Partnering with someone over a business, whether this is a start-up or going into a business partnership with an existing business is always a gamble. How you wish that every partnership is a success, but there are reasons why they fail as well. Failed partnership businesses are products of a lot of things. Aside from the fact that there are no clear agreements on important stuff like finances, roles, and exits plans, there are some business partnerships that fail because of lack of research, and a poor understanding on why they should partner with someone.
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Failed Partnership Businesses
The following are examples of failed business partnerships, and outlined are the reasons why they failed. I will explain the other side of the coin so that you would not fall into the same trap in case you want to enter into one:
· Not being honest with each other. Apple and PayPal are just one of the few failed partnership businesses, which did not take off even before it started. Insider business stories have shown that Apple did not engage PayPal as a new payment platform because they found out that the latter have partnered with Samsung even before they went to the negotiations table.
· Failure to be on the same page. I have mentioned this before that failed partnership businesses start when you have not laid down certain expectations on key important elements of the business. This is what happened to the partnership of NASA and Lockheed. This would have been an ideal business partnership not until they realized that NASA uses a metric system and Lockheed uses a traditional English system. Two measurement systems led the partnership into a failed one.
· Failure to make good predictions in terms of sales. This is what happened to Quaker and Snapple. Snapple is a very hot product, but Quaker did not thoroughly research on the sales and predictions on how it would fare in the long run. Snapple was famous, but Quaker did not factor in the numerous imitations it had that compromised the sales of the business.
· Failure to watch out for trends and gimmicks. Stakeholders invested in the trendy The Fashion Cafe and Planet Hollywood. Sure they are two of the most popular business but what you should really look out for are trendy companies that do not stand the test of time. Counting on gimmick alone is one of the recipes of failed partnership businesses. Stakeholders soon bailed out of the company.
· Failure to check on the quality of the product. The partnership business of Sharper Image and Ionic Breeze took a downturn. This is because Ionic Breeze did not live up to its promise of purifying the air as this was just a media gimmick. You should only partner with businesses, which maintain high quality products.
Understanding What You are About to Venture In
It is important that you have done your research, talked to people, studied the books, and take a look at future forecasts even before you sign that business partnership agreement. Failed partnership businesses can happen before the contract has been signed and during the business operation. It is important that you see the signs and have done a thorough feasibility before venturing into one.