PARTNERSHIP IN BUSINESS
We all know the popular saying that two good heads are better than one. It therefore logically means that three good heads will be better than two, and so on, as there is strength in number. Business partnership is an arrangement whereby two or more persons engage in business as owners of the same business, with the risks, as well as the profits, shared equally or according to an agreed-upon formula between/among the parties involved.
Partnership, if properly followed, is an effective strategy in business. Teaming up with another like-minded individual or a group of individuals to operate a business venture is beneficial, in the sense that it will lessen the burden of work and other demands of the business on the partnering individuals, while also making it possible for them to complement the strengths and weaknesses of one another. When different people jointly run a business, they share knowledge, skills and resources, and specialization can come to play as well. The arrangement gives the parties involved a sense of security for the business, because all needs are better met, and the venture stands to benefit from the multiple owners nurturing it.
In business partnership, there is need for a legal binding, as well as clearly-defined stipulations and regulations, including the rights and responsibilities of each partner, understood vividly by all the parties involved. Fundamentally, the owners of the business in partnership have to invest the money and other resources needed for the business. Also, depending on the binding agreement, some of the partners may work actively in the day-to-day running of the business while others may not.
A major advantage of partnership business is its ease of operation, which is one of the reasons why it is a very common form of business. Also, it requires very little startup cost, as the responsibility for providing capital is shared between/among the partners. Furthermore, a partnership business has a greater borrowing capacity in terms of acquisition of loans and other credit facilities that may be needed from time to time to service the business, since the higher number of proprietors means a stronger guarantee and more options of collateral.
WHY NOT CONSIDER COMBINING YOUR POTENTIALLY GOOD BUSINESS HEAD AND WHATEVER RESOURCES YOU HAVE WITH THOSE OF ANOTHER PERSON IF YOU CANNOT DO IT ALL ALONE?