Partnership business has led to the deaths of many emerging businessmen. How and why? You will know later. If you are in one already, you need to be highly careful and there are some basic decisions that you need to take now as a matter of urgency.


Come here later in the evening and you will see the dangers of partnership for business beginners and what you need to urgently do in case you've started one already.

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Good evening. Let's now look at the reasons why you should start and grow your small personal business rather than entering into a partnership in your early days in business. Partnership is good for big and established businesses and not a struggling small business.

Below are the reasons:

1. Leadership tussle: Who should be tagged 'C.E.O'? Who should go for trainings and conferences reserved for only one of the partners? Who should liaise with investors? e.t.c. These are some of the questions both of them will have issues with even despite having a legal document.

2. As peculiar to all small businesses, a small partnership business will struggle and suffer for long before it will get its balance.

3. One partner or two of them(privately and separately) may be stealing from the business fund and thereby cripple the business till death.

4. Profit sharing problem: disagreement may ensue on profit sharing even with a partnership deed. This may lead to legal battle between the partners. Conversely, if there's no legal deed, this disagreement may lead to the end of the business.

5. How to share responsibilities: Who will go for purchasing, who will attend to customers, when will the two them resume daily, e.t.c. These will cause some squabbles.

6. Lack of proper legal paperwork and lawyer: For you to successfully run a partnership, you must have a lawyer that will seat the two of you together and then draw up a partnership deed that will guide the operations of the business. Similarly, the lawyer will act as your legal adviser and witness. The lawyer will charge you handsome fee for his services but that's the ideal of forming a partnership. That's why partnership is good for two separate established business entities that have the required resources.

7. When the business goes bankrupt, the other partner may disappear. I don't want to dig deeper on this. We all can relate in this part of the world.

8. A wicked partner may kill the other when the business booms. Hmmmn, I think you guys can decode this also especially in the absence of proper legal paperwork.


Later, for those already in partnerships, I will tell you what to do to have peace of mind and what to do to ensure your partner doesn't kill you when the business booms.

Thanks for reading.

Beware!

Always remember these problems when setting up a business with someone.