How to Partnership in Business
Business and Partnerships
Today I have the Inclination to Deliberate and analyze this relationship, one I hold close to my heart and experienced during the past 10years.
The reason for this topic is not to penetrate or demonize the other party [though some reflections and actions may deem this route] instead I look to enlighten any would-be business interested partners, on the grounds of personal to business progression, should you be in that particular scenario as I was.
This is to shed light on do’s and don’ts, that may in the short or long term save you headache, fractious disagreements, stonewalling, and nightmare situations, Unwanted parallel, yet Both with Similar wants, needs and Direction of Business goals.
Compliance is not a prerequisite to cooperation, nor is decision-making without thorough consideration of both involved parties must be acceptable at this stage.
The age-old grievance and disproportional balance of sharing, maintaining, agreeable objectives and income will be discussed as we proceed in this post.
Money The Root of All Evil?
This cliché’ rubs me the wrong way but has proven me wrong, being that I am, what I believe to be a rational, balanced and fair sharing character, personally and business-wise.
Making Money
Is the Reason for Issues, But more real is People’s intentions, Greed, or single-mindedness coupled with the capacity to screw the other person given the opportunity.
Low Income or Struggling
During this time in the relationship, everyone is Fired-up for planning, eliciting ideas, mobilizing resources that are available. Focus is on achieving the target, to position yourselves for financial freedom through hard work, elected sacrifices, late nights, burning the candle at both ends, in genuine pursuit of a Business to be proud of and a better lifestyle outcome.
Holistic Considerations
Vision, Market Opportunity, Business Plan, Market Strategy, Execute, QA, Manage, Staff, Customer Service, scalability, Feedback.
Business Principles
Businesses should replicate a similar strategy, some more intricate, or complicated in structure, while others simpler in execution and management. However, In essence they all adopt the simple principles or blueprint, To align with markets needs and provide, Supply and Demands in the Business world, Key Points are, uniqueness, and market Niche’s
Sole Business and Partnerships
Ideally, everyone seeks to develop a sole trading -business.
Failing that, partners are the obvious contingency option, particularly if you are currently in a relationship, The saying goes ”two minds are better that one” and yes in most cases the benefits are worth the cooperation, With Both, involved synchronized in vision, ambition, and passion, these jointly can epitomize a good business Partnership and working model
If Your collective resources, are managed and guided effectively there is no stopping the vision, the common plan, and interests, Your pursuit in business is very much likely to succeeded and have long-term mileage, also possibly traction earlier than expected, given that you apply ”smart working” practices.
Financing
The Majority of start-ups have little choice, due to financial requirement and will face one of these two options:
- Require Bank Support for financing ideas and proceeding to businesses [majority cases]
- Already saved a level of start-up ‘Funding’ that allows them to be self-sufficient and embark on their business plan and dream. [the best option]
Option One
To attract support from Banks and finance from lenders.
The Gauntlet of preliminaries, forms, business plan, target strategies on ROI, is crucial
Jump through ‘hoops’ to Coin a Phrase
This does not mean you are successful in attaining what you need, sometimes penalties are placed should you fail to meet certain markers, all in all, you pay interest against your borrowing to your provider- (Bank)
Campaigns are possible to give you 1 or 2 years of freedom from payments until you have established your business, but a price is always in existence now or later! Some banks are better than others in offering terms and conditions, the High street Banks are keen in offering assistance, However, caution is prudent so confirm and qualify what fees you are likely to be signing into.
Option Two
Fully self-sufficient newbies in Business, [as I was] This truly is the ideal situation, if you have the cash-flow to equip your new business, preferably over a 1 year minim period, then you really are in the Driving Seat with no weight on your shoulders, worrying about payments in the initial ”setting up shop” period
Keeping a strict budget is still advisable, due to varying outgoings that can easily ‘run-out of control’ faster than you can wipe your brow, yikes!
Inexperienced
Many inexperienced starter-ups in the business see their ideas as winners, though a little cautious, If you can manage your finances and time well,
Having a good head for auditing cash-flow will put you in good stead, you a winner already, this is super imperative, daily bookkeeping ”in’s and outs” balancing the sheet daily is key to tracking your progress and staying safe.
Accountant- Book Keeper
If you can honestly manage this yourself, then well done, it’s more about consistency than anything else.
If you as rubbish at this sort of thing, you better seek an accountant, one locally that is not going to crucify you monthly.
