The Best Way to Consider a Partnership in Business
Few people are very skeptical regarding partnership in business. They argue that whether the company is experiencing profit or loss, it can ruin your relationship even with slight misunderstanding. But this is just one side of the picture. Partnership in a business can prove to be an asset if handled with care and taken all important prospects in sight before starting the business partnership. There should be clarity in the partnership even if your business partner is your best friend or a close relative.
Following are few important points to consider when you are going for a business partnership. This will help you make your partnership long lasting and profitable.
- In order to keep your relationship strong, never hesitate to hire an experienced lawyer to shape up partnership agreement while forming a company. It is because a poorly written agreement with loopholes can open several conflicts in later stages. Therefore, never reject the services of a good lawyer merely due to higher price as it can save you from much nuisance in your partnership. This agreement should comprise the whole business structure like from free zone company registration to division of profits among partners.
- In normal circumstances, an equal 50-50 share seems a good and fair idea, but it can also make the situation quite tricky when the responsibilities and efforts of both the partners are measured at the time of division of profits. Therefore, it is sensible to share the profits during the agreement according to the roles played by both the partners. In will save you from lot of confusion and mishap and create a healthy environment in business.
- Many people think that they know and trust their partners and it will be enough to run the business smoothly. But with new challenges and hurdles in business, it becomes difficult to continue the business merely on trust. Therefore, a safer option is to agree on a basic plan before starting a business. In this case, everyone will be aware of his/her duties according to the situation which is necessary in keeping the things on track.
- An intelligent option in business partnership is to choose a partner with expertise in a separate field as of yours. This is helpful in the success of the company as two different fields will be run by experts in the business partnership. You can achieve maximum benefit of partnership in this scenario.
- The partnership can also be extremely beneficial if the partners are present in different locations. It will help growth of a company in two separate locations. Such type of advantage can grow the business many folds.
- Trust is perhaps the most important factor in deciding the fate of business partnership. If you don’t trust your partner to share your personal bank account with him/her, then such type of partnership should be deeply considered before its execution.
Make sure to implement these points with your business partnership. It will ensure the smooth and pleasant running of any business with two or more partners.
This is a guest post courtesy of Brenda Cagara. I have been writing for websites, articles and blogs for five years now. I have had a fair share of writing on variety of niches but my main focus is business, sales and finance. Currently, I am working with business consultancy in Dubai (Riz & Mona) which offers company registration and business setup services across all states of United Arab Emirates. Our other services are products registration, visa processing, bank account opening, trade license, trade mark, local sponsors and many more. Connect with her on Twitter and Google Plus.