Partnership, the merit and demerit

[Jubilee58]

According to investopedia, Partnership is a formal arrangement between two or more parties to manage and operate a business and share it's profits.And however, it has some advantages and disadvantages.

Merit: Most individuals do not have the time or resources to run a successful business alone therefore give room for partners to put resources together and abilities.
Partnership also make the day to day operation of a business more manageable than when one person were involved.

Demerit: During sharing of profit, partners may assume responsibility for any losses or dept from the other partner.
There is a higher chance of conflict and mismanagement.
However, if one of the partners want to quit, there may be difficulty reaching agreement about selling the business.

[leonair]

According to investopedia, Partnership is a formal arrangement between two or more parties to manage and operate a business and share it's profits.And however, it has some advantages and disadvantages.

Merit: Most individuals do not have the time or resources to run a successful business alone therefore give room for partners to put resources together and abilities.
Partnership also make the day to day operation of a business more manageable than when one person were involved.

Demerit: During sharing of profit, partners may assume responsibility for any losses or dept from the other partner.
There is a higher chance of conflict and mismanagement.
However, if one of the partners want to quit, there may be difficulty reaching agreement about selling the business.

If you find a good partner in a share business, then it will definitely help your business grow a lot. But there are advantages and disadvantages here, which you have mentioned are certainly true and effective. If you have a partner, you will get financial support, you can make a good plan together and you can share the efforts. But the disadvantage is that you will get less profit because the profit has to be shared. Again, if your partner is not honest, it will affect your business, which can break the structure of your business. Again, if your partner suddenly sells his shares, then it will be very difficult to adapt everything with the new partner. So, doing business with a partner has its advantages as well as disadvantages. You have to think everything carefully before starting a business with a partner.

[Hewlet]

Demerit: During sharing of profit, partners may assume responsibility for any losses or dept from the other partner.
There is a higher chance of conflict and mismanagement.
However, if one of the partners want to quit, there may be difficulty reaching agreement about selling the business.

Before partnership can be effected, there should be a detailed agreement between the parties involved on how profit is to be shared, what is going to be the responsibility of every person involved in that partnership as well as details regarding how the business is to be run with a legal representative being brought into the picture depending on the strength of the business. if you set proper structure in place, there is going to be more of the good side of partnership rather than the bad side of it.

there are businesses that are currently doing well that are built under partnership. the fear is always that people can change which is quite understandable but at the same time, if you start up business with a partner that is up and running, that can be the beginning of big venture for you. partnership helps in the bringing together of not just financial resources but also ideas and individual strength and experiences together which helps and makes it easy to run the business far more than a single person can handle.

[Findingnemo]

According to investopedia, Partnership is a formal arrangement between two or more parties to manage and operate a business and share it's profits.And however, it has some advantages and disadvantages.

When two like minded people with separate skills joining as a team to run a business will have much better chance of winning because more mind brings in more knowledge to the table and managing it in the tough times can be easier and it can also work for small scale business too as long as you can be sure the partner is having the same vision as you, if not then thing can take a you turn.

[7juju]

In this modern day, before going into partnership one need to be very clear with definition of terms so that everyone will know their responsibilities, obligations and reward percentage at the end of the day. If people were having problems with partnership deals in the past, such challenges shouldn't be that much today as the world has advanced more than it was many years ago. Don't enter into any  blind partnerships were you don't know what is required of you and what you stand to gain at the end of the day. Don't make the agreements on you partner alone without an attorney to both parties.

[Kagaru]

I faced this situation. I myself started a small business with two friends, it was going very well in the beginning because the work was being shared and the expenses were also reduced. But the problem started when there was disagreement over the decisions, because nothing was written down in advance. There was confusion about the profit calculation, who invested how much, who was working how much. Because at first we started the business by blaming ourselves. So from my experience, before entering into a partnership, all the rules should be written down as clearly as possible. Otherwise, it also affects the relationship. Definitely sign a stamp paper. If your friend gets upset about it, there is no problem.

[Ruttoshi]

I believe that before going into a partnership business it should be with someone that you trust in order to avoid problems in the future. Also, how much that Mr A bring will determine his share of profit, all these will be discussed and come into agreement.

Decision taking, roles and responsibilities will be discussed so that everyone knows his limit in the business. Provided that both parties have the samw goal and knowledge of the business, it will flourish.

[GeorgeJohn]

According to investopedia, Partnership is a formal arrangement between two or more parties to manage and operate a business and share it's profits.And however, it has some advantages and disadvantages.

