that ties back to everything you do. That simple mantra can help steer your pitches and presentations and keep you on track.

Related: How Investing in Strategic Partnerships Can Help Grow Your Business

3. Be curious

Early on in my career, I suffered a great deal of imposter syndrome. What if the client asked a question that I didn’t have the answer to? What if I was just dead wrong? I watched veteran strategists seemingly breeze through pitches and presentations and wondered how I’d ever be that confident. Years later, I was offered a chief strategy officer role. I breezed through pitches and presentations, too. But it certainly wasn’t because I was always right. It was because I was always curious. Yes, I did my research, I questioned thought leadership, I studied statistics and prepared for every meeting, but I was also genuinely curious, and that gave me the power to listen, really listen, to the questions clients asked and the arguments they surfaced. Sometimes, they changed my mindset, and other times they solidified my resolve.

4. Get comfortable with passing up business

Not every prospect you talk with or present to will be the right fit for your agency. When you’re starting out, you might be keen to say yes to any and all work that comes your way to ensure revenue. But there comes a point where you’ll need to turn down work that doesn’t further your own purpose. Establish the goals, the metrics, how long you think it will take and what other work you have that will eat up hours of your day. Don’t agree to their timetable — and if you must, add rush fees in order to get it done.

Enterprise clients can be intimidating, but they’ve come to you for a reason, so make sure you get what you need from them to be successful.

Let that confidence drive you to focus on crafting your strategic perspective. Being a strategic partner doesn’t mean you can’t ever be wrong. What it does mean is that you’re willing to test new theories, question the status quo and offer a unique perspective. And that’s exactly what your clients will come to value.

These are the four lessons I learned (the hard way, in most cases) in my first three decades of business. I hope they inspire you to position yourself as a strategic partner.

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Beth Newton

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October 21, 2022