To partner is to come in collaboration with another party, pulling resources (such as ideas, finances assets and so on) together from each and every party involved in great expectation to achieve a common goal.
It is a great virtue to see the prospect in partnership, besides it is popular said that two good heads are better than one and a great success cannot be attained in isolation.
This afore explained can point to the fact why partnership should be paid attention to in different dimension when certain goals are expected to be met.
In this regards, Partnership in the business world is a no exception in how greatly its impact could go if properly delved into.
In a simple and mild saying, It is rational to partner in business.
However, some pre requisite measures had to be put in place before considering partnership in business.
These factors are opening eyes decisive pointers in knowing whether to key into or pulling back out of a business partnership deal as the case may be.
Every successful plan has to be strategic no matter how easier or rigid the end product might tend to result to.
As it is rightly believed that great businesses are founded on great partnership, on the other hand, great business can also be destroyed by bad partnership.
The factors to be considered are the following;
1. Type Of Partnership
Before delving into business partnership, an understanding of the type of partnership one wants to be has to be fully realized.
It should be well understood that the common type of business partnership is that of the General and limited partnership.
General business partnership has to go in line with equality in decision making by the two or more parties involved in it while Limited partnership can come as a platform where a party can come into a deal as an investor.
For example, you cannot be in general partnership with another if you know your partner(s) would not correlate with most decisions you make in your business activities.
2. Nature Of The Business
Entrepreneurship is all about bringing forth a solution to a problem that has engulfed a certain environment.
A problem solution provider nature of business is all you should look out for before partnering in business whether as a shareholder or a prospective joint owner.
The zeal to bring solution to a humanity problem is a zeal on its own that could drive every partnership member to contribute the best of strength in business to a positive end
3. Future Of The Business
This factor requires how long and relevant a business can survive over time and even moments to come.
Future prospects a business can yield must be put into perspective before committing a partnership at all.
We can all agree that business that involves food, hospitality, health care services among others would surely survive for a very long time because they are services are necessities that people would always pay for.
Enough conviction about the survival of a business in the future puts all stakeholders in a great level of confidence to push forward to go into partnership.
4. Level Of The Risk
Considering the level of risk as a factor to consider before partnering in business cuts across the environmental factor, government policies, finances and every entity of that surrounds the business as a whole.
Most time, it can be very risky to partner with a small / medium scale business with quite large amount of funds rather than to partner with a considerable fund while watch to have a test of time.
Economically, some government policies might be threatening to the growth of some businesses which should alert the carefulness of how resources should be channeled.
However, it should be noted that business activities is all about risk where losses are prone to happen; but it is advised that calculated risk is what should be done always.
5. Consistency In Productivity
In this context, Consistency requires a sustainability of every little success attained in profitability; continuity in growth towards business expansion.
Ability to queue into this type of growth in partnership would surely be a big plus to the partner(s) thereby strategically taking advantage of the managerial leverage of a business that has been able to survive over time. It really pays to reckons with consistencies.
6. Parties Involved
There are fortunes and the otherwise in association.
Most of the time, we pay less attention to this particular factor especially when it comes to the business world.
There is a saying that when you want to win, then associate with winners so that you can win together. It is very wise to partner with positive like minds fellow(s).
It is not just enough to look for those with the right skillset, experience but a high cognizance should be paid to those with the positive drive to succeed.
7. Interest Of Parties Involved
As a partner, either one is an active partner (a working stakeholder) or an inactive partner (only financier).
The interest of all parties must be understandably deliberated and cordially agreed on a round table.
This is to avoid future dispute when productivity booms or goes otherwise.
This is the reason why all partners are coming together.
Issues like profit sharing, loss bearing are some of key issues to be deliberated on.
8. Legality Of The Partnership Contract
Documentations of all terms and agreed conditions that surrounds the operationalization of the business activities as it concerns the partners must be properly spelled out in a written form, and of course backed up by law.
It is very important that every partner or intending partner(s) in business must understand and consider this as factor before going into partnership as this as this can only be an evidence that a business talk had actually taken place and specific agreement had been made.
A business partner who does not want the legalizing of contract terms should be avoided.
Partnership in business can be very profitable and enterprising if all factors that surrounds its intentions are purposeful and non-fraudulent. And to avoid going into fake deals is why some factors above are explored for optimum attention for the business partners and the prospective ones.
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