Partnerships account for only seven percent of all businesses in the U.S. They can be one of the most challenging relationships, even when both parties have known each other for some time. While many partnerships result from careful planning and years of mutual trust, the most intriguing ones involve a few daring individuals who built their businesses with someone they met by chance.
While starting a business with a stranger may defy conventional wisdom, serendipity has played a pivotal role in the launch of many well-known companies. These unexpected collaborations led to ventures that have reshaped industries and set new benchmarks.
However, for every success story, countless other partnerships never see the light of day. The journey from a chance meeting to a thriving business is fraught with challenges. Yet, the stories of those who have successfully navigated this path are inspiring for anyone who hopes to find their perfect partner.
Rarity and Magic
Many entrepreneurs find their business partners among college buddies, former colleagues, or within their network. However, a small subset discovered synergy with complete strangers and formed successful businesses. While rare, there are a few well-known examples.
Steve Jobs and Steve Wozniak were introduced by a mutual friend in 1971 while working at Hewlett-Packard. At the time, Wozniak was in college, and Jobs was still in high school. Their first business partnership involved building “blue boxes,” devices that enabled anyone to make long-distance phone calls at no cost. By 1976, Wozniak completed the basic design of the Apple I computer. When HP turned down the option to purchase it five times, Jobs and Wozniak started a business of their own. On April 1, 1976, Jobs and Wozniak formed the Apple Computer Company. And the rest is history.
Even some long-standing companies were started by relative strangers. William Procter and James Gamble were brothers-in-law. Procter was a candlemaker, and Gamble was a soapmaker. Their father-in-law suggested they join forces and become business partners. In 1837, they formed the partnership, eventually becoming one of the world’s most successful corporations, Proctor & Gamble (P&G).
During the Civil War, the company supplied soap and candles to soldiers. P&G was the first company to advertise nationally; its sponsoring of radio serials coined the term “soap operas.” P&G’s success was not only based on good timing and market opportunities but also on the shared values of its founders. P&G was one of the first companies to give its employees shares in its profits, further establishing itself as a trusted retail brand.
Business Romance Isn’t All Bliss
Partnerships don’t always work out, even if you connect with someone and share a vision for a company. According to Forbes, the divorce rate for partnerships is 80%.
Eduardo Saverin and Mark Zuckerberg, the founders of Facebook (now Meta), are a perfect example of a good thing gone bad.
Saverin and Zuckerberg formed their partnership in 2004, with Saverin providing most of the capital for servers for theFacebook.com, the precursor to Facebook. Within a month of launching, the site was doing so well that Zuckerberg, Saverin, and a third Harvard sophomore named Dustin Muskovitz formed The Facebook LLC.
As the company grew rapidly, operations were moved to Palo Alto, California. Saverin went to New York for an internship at Lehman Brothers.
The distance between the two proved to be the death knell. Facebook was gearing up for a round of funding. Saverin was reportedly unresponsive to requests to fly to Palo Alto to sign off on the reformation of Facebook as a company under Delaware law—a crucial step before any funding deals could be completed.
Eventually, Zuckerberg solved the problem by cutting Saverin out of the company. By creating a new Delaware corporation to acquire the old company, shares in the new company were distributed to everyone except Saverin.
By 2005, Saverin’s 34% ownership was slashed, and his label as co-founder was dropped. Saverin retaliated by trying to ruin Zuckerberg’s reputation in the press. He convinced Ben Mezrich to write the book Accidental Billionaires, which was later turned into the movie, The Social Network.
Saverin also took legal action, suing Zuckerberg and winning back a 5% stake and his name on the masthead. As a part of the settlement, Saverin stopped talking to the press.
Now a venture capitalist, Saverin derives most of his wealth from his small but valuable stake in Facebook. He renounced his U.S. citizenship to avoid paying taxes on his Facebook wealth and now resides in Singapore.
Navigating the Pitfalls
Starting a business with a stranger isn’t without its challenges. Not only do both parties need to share the same interests, but their mission and values must align as well.
Above all else, trust is foundational in any partnership. Without a history together, there’s a higher risk of having different visions for the company’s future. Both parties must be focused on the same goals and prepared to put in the time required to make the business successful.
Both partners should be willing to shoulder the risk. If one is more invested than the other, the company could unravel very quickly, or one partner may opt to dissolve the partnership. While success in any business is never guaranteed, it’s even more important in a partnership to lay out the legalities and specifics should a dissolution be necessary. These steps are also necessary to outline what happens if one partner dies. Draft a partnership agreement to outline the nature of the partnership, capital contributions, profit and loss distribution, and exit strategies.
