Partnership & Growth

Creating A Successful Business Partnership; What To Watch Out For To Avoid Pitfalls

Business partnership - cfamedia

When it comes to creating a successful business partnership, there are things that you need to get assessed. Failure to implement them can lead to an early dissolution of the partnership.

First, the word, “Partnership”. A partnership is the coming together of two or more people, who pooled their resources together, in order to co-own a business.

Some partnerships include individuals who work in the business, while other forms of partnerships may involve partners that have limited participation and also limited liability for the debts and lawsuits against the business.

A partnership is also an arrangement, where parties, known as partners, agree to cooperate to advance their mutual interests. The partners in a partnership may be individuals, businesses, interest-based organizations, schools, governments or combinations.

There are 3 types of partnerships and these are explained below:

General Partnership: This is a form of business arrangement, whereby, partners share all profits and legal liabilities. This kind of Partnership leans towards unlimited liability, which means that their personal assets may be liable to offset the partnership’s obligations, in case of default.

Limited Partnership: This is a type of business arrangement that, has one general partner, who sees to the day to day running of the business, with one or more individuals, who are limited Partners, but do not participate fully in the operation of the business. They also do not have liability.

Limited liability Partnership: This is a type of business partnership arrangement, whereby, all partners are covered from liability.

Below are key points you should note when creating a partnership business;

Background Check: Ensure that you carry out research on your potential business partners. Know everything that you need to know about them, is necessary, so that, you will e assured that you are not dealing with fraudsters. Ensure that they are stable intellectually and emotionally, before bringing them on board your company.

Connect with Partners that are on the same frequency with you: When you are about to create a partnership business, ensure that you choose partners that, understand what you are embarking on and the price that has to be paid.

Partners that are on the same wavelength with you, in terms of the zeal and passion to push the business and ensure its success, are most likely to be a cog in the wheel when the actual Partnership business commences.

Connect with Partners that are skillful and experienced: You need to connect with partners, who are expert in what they do, as the rate at which the company develops, will be gauged by the expertise and experience that each partner brings into the business.

Connect with Partners, who are financially stable: Ensure that, your potential business partners are financially stable, with no lingering debts.

This will allow you and the other partners to focus on growing the business and not being pursued by creditors, who might decide to create a scene at your business premises, thus, giving the Partnership business a bad image that could spell doom for it.

Connect with Partners that have integrity and are trustworthy: This is very important, as people without integrity and that are not trustworthy, may just ruin you, by siphoning the funds meant for growing the company, into their own purse.

Partners that do not have integrity will also engage in cheating the company, by hijacking jobs that, should ordinarily have been carried out by the partnership business, collecting the fees for it and pocketing same for their exclusive personal use.

Mutual Respect: Create a business partnership with someone you respect very much. Having mutual respect among the Partners will go a long way, in solidifying the bond that exists between you and all the other partners. This will also ensure that everyone in the partnership business works for each other.

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