Partnerships in the Recruiting Industry can creating a winning dynamic or spell certain disaster. Before jumping into any form a business partnership consider the following thoughts:
SHARE THE SAME VISION ~ For any partnership to be successful, everyone involved must agree on the same strategic direction of the company. If one partner wants to build a national agency, while the other is happy being a one man shop the business has no common ground and can fail in no time. Take the time up front to develop a clear course for the business that meets the needs of all owners.
DEFINE ROLES ~ A winning dynamic will capitalizes on the strengths and skills of all owners. Divide business responsibilities according to each individual’s strength. Most recruiting partnerships are divided between sales and recruiting. With these kinds of responsibilities, defining financial goals for each role will also assist in creating that winning dynamic.
AVOID THE 50/50 SPLIT ~ As recruiter it may seem logical and fair to split the share of ownership and into an equal 50%. However, this structure will most likely cause a decision stalemate in the future. A number of solutions include using a 49% to 51% split or creating a simple outside board that can be consulted for large issues.
HOLD PARTNERSHIP MEETINGS ~ Any strong relationship is built on open communication. Meeting at scheduled intervals (weekly, monthly or even quarterly, but regularly scheduled!) will give owners time to discuss strategies,go over grievances, review roles and ensure all owners are meeting expectations.
PARTNERSHIP AGREEMENT THAT INCLUDES A DISSOLUTION AGREEMENT ~ In Recruiting it is too simple to set up and end partnerships because no legal documents are required. Potential problems can be easily averted by taking the time to draw up a legal partnership agreement that includes the mechanisim of starting, running and ending the partnership.
Being an entrepreneur in the Recruiting Industry is both exciting and nerve wracking at the same time. Being in a partnership can most certainly ease some of those stresses. By not having a game plan on how to handle contentious issues correctly, owners will spend more time overcoming internal issues, rather than running their new venture.
Taking the time up front to get it right!
Rebecca B. Sargeant
~ Recuiter’s Coach ~