Do you know what your partner is thinking?

The creation of new business partnerships continues to grow with the popularity of LLCs. In our practice alone, the number of LLCs, PLLCs, and LLPs represented in excess of 75% of the new entity formations during 2006. Regardless the entity form, the number of multiple-owner businesses continues to increase and this trend will most likely continue in the future. That said, while these new business partners will do whatever is necessary to bring business in the door, the one thing we find again and again is their lack of attention to communicating with one another.

For whatever reason, over the years, we have been fortunate enough to counsel with a number of business partners on a variety of matters. In doing so, more times than not, it becomes apparent that these partners do not communicate effectively with one another. I'm not talking about an inability to plan the business together, or meet with customers; I'm talking about simple, daily communication with one another. And, in many instances, this lack of attention to simple communication creates a disconnect between the partners and within their business. Moreover, in almost all cases, these disconnects created major, albeit tacit problems.

Communication between business partners is tantamount to maintaining a healthy partnership, and is analogous to the maintenance of a healthy marriage. I am currently counseling with a partnership that has incredible business dynamics, but they fell into the trap of losing respect for the simple task of "talking" to one another. Their paths diverged, and their business suffered as a result. Their ultimate willingness to listen to someone independent of the situation was tantamount to their admission that the health of their partnership was in danger. They have made the commitment to renew their partnership, make time for one another, and are on their way to healing their partnership. There will still be bumps, but if they commit to the process, and one another, they most likely will make it.

Regardless other distractions, business partners must MAKE the time to sit down and talk to one another, and keep the lines of communication wide open.

Several years ago (2003), I wrote an article for the The Practicing CPA called "Preserving Business Partnerships" addressing this burgeoning problem; check it out.

-go figure-