Partnership is probably one of the most simplest form of doing business ( ofcourse after “sole proprietership”).
All you have to do is to enter into an agreement with the other partners, agreeing on the terms on which the business will be handled and managed by the partners.
But before you go for the agreement there are few things every partner must keep in his/her mind.
Things to Consider When Entering Into A Business Partnership
1). Compatibility Check
Just like chosing a life partner, you do several compatibility checks before you enter into a marriage or engagement you must think several times about if that other partner/s is/are compatible with you.
Since once you enter the agreement you will be working together and if you guys do not understand each other well then the Business is gonna suffer for sure.
2). Partners must be complimentary to each other
It is important in a Business Partnership that the things that you can’t do well for a business your partner/s must be able to fill up that skill gap well.
Every partner need to be master in their own field, and all of them must be taking care of their own work departments. This will make them mutually exclusive at their work and thus will make each of them more valuable asset for their firm.
Since they will not be putting their nose in other’s work, partnership will go well and each of them will be able to grow their own departments well working together progressively
3). Common Long Term Goals
Before you enter into a Business Partnership you must enquire with the other partners about their long term life goals. It is important to have common long term goals, since your company’s future will depend upon it.
If for example one of your partner is not seeing himself/herself doing business anymore in after 5 years or say after 10 years then this is going to be tough for you to be with him/her in a same business.
4). Seriousness about the Business idea
Before Entering the agreement, whether it’s you or any of your partner.. if any one of them doesn’t have faith in the Business Idea, then he/she must not enter into the Business Agreement.
Company once formed and start running, your employees will be dependant on you and thus you have to be damn serious about your business, and should take the steps wisely.
5). Fair Share in the Business
If you are entering into a Business Partnership, it’s important that each of the partner must invest (in terms of money and hard work) in equal proportion and not just 1 or 2 of the partners doing all the work.
And all of them must get a fair share in the business’ profits/losses and not just 1 or 2 of them are taking the burden of others for some reason.
From my past business formation ( both successful and unsuccessful Business partnership attempts) experiences, aforesaid points were the things I learnt from those experiences and I truly believe each of you reading this article should seriously consider them before entering into any Business Partnership.
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