When two like minded people with separate skills joining as a team to run a business will have much better chance of winning because more mind brings in more knowledge to the table and managing it in the tough times can be easier and it can also work for small scale business too as long as you can be sure the partner is having the same vision as you, if not then thing can take a you turn.

The thing is that they might achieve success for the first place the started the business or the teamwork but it is obvious that they must have a crash whereby one person will like to oversmart another in order to have more benefits

So this have been always the problem of a joint business from unknown through parties who come together to work as a team, so anyone who you want to partner with in business you have to know the person 85% character before you collaborate with the person

Because I've seen a joint business between two parties and another killed the order because of the business growed or expand much and the other person want to profit in all, so that is one of the disadvantages of partnership...one most trade with caution.

[Fortify]

According to investopedia, Partnership is a formal arrangement between two or more parties to manage and operate a business and share it's profits.And however, it has some advantages and disadvantages.

Merit: Most individuals do not have the time or resources to run a successful business alone therefore give room for partners to put resources together and abilities.
Partnership also make the day to day operation of a business more manageable than when one person were involved.

Demerit: During sharing of profit, partners may assume responsibility for any losses or dept from the other partner.
There is a higher chance of conflict and mismanagement.
However, if one of the partners want to quit, there may be difficulty reaching agreement about selling the business.

Partners are sometimes essential to launch and grow a business, however much certain people think they can go it alone. It can be a heavy burden to launch a business and you often have to become a jack of all trades, so if you can find someone genuine that is able to wear some of the hats, then you should definitely consider giving them a cut - all the way up to 50/50 if they have immense value. The most dangerous thing for a hard working entrepreneur can be a bad partner though, as you can end up putting all the effort in while someone else simply leaches off the fruits of that labor at the end of it. Even close friends can fall apart in this sort of situation and resentment can fester if one side things that the others are not working or adding enough value.

[Jewan420]

Everything has its advantages and disadvantages. Just as in partnership business, you get more hands to work with and get capital. Similarly, you have to share the profits. There will definitely be difficulties here and you have to take necessary steps for these difficulties. First of all, do not make a partner with someone with whom you do not have a good relationship for at least 3-4 years. When you have a good relationship with someone for 3-4 years, you will know about his good and bad and you will also understand whether you both have a common mind or not.

The main thing is honesty. If you have a good relationship with a person for 3-4 years, it is easy to be sure about his honesty. You can even prepare an agreement in the beginning where details about profit sharing, work and shares are written. If someone wants to sell his share, then there should also be details about how it will be done. The most important thing is the harmony of the partners. If everyone has a common mind, then any decision will be easy to take.

[SUPERSAIAN]

It's very difficult to grow without a partner, and it's even more difficult to grow with partners. As with anything, there are advantages and disadvantages. Growing a business with good partners would be much easier. Imagine multiple people working towards the same goal, even if there's only one person.

One partner fills in the gaps, or the other requires capital to grow the business, and one partner fills in the gaps and collects from the revenue. The most common problems arise during the revenue phase, or when borrowing, if your partners are virtuous, honest, and trustworthy, problems can be resolved.

[peter0425]

I faced this situation. I myself started a small business with two friends, it was going very well in the beginning because the work was being shared and the expenses were also reduced. But the problem started when there was disagreement over the decisions, because nothing was written down in advance. There was confusion about the profit calculation, who invested how much, who was working how much. Because at first we started the business by blaming ourselves. So from my experience, before entering into a partnership, all the rules should be written down as clearly as possible. Otherwise, it also affects the relationship. Definitely sign a stamp paper. If your friend gets upset about it, there is no problem.

Honestly, friends can be the worst business partners because you might be too scared of ruining the relationship that you end up walking on eggshells around them instead of running the business as effectively as possible. The problem also is who starts a business without writing anything down?! You need to document everything properly not only for yourselves but for registrations and such.

[Findingnemo]

~
The thing is that they might achieve success for the first place the started the business or the teamwork but it is obvious that they must have a crash whereby one person will like to oversmart another in order to have more benefits

So this have been always the problem of a joint business from unknown through parties who come together to work as a team, so anyone who you want to partner with in business you have to know the person 85% character before you collaborate with the person

Because I've seen a joint business between two parties and another killed the order because of the business growed or expand much and the other person want to profit in all, so that is one of the disadvantages of partnership...one most trade with caution.

