Partnerships

Be fair, attentive, and customers
will return.

A business partnership is
when two or more owners
share in the profits and
losses.

This post refers to people,
two or more, owning a
business. They share in
the profits and losses of
that business. I'm referring
to general partnerships.

General partnerships
allow each partner to give
his/her opinion, advice,
and have a hand in its
operation.

General partnerships are
easier to manage. This
form of partnership means
the business is not a
corporation.

It is important for
everyone to agree on
the business' direction,
or its plight.

If, for example, one of
the partners is in the
planning stages of
building a second store,
but another prefers a
bigger pay-check,
what happens? The
confusion destroys working
relationships, and your
business.

Each partner is assigned an
area. Partner A over-sees
hiring, Partner B takes care
of the books, etc.

A plan to open other stores
requires careful thought.
Why open other stores?
When? Five years?

An agreement documents
everything. Is the partnership
fifty-fifty, eighty-twenty, or
fifty-forty, and ten to an
outside person, group?

I advise against any oral
agreements. Time, issues,
will erase memory, and/or
provide selective memory.

Keep a strong business
by putting everything in
writing. Have the partners
sign and date it.

The agreement covers
compensation of the
partners, what happens
when there's a loss, business
type, what each partner
invested, role of each partner,
dispute plan, course of action
due to death or illness, what
happens if the partnership has
to be dissolved, and how long
will the business be in
operation.

Tailor-cut the agreement to
your specific business.
Add anything to the agreement
that's important to you, your
business.

It is important to keep the
line of communication open.
Find time to check in with
the partners. Discuss your
concerns. Inquire about
problems.

Meetings should be
scheduled regularly.
This is the time to bring-up
how to improve sales. Or,
get suggestions from the
sales team. Discuss anything,
everything, pertaining to the
betterment of your business.

What can be done to
improve productivity?
Employees working as
a team? If not, find out
why. Do they have the
proper incentives?

Can you get better
deals on supplies?

Are the partners working
well together? Is the
advertising bringing in
more sales? If not, how
can the advertising be
improved?

In conclusion, general
partnerships tend to be
less complicated. Each
partner shares his/her
opinions, knowledge.

Keep the line of
communication open.
Schedule frequent
meetings.

Every action concerning
the business should be
in writing. It doesn't matter
how small or big the
decision.