Throughout my career, I have had the opportunity to invest in and/or purchase several businesses. Some were great successes, while others underperformed or even failed. Reflecting on these experiences, I can say with confidence that having the right business partner(s) has been a key ingredient to success.
I believe that difficult situations are when a partner’s true character and value shine. Over the past 25 years, I have been privileged to work with Carl Grassi, a highly accomplished attorney, across several ventures. In reflection on my experience with successful partnerships, here are the six key pillars I’ve found to be essential:
1. Trust. Trust is the most critical part of any successful partnership. Without it, I believe the probability of success diminishes dramatically. Trust between partners should in turn permeate the entire organization, helping to foster a culture of integrity and collaboration.
2. Complementary skill sets. Partners with complementary skills bring a broader perspective to the table. Whether one excels in financial strategy while the other shines in operations or marketing, aligning these strengths creates a synergy that can serve to propel a business forward.
3. Relentless work ethic. Each partner must carry their weight and meet their agreed upon responsibilities. When effort is imbalanced, resentment can fester, undermining a partnership. Aligned values and a shared commitment to hard work ensures mutual respect and accountability.
4. Conflict resolution. Conflict is inevitable in business and navigating it effectively is an important skill. Successful partners will respect each other’s convictions and engage in open, constructive dialogue. This fosters cohesiveness and leads to sound joint decision-making. A track record of resolving conflicts builds confidence, enabling partners to tackle future challenges with resilience.
5. Financial stability. A partner’s financial stability — both personal and professional — is critical. Business decisions should never be compromised by one partner’s personal financial situation. Being on the same page about fiscal responsibility ensures that the business operates without external financial pressures, providing a stable foundation for growth.
6. Communication. Open and honest communication is non-negotiable. Partners must feel comfortable addressing problems head-on, especially when things aren’t going as planned. Clear communication helps the team align quickly and resolve issues before they escalate.
In my career, I’ve been fortunate to have great partners. That’s not to say that every venture has always gone smoothly, but having a strong partner beside me in the trenches during tough times has been invaluable. When challenges arise — and they will — having the right partner in the bunker with you makes all the difference.
Fred DiSanto is chairman and CEO at Ancora.
