Partners conflict-Part 2

As a young graduate, I was desperate for job after I lost my first job, so I took the first offer that came to me without really doing the necessary check on the company business and financial standings.

I was hired as business development manager for a Houston, TX, based IT company. The company goal was to expand globally and have a presence in the Arab world. My job was to find a local partner in Saudi Arabia who would be willing to market our IT solutions in the local market.

Again, I faced the same issue with partners conflict and the lack of managing experience. The owner of both companies, in the US and in Saudi Arabia were engineers with little business experience. This time I was the manager in charge to run the partnership, my plan was, in order for the partnership to be successful, both partners must have enough capital invested to cover business expenses for at least two years before any profit could be generated. Being in a foreign market requires patience.
Again, both partners were making individual decisions without regard to the interest of the partnership and again the end result was a failed adventure.

The lessons learned:
1- If you are going to get into a partnership, make sure each of the partners has a solid business vision.
2- Insist that the partner(s) with limited experience to be a silent partner, not involved on day to day business planning.
3- If a partner had a successful career as an engineer or as lawyer, that doesn’t mean he or she will be a successful business manager.
4- If you spot a trend at your company of partners conflict, get ready to leave, usually it never gets resolved.

Conflict of interests between business partners is a serious issue, and if it not resolved at early stages, it will have serious consequences on the business.