Partnership simply means a form of business an agreement between two or more people or business firms that come together to invest and do business with the aim of making profit at the end of the investment periods and after that the profit is distributed among the investors according to the total amount each individual has contributed to the organisation.
In partnership both profit and loss in the business affects all the parties involved, when the business is going well every body benefit likewise all risks ate also carried by all partners.
Business partnership increase participation of individuals and entrepreneurs in economic activities which is good for the growth and development of the country at large.
A tree can not make a Forrest.
Two heads is better than one.
This are qoutes that are all aim to encourage encourage partnership amongst people despite their differences, they come in Harmony with the common aim to make profit and grow their empires.
In other words A partnership is a type of business structure where two or more individuals or entities collaborate to manage and operate a business. In a partnership, the partners share the profits, losses, and responsibilities of the business. There are several types of partnerships, including general partnerships, limited partnerships, and limited liability partnerships, each with different levels of liability and management roles for the partners. Partnerships are a common form of business organization for small to medium-sized enterprises.
Types of partnership:
Limited partnership
General partnership
Joint partnership or venture
Limited partnership:
This type of partnership allows outside participation of investors to invest their money in a certain Business. Involvement is limited liability and the maintenance of the business is mostly under the control of the investors with the higher capital in the investment. This type of partnership is a bit complicated, and decisions making are mostly flexible because of the nature of agreement were by most of the decisions are taken by the major contributed.
General partnership:
In this type of partnership, all the investors share equal liability, labour, time ,risk and benefits of the business. When it comes to distrubiting the devident all participants collect equal share of the profit generated in the course of doing the Business, likewise when there is a loss it is bound on all members , all investors share the risks that is involve in the business.
Joint partnership:
This are the short time collaboration in business, and most atimes discountinue when most partners are not satisfied with the outcome on the return on investment. But if the partnership out come is good it can turn to a general partnership,there after attracting more investors into the business
Advantages of partnership:
The advantages of partnership in business are as follows;
Easy to start and maintain
Devident are shared among partners
Resources are provided by the members who are partners in the business
Both the benefit and the labour are shared among partners
Investors are given the opportunity to contribute and brings opinions that will make the business grow
Disadvantages of partnership:
The disadvantages of partnership in business are as follows;
The issue of different opinions when there are more investors
Profit are shared according to the shareholders investment
Partners are responsible for there action on like cooperation were investors can be shield
Disagreement can erupt at any time if there is no trust amongst members.
What is partnership in business:
Partnership in business is when two or more individuals firms agree to bring their resources , experience together to invest in a particular Business opportunities for example real estate, agriculture, automobile etc. This partnership requires a joint agreement on how profit will be shared according to the amount of capital one had contributed to the business.
Usaully the members involve brings equally share of capital which is then invest in the a specific business, a specific account is open for the business and the signatures of the partners most be clear before money is withraw in the account. They can decide to Choose
thier chairman and secretary who can serve as their directors for the main purpose of co-ordinating and organizing the meetings to be help achieve a rancour free organization.
What is public private partnership:
When the government of a country and the private sector collaborate to provide ammenities.
For the benefit of the common people it is called a public private partnership. The private sector provides setting percentage of the capital while the government provide the enabling environment and also invest along side the private sector to make live easy for the citizens.
When the government is interested in doing business with the private sector the economy is favoured and more investors will begin to come into the country because the will make profit ,when engage in partnership with the government they private sector also share in the risks and benefit of the outcome of the partnership.
How to find a business partner?
Finding a business partner involves several steps:
Define Your Needs: Clearly outline what skills, expertise, and resources you need in a partner to complement your strengths.
Network: Attend industry events, join professional organizations, and leverage your existing contacts to meet potential partners.
Online Platforms: Explore websites and platforms like LinkedIn, CoFoundersLab, or AngelList to connect with potential partners.
Evaluate Compatibility: Assess potential partners' values, goals, work ethic, and commitment to the business.
Legal Agreements: Consult with a lawyer to draft a partnership agreement that outlines roles, responsibilities, ownership, and dispute resolution.
Collaborate: Start with smaller projects to gauge how well you work together before committing to a long-term partnership.
Due Diligence: Research the potential partner's background, track record, and references.
Seek Advice: Consult with mentors, advisors, or industry experts for guidance and insights.
Remember that finding the right partner can take time, so be patient and thorough in your search.
Post a Comment