Based on my observation, I can see that nearly every entrepreneur has a business partner in their lifetime. Partnerships are usually set up to reap the expertise that each person can bring into the business. This is because two or more heads are better than one. When you form a partnership, you had sharing the responsibilities and may be able to offer a greater range of services.
However, there’re still a lot of people feel that it’s a bad idea to go into business with a partner as you will be splitting your overall profit. For me, we should try to think in another way round as a partnership can actually help increase your overall profit. The reason is because the person that you are collaborating with may be able to help you attract more customers, as well as get more work done to provide reliable services to customers.
Besides that, the ideal partners should be able to complement each other. They need to have complementally skills for each of them. For example, if the business is providing the web solutions to customer, then one need to have more knowledge in web design and development while another one needs to have some experience in sales and marketing.
So, at the beginning stage, it’s important to set out duties and responsibilities for each partner in detail which should include roles and responsibilities, how much capital for each person need to contribute, how profits are to be shared, how dispute would be resolved, what happens if the business strategy does not work out and what happens if the staff that employed fail to deliver his job function.
My Last Word of Advice
It’s always safe to start small business first because you can never tell if your business would succeed or fail. From there, you would gain experience, grow the business and when the time comes, you can invite more partners to come in.
Of course, we also need be smart in allocating the financial resources in order to let business run smoothly. Financial management is the most important asset to a company. This is because if the partnership is in debt, all partners have to share the liabilities. If your partner cannot pay, you have to bear 100% of the liabilities in order to make your business sustainable.