New Business: To Partner or not to Partner with Others

business partnerships secrets

When you have limited funds, and skillsone of the prospects you might face in starting a new business in Nigeria, might be to go into partnership with some person or to brave the business terrain alone. Many factors might influence your decision to consider partnering with some person for your business; this might range from insufficient capital funds, limited specialized skills, physical disabilities, and relevant business connections, to assets and resources. While business partnerships could be a very wonderful impetus to business growth and expansion, it might not work for everybody and might not be so good for every business and situations.

That is the keyword – situations. Particular situations determine the choice for, and success of business partnerships, and these same situations might equally bring down business partnerships. In actual fact, more established businesses and organizations like banks and political parties find it easier to merge or go into partnerships than new business start-ups in any place and time. But to cut to the chase, what are the factors that determine the success or failure of any new start-up partnerships?

من. Compatible attitudes and business zeal: This is more important than anything else in any partnership business. You initiate a business idea and concepts, and thereby suggest partnership with friends – do they see them as having the same business values like you, and are you professionally compatible for a business relationship? Do not forget that you might be compatible as social and childhood friends, but never as business or professional partners. در حقیقت, many businesses have been torn down because partner-friends cannot manage one another, or lack equal zeal and professional attitudes.

دوم. Draw the lines with an agreement: Many a time, we often go into business partnership with people we already know in some way, and feel that there is no need for any formal agreements or contract for the new business. You are dead wrong. If you do not want to strain an existing social relationship with some partnership agreements, you will find the social relationship straining your partnership business much more than you can stomach. Draw the lines with a formal agreement; demarcated lines of roles and functions help people to operate within bounds, and without out-stepping authorities.

III. Determine individual contributions and inputs: The extent of individual contributions and inputs might make or mar any partnerships, most especially if the most contributor feels inadequately compensated for his contributions and inputs. This covers the amount of physical assets contributed, and the extent of specialized skills inputted into the business. A partner might donate an office space, and another contributes office equipment, and the third partner hands in his car to run operations – but one of them would still feel cheated and overworked if he alone is the think-tank, strikes deals, makes contacts, and generally run things, while the other two only lag behind in every other thing.

IV. Determine profit sharing and other financial issues: Without over-flogging this, you must determine your profit-sharing ratio based on certain factors like full-time partner, half-time partner, assets and skills or any other thing. But this must be determined. You must also want to settle what official designations partners would go by based on contributions and inputs – Manager, Director, Business Analyst, and Business Development Manager, Finance Director etc, these designations boost productivity and levels of business responsibilities.

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