The risk can be minimized with proper documentation of the partnership and by overseeing all the profit loss all the time. Still the risk cannot be mitigated for sure because a person can change at any time no matter how close they are but I had seen guys who are doing well when they partnerup because they as a group can run 10 different business so even if one or 2 is not in profits the others can consolidate it here and also they can share all their responsibility but again they fized that this is how they are going to do and sticking with it.

[Dimitri94]

There are some advantages and disadvantages in doing a partnership business. Considering the time, if a ordinary people wants to run a business, it will be difficult for him to establish it. Many times a person is seen to be very willing but does not have the financial back up. Again, there are some who have financial support but do not have the proper intelligence or man power. Moreover, it cannot be thought that a person will be expert in all aspects. Therefore, if there is a desire to establish a business, then definitely a partnership business can be good choice. Partnership business is not suitable for those who do not have financial and man power or lack of skills.

No problem in starting a partnership business, when there is a matter of sharing profits or other things in the business, some obstacles can arise and to avoid those obstacles, it is necessary to make a good deed. If everyone knows about the conditions and agrees to start a partnership business, then that business will survive.

[Gozie51]

Demerit: During sharing of profit, partners may assume responsibility for any losses or dept from the other partner.
There is a higher chance of conflict and mismanagement.
However, if one of the partners want to quit, there may be difficulty reaching agreement about selling the business.

Most of the things that will cause problem in business won't cause those problems if there were written agreement. In terms of partnership, there are different types of partnership and their duties on how they run the business including financial commitment and otherwise are stated  Also, the ways to terminate the partnership are all enshrined in the partnership deed, so that shouldn't be a problem. Agreements are written for the future of the business and it can be visited at anytime that the need require.

[slapper]

The Investopedia definition is shirking some heavy lifting by referring to it as formal arrangement. Most partnerships are just two people who underestimated how differently humans process risk, fairness, and exit timing. Interesting is that the merit you have put (pooling resources) is the same mechanism as the demerit (shared liability). It is not two distinct features. It is one aspect that can be seen across time periods. Year one: "We pooled our strengths! Third year: Why am I standing by your choices? The structure didn't change. The information did

Collaborations are successful when both parties share the same definitions of words such as profit, manageable, and success. Those definitions are the result of childhood financial trauma, risk tolerance, and being burned. And what about scaling and lifestyle business? Personal emergency, Business opportunity?

[GiftedMAN]

Demerit: During sharing of profit, partners may assume responsibility for any losses or dept from the other partner.
There is a higher chance of conflict and mismanagement.
However, if one of the partners want to quit, there may be difficulty reaching agreement about selling the business.

Most of the things that will cause problem in business won't cause those problems if there were written agreement. In terms of partnership, there are different types of partnership and their duties on how they run the business including financial commitment and otherwise are stated  Also, the ways to terminate the partnership are all enshrined in the partnership deed, so that shouldn't be a problem. Agreements are written for the future of the business and it can be visited at anytime that the need require.

Having a written agreement with legal backing is the best way to avoid problems of sharing of profits and other financial deals that may likely arise during the course of the business the agreement will cover how the business will be operated, how the profit will be shared, who the business will continue or stop if one person decides to back out of there are no such agreements there will always be issues but having the agreement will make the partners to remain in good conduct otherwise they will visit their agreement when they want to have issues.

[Berry2d]

Looking at the economic situation now you will be able to identify some challenges affecting daily activities and one of it is finance which is the propelling force towards success, one may have the desired skill, knowledge and qualification required to esterblish a business but cannot do it because of financial handicap while others may have the money but lack the qualities required to do some so this brought about the idea of partnership.

Partnership involves coming together of two or more individuals with different qualities to esterblish a business, It is the best business strategy because it gives room for division of labour depending on the area suitable for the people involved in it and it has a lot of advantages and disadvantages also. Some of the advantages are its open structure that permits sharing of responsibilities, introduction of various skills and more capital for the potential growth of the business while the disadvantages are : delay in decision make, profit sharing by percentage, conflict generation due to misunderstanding among partners and so on

[SamReomo]

There is a higher chance of conflict and mismanagement.

The chance of conflict is much higher in partnership than running a business your own self. I've seen partners who weren't honest and that led to destruction of the business and created some issues between both partners. So, in my eyes it's always better to start your own business by your own instead of doing any type of partnership with anyone.

[Accardo]

Partnership is preferable in time of market crisis compared to sole proprietorship where one person takes all the losses. Also, it helps with growth  and facilitates easy contribution in fund raising for a new project or idea. The demerit includes misunderstanding one another and trust issues. That is why this has to be an easy going or a slow process when choosing who to work with on partnership.