Perhaps a part-timer, many are looking for ‘cash in hand’ private work, outside of their working hours, bookkeepers are easy to find online with accreditation. Be sure to ask for this prior to engaging their services
Research Your Service or Product Market
Removing Guessing, and Grey areas from your Plans
This will only leave you at a loss, research and get usable info you can then apply to your strategy or adapt.
Once You Have a Service or Product in Mind Go!
I suggest you do lots of research on your competitors, local and countrywide initially.
Get a Good solid feel and understanding of your position and your business to the market needs and demands
Note: Ours were electronics and the market was buoyant for specialized products, we had set our minds on providing.
What to Expect in a Relationship – [Business]
The saying that behind every businessman, is a good Businesswoman, this has a level of truth, WHY?
Women
Simply women, in general, seem more adept at expressing and engaging their ideas, than their male counterpart
But this is by no means a stereotyping of businesses and men or women for that matter.
Men
What we as men possess in most cases is the capacity to make decisions quickly, perhaps ‘not always given full’ information to work with, but on a need to Come to resolve and decide, either way, Then move on.
This very thing is what can turn to a disadvantage and [your Achilles heel ] in a woman’s favour later -on in the business. As you will make Decision mistakes and they will undoubtedly remember every case to recap at you.
Venus and Mars
Remember and you will not go far wrong, the V&M syndrome really exists.
And in business, it rears its ugly head frequently, Due to Pressure, tiredness, and differences of opinions or approaching Difficulties. Certainly largely decision-making is the Catalyst for many ”a bust-ups’ and court Litigation cases.
Protecting Vested Interest
As a shared business concern, in the early stages, it is easy to postpone the very important aspects of responsibility and finances, perhaps because you are too heavily involved in the running of things, maybe even because you have a natural honest confidence and trust in the person you love and embark on what seems a lifetime play in business.
This is where you will suffer, be compromised, be taken advantage or cheated in one way or another, sadly!
This is the building block of the, Me, Me, attitude, and a selfish human trait that so often ruins what is good.
Suggestion and Action
Take the time out, sit and discuss the business at a personal level, income, payments, legalizing the process for the benefit of each person,
If this is not agreeable then agree to disagree and consult a solicitor soonest, get official and safe now!
Failure to Officialise Partnership
You don’t want to be there, don’t entertain this situation.
Love and business do not equate to happiness to a good outcome for most.
In my experiences and of my close friends in business with partners, this has been the hidden crack in everyone which failed both personal and business relationships.
- why not take this step, would you?
Believing a love relationship will conquer all and keep things on track is a fool’s dream, money poisons, power corrupts. People change and become unreliable, single-minded, driven, your ‘inside’ competitor, and the most dangerous one.
It could take years to exhibit these clearly but it will be developing and eating away at that dream you both started years back.
Rare Situations
Of course, there are couples in business that seem to work, but I dare say there are hidden sacrifices we are unaware of these are in my humble opinion anomalies,
It takes a special person to see a special person that enhances the lives of the other, I have yet to see one of those, but remain open to possibilities and stand corrected.
Remove Verbal agreements
Applying written agreements are your best step in safeguarding your investment, interests
- How important is the Verbal agreement to you?
Official Taxable Business Bank accounts
In all cases never consider using your personal bank account to start up a business,
I had problems to separate from the insertion of a personal account, at the time not doing enough research on options, mainly because we were focused on getting the whole thing to a flying start quickly.
A big No! No!
Today it’s different from 10 years earlier, you have more choices and options, so make it count.
- Do you have a business account, or still considering?
Register Company [Company house the UK]
Declaring earlier than later saves you a heap of backtracking and
providing the information you may not ever have saved. You may be of the idea ‘ the business is only starting” why do this registering.
Get it done and another box ticked off the headache calendar.
- Do you disagree with early registration? Why?
Register Tax
In applying for a company status you may automatically receive messages from HMRC to provide necessary company info and fill in forms that have benefits to your New business too!
Partnerships Benefits
There are benefits in a good working and agreeable partnership, [personal him and her] you may be fortunate to have the perfect situation, but I would still see a high level of risk that can lead to a complete breakdown of something beautiful and long term
Do you want to risk it? I did with catastrophic results and certainly would not put my toes in the water again, sharks are nasty!
- Have you experienced similar, what did you learn from it?
- Do you want to move your life in a positive direction and freedom of choice? Review my blog on this very thing, tell me you’re not seriously energized to make your own damn decision. =========>>>>Read On>>>>>
My best wishes to your endeavours may they be prosperous and without unwanted difficulties
Christopher