At the inception, setting up a business partnership is exciting. This is usually the case when an individual finds a collaborator who shares his vision, enthusiasm, and equally has great ideas.
Soon enough there is a comradeship forged which gives the assurance that the the entrepreneurs have what it takes to build a profitable business.
However, before any of these entrepreneurs invest time, money, expertise, and other resource, it is prudent to be a little circumspect and examine the nature of business partnerships.
Entrepreneurs are in the business of selling products and services to make profit, for themselves and investors. As such, for individuals to build a profitable partnership, there needs to be a contract with terms that effectively captures the expectation of the partners.
Every partnership agreements should detailed enough to spell out certain important terms, such as;
- How the partners will split business profits,
- How much will each partner get paid as salary on a monthly basis,
- Decision-making on important issues of operations, product development, hiring of staff, marketing, and sales,
- Dispute resolution,
- Dissolution of the partnership,
- Admission of other partners,
- Sale of partnership,
- Contributions of partners in terms of duties, obligations, business development, and funding.
In conclusion, there is no better approach to solving challenges than the famous saying “two heads are better than one.”
A partnership offers a structure where entrepreneurs can harness their strengths and abilities to scale their innovation and solve complex challenges. In today’s fast-paced business climate, a “do-it-alone” approach might not the best strategy for growth and profitability.
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