Going into a partnership is not just about forming a business with others or friends. Those who form business partnership with such view are bound to witness business failure, scandals and litigation. Poorly structured partnerships can lead to heart ache. So how can you go into a partnership the right way? When two or more entrepreneurs form a partnership, they pull their resources such as funds, expertise and skills thereby increase their chances of coping with their competition. There are numerous advantage of business partnership, one of its major advantage is that it can help the entrepreneurs overcome funding and skills challenges. Partnership helps young entrepreneurs on how to source for start-up capital, which is the major challenge when it comes to starting a business.
A report by experts confirmed that many young entrepreneurs fail in their attempt to turn their ideas into legitimate and thriving businesses because of a lack of capital. Those who succeed in getting a start-up loan, high interest rates often choke their business, causing it to fail. As a young entrepreneur, starting business you should do as much as possible to avoid bank loans, stressing that partnerships are better alternatives. When it is important that extra care is taken to ensure there is not an informal arrangement. PAY ATTENTION: 4 Ways that Poor Cash Flow Can Damage your Business
Choose a partner wisely
It is not enough that a prospective partner is your friends or family member. You have to be sure that you can work together and that you also share the same values and work ethics among other things. In choosing partners you should avoid those who have the same strengths or weaknesses that you have. The idea is to complement each other. Your ideal partner should be strong in areas where you are weak and vice versa. You also have to ensure that you share responsibility, splitting costs and sharing and sharing risks. You need to have a clear idea what each partner brings to the table, contacts, funds, experience, creativity, ideas or innovation. If you are starting a new business in which you have a limited experience, there is nothing wrong in getting a partner who is more experienced than you are. One of you can be the brain while the other can be the muscles. What matter is both of you have a formal agreement. Do not wait until the business breaks even or when it grows into a big company.
Before you go into business partnership, you need to consider where misunderstandings and disagreements may arise in the future. In order to minimise the possibility of discord and to provide for structure in the event it occurs you should consider the following disagreements later.
The type of business you going to have
What your business structure will be? Are you going to have a general or a limited partnership? This includes not only the original idea but the potential side marketing that you could do. If the company going to be a limited, who will be the general partner(s) and what will the business form be for that person or entity? Everyone involved should have a solid understanding of the extent that they will be liable for business obligations prior to entering into any small business partnership agreement. In this point you are not only considering funds but also experience. If one of the partner main contribution is not money but their expertise, this should be understood from the beginning and spelled out.
How are you both going to resolve dispute
There is no doubt that there is no going to be disagreement between the both of you but in the unfortunate event you and your partner(s) do not agree, how will the matter be decided? Who will hold the final say or is it by vote? Don’t get yourself or your business in the situation where you are unable to move forward because one partner can’t agree. How are you going to decide on the profit and losses on the business when the situation arises? Will it be by shares in the company or some other method? What about rolling profits back into the business to expand it, you should both consider this and how it will be determine.
What will happen if a partner becomes incapacitated or dies
You need to consider how the business will continue in the event one of the partner died or incapable. You will also consider what will happen to partner share of the business. There will always be a change, when this happen. How will you roll with the times? What restriction will be placed on partner authority, this includes not only making decisions on behalf of the business, but also on expenditures. You both need to make decision on how the business assets will be distributed in the event the business no longer has capacity in the market.
Regardless of the headline-grabbing stories that disputes between partners have generated over the years, you need to bear in mind that many partnerships have been successful and are striving today. Taking these tips into consideration and doing further research you could be one of those who built empire with successful business story. Keep in mind that it is better to be the part-owner of a thriving business than for you to be a 100 per cent owner of a dying or non-performing business.
5 Ways to Take Your Career to the Next Level
No matter what your current position is, chances are that you will like to make some changes and advance in your career or explore a completely new one. Setting a solid career plan is an important step in making the changes that you like to see in your life. Laying out each goals and specific ways to make it happen will make it much more likely that you find yourself exactly where you want to be in the next three to five years from now. A good career plan will also show prospective and current employers that you are serious about your future and motivated to take matters into your own hands. Not every career path will lead to professional success and satisfaction and not every job will do. Many people who suddenly quit jobs that pay them six-digit figure for lesser paying jobs will attest to that. They realized that their high profile job offered them no satisfaction and led nowhere at least not where they want to be career wise. Many people fail to define career path and often end up far from the road to professional success. Experts advised that people should take time to plan career paths for themselves before they get a job. For those who are already working, it is not too late either to define a career path and regularly review it.
Doing this of course is not as easy as a stroll down the street, not many people can confidently say what they want to do for the rest of their lives. All it requires is a clear thinking and a proper understanding of what really matter to the individual involved. To come u with a good career plan for yourself, experts recommend follow the steps listed below.
Know what is good for you
First it is important to know the kind of person you are. Many people today cannot boldly answer these questions easily because they have never tried answer them before. Once you do not understand your personality or self, you will be unable to tell what is good for you. As a result of failure for many people to understand their personality, it is common in the society to hear some adult telling a younger person, ‘’You do not know what is good for you.’’ PAY ATTENTION: 4 Common Mistakes Leading to Startup Business Failure. To understand what is good for you, you need to know what motivate you and what makes you happy or gives you a sense of fulfillment. What are the things you likes and dislikes, what are the things you feel strongly about? When you are able to answer these questions honestly, you will find it easier to tell if a job is suitable for you or not. If you are already working, set a list of what you like doing and compare it with the activities that go with your job and see if they are similar and if they are not, it mean you are either in the wrong company or pursuing a wrong career. Take some time to understand the motives that drive your sense of success and happiness. It is important to follow your passion.
Take note of past success
When planning a career path, it is essential for you to review you past achievements. What are the projects you have done with great success? By taking note of your past accomplishments, you will not only get to understand what you are good at but also what it will take to be successful. This can help you plan your career path better. Also reviewing your past accomplishments will help to give you an idea about the kind of atmosphere you need to excel professionally.
Set a career goals for yourself
After getting to understand yourself and what is good for you, it is now important for you to draw up a plan for your career and set goals for yourself. Decide on the kind of job you want to do, what you want to achieve and when. By setting goals and targets you are likely to be more productive and successful than you will be when you ignore goal-setting. While you may be feel naturally good at a job because it suits you, to excel in that job, you need to put in extra effort and this comes with training and preparation. To avoid mistakes, you will need to get all the training requirements to excel in your career path. You can enroll for programmes that will provide you with knowledge you need to succeed along the way.
Target the right organisations
The kind of organization you work for can largely determine whether you will become a successful professional or not. It is also important to have all the latest information about the industry in which you operate. This will help you to seize the opportunities that will enable you to grow in you chosen career and stay relevant. It will also make it possible to find new jobs easily and to negotiate better conditions which will in turn boost your career. Acquiring new skills and accomplishment will only boost your chances of making it to the top in you career path. PAY ATTENTION: 6 Mentoring Strategies for Leaders That Want To Make an Impact
Review your career path regularly
The world has changed and we now live in a fast-changing world and just as the conditions are requirements for achieving great success in a career continually to change, so do our likes and dislikes or interests. Therefore, it is important to review your career plan regularly to note the changes that may have occurred in your profession or your goals. If you are already working or just start out, it is also important that you get yourself a clear career plan to will align with the change.