Expert Shares His Guide To Business Partnerships
A well-structured business partnership “creates long term value and drives sustainable success” a leading expert has said.
Strategic advisor James Disney May says investing in entrepreneurs is about more than capital – it’s about finding the right individual who can turn an idea into a thriving business.
He said: “Many investors back visionaries who lack execution skills or operators whose ambitions don’t align with long-term growth. Success or failure often hinges on the alignment of vision, values, and execution strategy.
“But the best investors don’t just fund businesses; they invest in people. It’s not about having the best idea; it’s about backing the right entrepreneur to make it happen.”
“A well-structured partnership creates long-term value, driving sustainable success. Poorly structured ones lead to wasted capital, operational friction, and legal disputes.
Here, James outlines four strategic steps to ensure investors back entrepreneurs who can truly deliver.
- Identifying Potential Partners: What to Look For
“The best entrepreneurs prioritise execution over ideas. While many can develop a business concept, only a few can turn it into a successful venture. Strong entrepreneurs have already demonstrated progress, whether through product-market fit, revenue, or operational milestones. The best entrepreneurs don’t just talk; they build. Ideas are everywhere, but execution is rare. Investors should focus on those already in motion.”
“However, execution alone isn’t enough. Founders must also demonstrate resilience and adaptability. Market conditions shift, challenges arise, and great entrepreneurs adjust without losing momentum. The ability to pivot is what separates good entrepreneurs from great ones.”
- Building Rapport and Trust: The Early Conversations Matter
“Once a potential partner is identified, building rapport and trust is essential. The best entrepreneurs are confident yet coachable, engaging with investors without defensiveness. The best founders are confident but never arrogant. They know what they don’t know and seek the right partnerships to fill the gaps.”
“Beyond confidence, vision alignment is crucial. If a founder’s long-term vision clashes with an investor’s strategy, the partnership won’t last. A founder who doesn’t have a clear vision of where they’re going will struggle to take anyone along for the journey.”
“Risk tolerance must also align. Some founders favor rapid scaling, while others take a more measured approach. Investors should ensure their risk appetite matches that of the entrepreneur. Integrity is just as important. Any inconsistencies in numbers, exaggerated claims, or reluctance to provide transparency should raise concerns. One way to ensure this is by running reputation checks with former investors, employees, and customers to gain insight into a founder’s credibility.”
- Structuring the Partnership: Clarity Reduces Friction
“A well-structured partnership prevents misunderstandings and misaligned expectations. The first critical decision is the funding model—whether equity, debt, or a revenue-share arrangement—it must balance risk with potential upside.
“Next, decision-making authority must be established. Investors and founders should define clear lines of control, including board seats, veto rights, and operational decision-making frameworks. If control isn’t clearly defined at the start, expect problems later. Money alone doesn’t solve problems; how it’s deployed does.
“Setting performance benchmarks is essential, even if not implemented immediately. Whether focusing on revenue growth, profitability, or user acquisition, these metrics must be defined early to ensure both parties are aligned on success.
“Finally, clearly defined exit terms prevent complications if the partnership dissolves. Strong agreements include conflict resolution mechanisms to manage disagreements constructively.”
- Closing and Formalizing the Deal: Getting It Done
“Finalising a deal requires balancing diligence with pragmatism. While due diligence is essential, in verifying financials, intellectual property, and contracts, excessive scrutiny can derail promising partnerships. A deal that takes too long to close is often a deal that was never meant to happen.”
“Negotiating fair terms is equally important. While investors seek advantageous deals, an overly one-sided agreement erodes trust and undermines collaboration. A well-structured execution plan sets clear priorities and a timeline for capital deployment, ensuring a strong start.
“Transparent communication with stakeholders, employees, customers, and co-investors is key. Everyone involved should understand the deal’s impact to ensure a seamless transition.”
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