Before taking the plunge with a stranger, performing due diligence and researching your partner and business idea is essential. Look into their professional background, speak to their references, and understand their financial situation. Before diving into a full-fledged business, consider collaborating on a smaller project to test the waters.
Clear and frequent communication is also a critical component for success. Set clear expectations from the start. Discuss roles, responsibilities, and what you both hope to achieve.
If you know a partnership is not working, it may be time to break up. That doesn’t mean it will be easy; vicious money disputes and ugly legal battles are usually part of the process.
Taking the Plunge
While starting a business with a stranger might seem like a gamble, with the proper steps and precautions, it can lead to success. The business world is as much about instinct as it is about spreadsheets. Sometimes a chance encounter might just be the spark for a successful business venture.
Below we highlight three local duos who found their perfect strangers and turned their chance encounters into profitable businesses.
City Brocante
Partners, Alicia Williams and Lisa Luchka
How did you meet?
We met at toddler time at the Cuyahoga Falls library when our children were young. It felt like we had always known each other. We both had crazy teenage years and many things in common. We love buying old things and using them in our homes. Vintage items were often made better and of better quality. We love finding beautiful, functional decor to refurbish and give them new life.
How long did you know each other before starting your business?
Seven years.
What are your backgrounds?
Lisa is a social worker with an MSW degree. Her mom and aunt sell antiques, so she has been around them her whole life. She is also a collector and has always loved hunting for items at flea markets and roaming around antique shops. Alicia is an RN. She has a large collection of 50s-70s clothing that she wears. She also loves funky bright decor that pops.
How long have you been in business together?
A little more than a year.
What challenges did you face?
The biggest challenge for us has been the business aspect of things. As a social worker and nurse, neither one of us knew much about running a business. Things like tracking inventory, marketing, and taxes have been challenges. We are learning as we go and hopefully will keep improving on how we do things!
How do you divide responsibilities?
We make major decisions together. Our responsibilities fall to whichever person can do it best. For example, Lisa is great at creating beautiful vignettes and setting up spaces in the shop to display our items. Alicia is good at cooking and ensures Lisa eats; otherwise, she would starve.
Do you interact socially with each other?
We thought being in business together would mean we would see each other more, but between our other jobs, the shop, and our kids, we don’t have much free time for socializing. We enjoy hanging out together, which usually involves restoring furniture or antiquing.
What’s been most rewarding?
The creative process of redoing furniture and other decor and making it look fabulous again is lots of fun! We love when someone comes into our shop and falls in love with an old piece we have made new. We have turned some pretty beat-up vintage pieces into fabulous decor for people’s homes.
How do you see your partnership evolving?
We see ourselves doing more custom furniture pieces for customers. We also think it would be fun to add a decor consulting business to help people transform their living area into a space they love.
Would you have done anything differently in the early stages?
We would have had a better business plan. We went into this venture without having a good plan.
Do you have any advice for others?
As far as starting a business with a stranger, we are blessed to trust each other, which is an essential aspect of our business relationship. Being in business with a truly good person is important because you are really taking a risk together and investing a lot of time and energy trying to build something. You must be able to rely on and count on each other to reach that goal. Full transparency is also needed.
Style Counsel
Partners, Megan Hurley and Leah Marino
How did you meet?
We met at our former place of employment, MC Salon, Spa + Studio. Megan handled business development, and Leah was the social media/marketing manager. The pandemic forced us to work remotely. It was during that time apart that we realized we missed working together. We met a few months later and decided to team up.
While we couldn’t be more different as individuals, we share the same values, work ethic, and vision. Our partnership is the perfect blend of skills and allows us to help businesses with their creative and marketing needs.
How long did you know each other before starting your business?
About 10 months.
What are your backgrounds?
Leah’s background is primarily in the hospitality and service industries. Megan’s background is in business, marketing, and makeup artistry.
How long have you been in business together?
Three years.
What challenges did you face?
We’ve faced many challenges—mental, physical, emotional, financial, spiritual—and sometimes all of them at the same time. We’ve spent a lot of time learning about each other and ourselves to work as a team as best as we can.
There’s a saying we both love, “Choose your hard.” Owning a business is hard; however, so is working for someone else. It’s all about perspective and what you value. For us, we’ll take that challenge every time. We share an inherent drive, almost a need, to constantly figure things out and problem-solve, which partially attracted us to owning our own business.
How do you divide responsibilities?
