About Partnerships

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The following are important facts that you need to take into consideration before going into a partnership.

Do you have a partnership agreement or governing document?     This is a very important document.  A partnership agreement defines:

  • the business relationships you have with your partner/s
  • enables you to ensure that all needs are met
  • spells out how profits will be divided
  • the rights and responsibilities of the partners
  • the procedures to take when a partner leaves the business, and many other important rules and guidelines.

Have you agreed on salaries?    It is important for the business to establish salaries beforehand, in case a partner may be on a self-enrichment crusade and regards the business as a cash withdrawal machine.  You cannot pay yourself more than the business can afford.

Do you have the law on your side?    This sometimes means digging deep into you own pockets, but the proper legal route need to be followed.

Is your business model workable?    A good workable model focus on both the large number of small clients, as well as the huge contracts and big corporates.

Is customer/client service given top priority by all partners?    Many business fail not because of the lack of sales capacity but because too many partners concentrate on the money aspect only and neglect to see to  their customers, who are looking for delivery and fulfilment.  It’s critical to have specific departmental responsibilities, and to think like the customer you are trying to keep.  If you focus on customer satisfaction first, money will take care of itself.

What are you as partners prepared to give your customers/clients?

A good, solid partnership can do wonders for the empowerment of a business, if done with shared determination and a belief in what you do.

 

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