Business Partnerships: A Necessary Risk

Business Partnerships: A Necessary Risk

Starting a business is an exciting venture.  Sole proprietorship allows you the freedom to Implement your own ideas, business procedures, and schedules as you wish.  The decisions you make will not impact anyone except you.

Working alone can be difficult when trying to jump-start a new business.  Most people need help in some areas, especially with the financial aspect. Some people may be better suited for a collaborative effort.  People have different strengths and weaknesses which is beneficial to the business. 

There is always a risk in a partnership.  You have heard the saying “nothing is forever”.  Many problems can arise when working with other people. Many people go into business with someone who initially seems to have the same mind-set and goals for the business. At some point during any partnership, egos, differences in opinion or direction may cause a rift in the partnership.  When the partnership dissolves, there are often claims of ownership and property that can cause disputes.  Partnership agreements can eliminate legal disputes that may arise from the split.  If one partner is going to keep the business, legal disputes can be expensive and result in the business being forced to close. Different skill sets, temperaments, and ideas can create diversity. However, the necessity for financial help, implementation of business procedures and creative ideas are worth the risk is you are protected.

Business partnerships are often necessary and have the potential to make the business a success.  However, a partnership agreement is unquestionably critical in making sure both parties are protected in the event the partnership dissolves.

Share:

Share on facebook
Share on twitter
Share on linkedin

More Posts

Lessons Learned

A survey by researchers at Washington University in St. Louis found businesses with a previous lending relationship enjoyed a 57%-point advantage in obtaining a PPP

invoice factoring for startups

Invoice Factoring for Startups

Startups bring us some of our most creative innovations.  Being a startup involves a lot of risk, time constraints, staffing demands, and challenges obtaining funding. 

Young woman working from home

Small Business Finance Basics

Small business finance can be confusing for many startups.  Properly setting up your financial books is vital for the success of any small business. Accurate