Challenges experienced in a partnership business and how to solve them.

  

Date Posted: 11/6/2012 7:19:00 AM

Posted By: Mrs kihara  Membership Level: Silver  Total Points: 543

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It is said that necessity is the mother of all inventions.This statement holds water in today's business world.Due to economic hardships,more people are preferring business partnerships.
A partnership is a business venture comprising two or more people. The main aim of the business venture is to make profits. As such the partners are expected to be pro-active and part of the business.
Every partner should be part and parcel of the business.The partners are expected to minimize unnecessary expenses to increase the chances of making a profit.The partners are also expected to be good ambassadors of the business.

They should maintain and improve the image and reputation of the business. However,this is not always the case.When a business involves two or more partners,problems may be experienced. Someone once said that if people always agree on business issues,one of them is not necessary.
Even the best of business partnerships go through hardships.
Some partners in business are difficult to deal with.
Some are dormant partners and don't want to get involved in the day to day running of the business.Others want to take short cuts in business deals.
Some partners put a blemish on the image and reputation of the very business they are partners.
Others misuse funds meant for the business.Others try to be smart and cunning.Some don't fulfill their part of the bargain.
Some are just ignorant or careless.Such partners are not willing to be involved in the running of the business yet they expect to have an equal share of the cake during profit-sharing.They want to reap what they didn't sow.It is a crazy world.
In business,you either get profits or you incur losses.Failing to plan is planning to fail.Therefore,it is important that business partners sit down and plan about the business.In a business partnership,you will not always agree. To minimize nasty financial surprises and

partner misunderstandings,it is important to establish some basic policies governing day to day business operations.It is also important to invite mentors and financial advisors to talk to the partners.There should be an agreement and job description.Everyone should be aware of his/her rights,responsibilities and duties.If the partners play their defined roles,the partnership will be a success.

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