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However, many believe that the personal conflicts common in a partnerships more than offset the benefits, and partners often fall short of one another’s expectations-sometimes far short of what was anticipated, as was the case for Richard Rhodes’s failed partnership (see In the Spotlight at the beginning of this chapter). Of course, decision making is more complicated in partnership because leadership is shared, and owners must also share their equity position in the business, which naturally dilutes the control of each partner. While some of the difficulties of partnerships are financial in nature, most are relational-for example, coping with a partner’s dishonesty or dealing with differing priorities. Partnership clearly have both disturbing and redeeming qualities, so the issue is not black and white. The important point is that a partnership should be formed only if it appears to be the best option when all features of the enterprise are taken into consideration.
Many entrepreneurs have learned about partnership the hard way-from “the school of hard knocks.” Based on the experiences of those who have seen firsthand the extraordinary ups and debilitating downs of partnerships, the following suggestions may help entrepreneurs make the most of this form of organization: