Partnership in business: What you need to know

I was reading through random post which was shared to project hope community and I came across the one that talked about Partnership in business. Immediately I read through the post, I became motivated to talk about Partnership in business too.

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When it comes to business, partnership is a good deal as it opens the business to more knowledge and backings. The essence of Partnership majorly is to be able to have more team who can contribute mainly to the success of the business. Every good project out there always need two or more partners to make it work out. I am not too good with the mark zuckerberg story but I read how he partnered with his friends to get the facebook story into a reality. He did not chase the facebook dream alone, he went into partnership with others and this brought the business into the global acceptance it got today.

Partnership is a formal arrangement by two or more parties to manage and operate a business and share its profits.

There are several types of partnership arrangements. In partnership business, all partners share liabilities and profits equally, while in others, partners have limited liability. There is the so-called "silent partner," in which one party is not involved in the day-to-day operations of the business.

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For partnership to fulfill it aim, all parties must come into agreement and talked about how the business is to be run. This is where it always got interesting. Another thing to look at for is to choose among the partners who will head the team. 90% of the business I have seen, it is usually the person that came up with the idea that always act as the CEO. But sometimes, the team agrees on somebody with the highest shares in the business.

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In 2010, while I was still looking to gain experience when it comes to business, I came across a man called Andrew. He lamented to me how he and his friends team up to have the best eatery in town. I was blown away by what he told me.

He said that he came up with the idea and all the plans. He tried doing it alone but he noticed that his capital won't be able to fund 10% of the business so he made an open deal to his friends and watch how they reacted. He called them into a meeting, tell them his plans and he was surprised that over 15 persons showed interest. With all their fund in place, the business was 90% ready to go live.

Now the limiting factor is who will be the CEO, thanks to his amazing team, despite all the money they invested, they remove greed from the scene and allow him became the CEO. They happily shared all the responsibilities within themselves and they worked towards it. Mr Andrew told me managing the team wasn't easy at all. He sacrificed his time, family attention and rest into ensuring that they achieve apex. The rest of the team believes heavily in him and after 10 years of continous pushing, the business hit global recognition.

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Now that the business has hit a global recognition, they are now enjoying the fruit of their labour. Mind you, this was made possible because they all have endurance, they were all thinking long goal instead of short term and finally, it paid off.

The story above looks interesting right? Yes, I will say. But have it on your mind that any business that requires two or mor persons, issues might bond to happen. Below are some of the factors that might affect Partnership, they are as follows;

• Division of labour: When talking about division of labour, I am referring to how the work will be shared between the team. We are humans and sometimes when it comes to sharing of work, people tend to play smart and lazy but when it comes to sharing reward, you will see them popping out. This is why applying work sharing formula will be a big issue when it comes to partnership.

• Greed and enviness: This is a major issue when it comes to life and business in particular. Greed and enviness is a big issue when it comes to partnership. When the business is booming, you will see greed and enviness setting it. This is a big issue to address when it comes to business and partnership.

• Ownership: When it comes to partnership, it is believed that all the team members involved are the owners but when the business keeps getting massive attention, war on who will keep making decisions will surely be a big fight to wrestle.

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I will be talking more about challenges that is bound to happen when it comes to partnership as time goes on. Stay glue to my feed as I share more knowledge.

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