Many business partnerships have failed while others have been successful. Some have gone into business partnership with high expectations without thinking of the implications which later resulted into a break-up leaving deep wounds.However, it is important to note that a business partnership has its advantages and disadvantages.First, we shall look at the reason why some go into partnership and secondly tips you need to know and do before going into a business partnership.
One of the main reason some go into partnership is the lack of capital to start a business.You may have a great idea but lack the capital, so you decide to find someone who will provide the cash to fund your business; he or she becomes your partner. Another reason is that you may have the capital but you may lack some skills you need to run your business profitably; for instance you may be good at production, but you have very poor skills in marketing; you recruit people but they are not up to the task, then there is this friend you know that is a marketer by birth, you can't just employ him you decide to partner with him.
However, if you decide to partner with someone take note of these very important points.
1`. Try to find the type of person your partner is
A partnership is like a marriage in which both sides are bound by a contract or agreement; there is a lot of similarities between a business partnership and a marriage. Before two people get married they try to know each other first(courtship period) so that to find out whether they can accommodate each other character. Likewise try to find out the personality of your partner. For instance, if you go into partnership with someone that smokes, womanises or gossips and you hate those vices, later or sooner this might cause friction between two of you; initially you may overlook these vices but later or sooner your patience and tolerance may run out and these issues will become a sore point the moment the business starts to make money.If you know you can't bear his or her characters do not go into partnership with such one.
2. Don't expect your partner to be perfect
Before going into partnership it is important to note that your partner has his strength and weaknesses and that at time you will have some misunderstandings over issues. But how you go about resolving these issues will determine whether your partnership will last or not.Even before you proceed with the deal discuss with him or her all issues in detail. During the discussion listen carefully to what he or she says, maintain eyes contact, ask him or her why, how, when, etc of things do not overlook matters saying that when the business will start it will be resolve; tell him or her what you expect from him or her. This will enable you to know whether you have enough things in common to warrant proceeding with the partnership deal.
3. Never go into business partnership without signing a written agreement with witness
At times we neglect to have a written agreement stipulating in detail the terms of the deal because we assume that since we are friend, we trust each other; or another reason is that you may be junior person either in terms of age difference or in terms of what you are contributing financially to the business and you may feel that you are asking too much if you insist on a written agreement. If your partner to be tell you that there is no need to sign an agreement never go into partnership with such one because when the business will start making money, he or she will react differently to your surprise.
Therefore, keep in mind the points above if you want to proceed with a partnership deal with someone; there are advantages and disadvantages; but it is how you and your partner stick to your agreement, accommodate each other when resolving problems that will determine the success of your business partnership.
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