Why Partnerships Work — and Why They Fail

This article focuses on How to Choose, Assess, and Fix Business Partnerships Before They Break You. 

The Promise of Partnerships

Business is tough to do alone. Partnerships can accelerate growth by pooling resources, splitting risks, and combining strengths. Steve Jobs and Steve Wozniak built Apple in a garage because one had vision and the other had the technical brilliance to execute it. In many cases, one plus one really does equal three.

But for every Apple, there’s a story like Facebook’s early days, where Mark Zuckerberg and Eduardo Saverin clashed over equity, trust, and vision — and ended up in court. Partnerships can be rocket fuel, but they can also be the spark that burns a business down.

So, how do you know which way yours will go?

1. Shared Vision vs. Separate Agendas

The strongest partnerships begin with clarity: Where are we going, and why?

• When it works: Jobs and Wozniak were united in building “a computer for the rest of us.”

• When it fails: Many joint ventures collapse because one partner wants rapid growth while the other wants stability.

Write down the long-term vision before signing anything. If your “end game” is different, conflict is inevitable.

2. Trust and Transparency

Trust is the invisible contract holding everything together. Without it, even legal agreements won’t save you.

• When it works: Ben Cohen and Jerry Greenfield (Ben & Jerry’s) built not only an ice cream empire but a culture of honesty and shared values.

• When it fails: In WeWork’s early days, Adam Neumann’s lack of transparency with investors — and even close partners — eroded confidence and destroyed billions in value.

Transparency builds resilience. Schedule regular “open book” sessions to discuss finances, expectations, and decisions.

3. Complementary Strengths vs. Overlap

Partnerships thrive when each partner brings something the other lacks. They fail when skills overlap too much — or when one partner doesn’t carry their weight.

• When it works: Bill Gates (strategy and business) and Paul Allen (technical genius) were the perfect blend for Microsoft’s rise.

• When it fails: Many family businesses collapse because siblings or cousins step into similar roles without clear boundaries, leading to ego wars.

List out each partner’s unique value. If you can’t articulate it clearly, you may be setting yourself up for conflict.

4. Clear Roles, Clear Boundaries

Ambiguity is a silent killer in partnerships.

• When it works: At Google, Larry Page and Sergey Brin eventually defined their roles with Eric Schmidt as CEO to balance operations, allowing innovation to flourish.

• When it fails: Countless small businesses implode because both partners try to be “the boss,” leaving employees confused and strategy fractured.

Titles aren’t everything, but responsibilities are. Document who decides what, and revisit regularly.

5. Handling Power Dynamics

Every partnership has power imbalances. Pretending otherwise is dangerous.

• When it works: Oprah Winfrey and Gayle King’s personal/professional dynamic works because each acknowledges and respects the other’s role.

• When it fails: Twitter’s founding team saw repeated fallouts (Jack Dorsey being ousted, then returning) because of unresolved power struggles.

Discuss equity, decision rights, and exit strategies upfront. It’s easier to talk about power before it becomes a problem.

6. Reputation and Alignment of Values

Partnerships don’t exist in a vacuum. Your partner’s reputation becomes yours.

• When it works: Starbucks’ Howard Schultz built a company culture where values were central, making his partnership with early investors and leaders sustainable.

• When it fails: Many startups die when one partner’s personal issues (addiction, dishonesty, legal trouble) taint the business brand.

Do your due diligence. Check not just financial capacity but character and history.

Should You Partner Up?

A great partnership can double your speed and impact. A bad one can cost you everything. If you’re considering one, ask:

• Do we share a vision?

• Do our strengths complement each other?

• Do we trust each other enough to be transparent?

• Do we have clear roles, boundaries, and exit options?

If you already have a partner, use these questions as a health check. Weaknesses identified early can be fixed — but ignored, they’ll break you.

At the end of the day, partnerships aren’t just about contracts. They’re about people. And people make or break the business.