We respect each other talents and strengths and remove emotion from our decision-making process. This evolved over time as we shared more experiences together. Responsibilities are divided naturally now based on each of our strengths. We’re very different, allowing us to pick up where the other drops off. That applies to everything from work tasks to emotional support.
Do you interact socially with each other?
We spend so much time together at work that when we have free time, we enjoy spending it with our Daves (our romantic partners are both named Dave), our families, or by ourselves. We respect each other’s space but also share a circle of friends.
What’s been most rewarding?
Our partnership itself is rewarding. We’ve seen the absolute best and worst of each other, and we still show up for each other every day.
This past January, we had a big client win that was professionally and personally rewarding. We became aware of Operation Underground Railroad, a nonprofit that helps rescue and support victims of human trafficking. We were so moved by their mission that we set up a fundraiser to tell their story, which was featured on the local news and garnered more than 70,000 online views.
How do you see your partnership evolving?
As long as we continue to nurture our business, it will grow. We have visions and plans; however, we’ve learned to remain open to all possibilities, stay present, and enjoy the ride. The magic is in the journey and the process, not the destination.
Would you have done anything differently in the early stages?
We would have asked for help sooner. Our community has played such an important role in our growth and expansion. We learned it’s OK not to have all the answers, seek help, and look for guidance.
Do you have any advice for others?
As for starting a business with someone, it’s not for the faint of heart. Both partners must be committed and willing to be patient, uncomfortable, live with uncertainty, take risks, and even fail. Like any other partnership in life, it requires work and intention. You must remain focused and motivated because your passions may wane. You will be tested and pushed to your limits. But you must continue to believe the whole is greater than the sum of its parts.
The Wellness Den
Partners, Britney Cirullo and Amanda Shaw
How did you meet?
We met at Falls Yoga and Barre. Amanda was teaching, and Britney came in for a class. Both of us were interested in starting a yoga/wellness studio but needed to find a partner to do it. We chatted after class and decided to get coffee together. We discovered we’d both been practicing yoga for nearly 15 years and had a lot of common ground spiritually. We are passionate about helping others and spreading love, kindness, and healing to our communities.
How long did you know each other before starting your business?
We decided in about five minutes at that first coffee meeting. There was something about our individual strengths and the divine timing of it all that just felt right. We dove right in.
What are your backgrounds?
Amanda spent many years in corporate HR and business. She shifted her career path four years ago to yoga and energy healing. Britney’s background is in neuroscience and mental health counseling. She started her first business, Alternative Therapeutics, five years ago to bring holistic mental health practices to the area.
How long have you been in business together?
Less than a year.
What challenges did you face?
We didn’t have too many challenges initially. The aspects of business planning and building out the space went very smoothly. The challenges we navigate now are primarily around educating and spreading awareness. Many of our offerings are unique to the area and often unfamiliar. Our mission is to help educate people on how our classes, services, and workshops can help them with their specific pain points, challenges, and healing. It may sound cliche, but we feel as if we’ve known each other for many lifetimes. We align in so many ways with our mission and purpose in life that we trust in the serendipitous connection we made.
How do you divide responsibilities?
We very quickly pinpointed our strengths as individuals and divided our duties. Decisions about offerings, collaborations, growth, etc., are a joint effort. Amanda handles most of the day-to-day studio operations, and Britney focuses on business development, growth, and outreach.
Do you interact socially with each other?
Yes! We love spending time together and have become very close friends. We both enjoy being outdoors, listening to music, and enjoying all that life has to offer.
What’s been most rewarding?
Seeing our dreams come to life as we opened the space and held our first team meeting. Our hearts were so full seeing these magical, incredible healers. The aesthetic of our studio space turned out better than we could have imagined. We’ve both also been blown away by the strength of our partnership. We complement and balance one another perfectly. Partnerships are never 50/50, but we support each other through personal struggles and when time, space, or healing are needed.
How do you see your partnership evolving?
We share a lot of ideas for future growth and opportunities. We want to create a greater impact on the well-being of our community through aligned partnerships, healing retreats, and adding additional healing modalities. We foresee ourselves growing into a larger space within the next five years.
Would you have done anything differently in the early stages?
We both dream big and are full of optimism. If we could go back in time, we may have tried to be more realistic regarding the trajectory of our growth and the time required from both of us to reach those growth goals.
Do you have any advice for others?
Follow your heart, listen to your inner wisdom, and find ways to communicate abundantly. A gift of our partnership has been honest communication. We don’t avoid the hard topics or difficult conversations, and we’re not afraid to ask each other for help.
