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5 Things You Should do Before Entering into Business Partnership


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Partnership is a relationship between 2 or more people who had made decision to come together under 1 business. Individuals have partnerships in business due to various reasons such as lack of resources or lack of knowledge on the said business among other reasons. In this post we will get to know some things we must do before going into business partnership, these are; 
Know the background of your proposed partner in business. 

Before taking a decision of making him a business partner, run a background check and investigation on him/her, to be sure of who you are going into business with. Make sure you know a reasonable amount of information about them. Not knowing deeply all about your business partner can be dangerous, as we never know what individuals are capable of doing. With the background check you should be able to know his good and bad behaviours and make a decision if truly you can adapt and work with him. Partners in business are mostly best friends or family relations. These are to know more about the other. 

 It is advisable to do partnership with people who you really know.

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Your proposed partners should be able to share the same vision as you, because when there are conflicting values there would be problem. So there must be similarities in your vision statements and values. Some various partners in business later find out that they and their partners are not compatible as they begin to have differences in the vision of the company, in leadership styles,  in financial goals to mention a few. To avoid this, knowing the values and vision of your partner is very important in a partnership business.  

Partnership

Before going into partnership the roles of each individual should be defined. There cannot be 2 captains. There should be drafted roles of each partner for the success of the business. The position should be very clear to each partner. The roles of each partner in the business should be seriously discussed and debated upon to avoid conflicts. 

For every serious and crucial relationship there should be a legal agreement, this legal agreement binds them and speak for the oppressed and speak against the oppressor. This is advisable in case the friendship go sour. The agreement is to make a legal witness that makes each partner sign to the terms and conditions of the proposed partnership. 

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Before going into the business partnership initiate conversations with your proposed partner  that will discuss future likely occurrences in disputes, in sharing of profit, in the business ownership, how decisions are going to be carried out to mention a few. Communication is very important in a partnership business, so to boost your communication between yourselves and your partner make sure you all are clear on every issue that regards your partnership and the firm.

Cheers!

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