How to build a successful business partnership

Despite the pandemic and the ongoing unrest in South Africa, the World Bank projects a gross domestic product growth (GDP) of 4%, bringing good news to some of the South Africa’s most valuable brands.

And it’s thanks to this increase in GDP that we’re seeing more business partnerships emerge. Companies are acquiring other companies for a number of reasons, including diversification, increasing market shares, increasing synergies, an easy way to enter foreign markets, reductions in cost and much more.

But whether you’re considering a business partnership or you’re in the process of an M&A transaction, there are a few things you can do to ensure a successful partnership.

Set expectations from the off

Once you’ve found the right partner, you can work together to build a partnership that will benefit you for a number of years, but it’s important you set expectations from the beginning. When building a partnership it’s important to leave the emotions out of it, even though it can be hard if it’s a brand you’ve built from the ground up.

Setting expectations and creating a clear and detailed description of the partnership will help everyone understand what’s happening and their roles. It will also ensure customers and clients are being told the same things. 

Treat them as part of the team

Setting out clear and well-defined roles will help ensure no one feels pushed out by the partnership, but it will also help embed a sense of camaraderie instead of competition. Not creating a cohesive team is one of the main reasons many business partnerships fail

In order for a partnership to be successful, mutual understanding and respect must be garnered alongside a thirst for learning, growth, knowledge and experience.

Make it mutually beneficial

Ultimately, for a partnership to be successful, it needs to be mutually beneficial. For example Global multi-asset broker Tickmill have recently partnered with social trading platform, TradingView.  Duncan Anderson, CEO of Tickmill UK Ltd said:

“Our partnership comes as the next logical step in providing traders with a seamless Futures trading experience. At the start of the US session, TradingView has a staggering 14,000 simultaneously active users. With such a large client base, it makes sense that we provide our clients with the opportunities afforded to users of TradingView, coupled with the exceptional trading conditions that only Tickmill can offer.”

It’s important that the partnership serves a purpose to both enterprises and helps with the longevity of both.