Partnership, the merit and demerit

[Pi-network314159]

The best form of business is sole proprietorship business, because it gives you the opportunity to do your business on your own without multiple decision unlike the partnership business. There is A lot of disadvantage in partnership business than in sole proprietorship business.
1. In partnership business, there ideas may vary and may cause disagreement.
2. There level of contribution is limited, that is some may not be contributing to ideas of the growth of the business but always want to gain profit or want an equal share from the business.
3. Personal decition may not be possible except you call for deliberation among partners.

All this and more is the reason why I don't like partnership business. The only reason I will have love it is because the shear the risk unlike sole proprietorship business that involves personal Risk, but aside that solle proprietorship business is the best.

[El_Tammy]

Talking about partnership, it will be very ideal to first of all take a good look from it's positive aspect. Before a set of people will come together to work to achieve a goal, definitely there is a skill each of them can input or bring in for development and that's one of the major advantages or on this context merits of partnership.
In simple terms, it helps on the aspect of Division of Labour. With every key player of the organization having what they can offer to see that there is constant progress, they will be a very active form of contributions towards the activities of the organization.
Two heads as they say, is better than one because the knowledge the different persons hold is much better combined than just one person. I believe that is to say with more people on board, there's more to achieve.

[ThankGodkk2]

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.

Merits of partnership include:
1) Shared responsibility which reduces stress unlike in the sole proprietorship business where every activity is carried out only by the sole proprietor.

2) Best in decision making: Like the saying goes two good heads are better than one, partnership creates opportunities for people to bring in their diverse skills, and ideas.

3) More capital is pulled into the business.

Demerits include:
1) most times disagreements can make decision making slow and therefore taking time to execute plans.
 
2) Profit must be divided among partners thereby making each individual resources lesser than when running the business alone.
 
3) One partners mistake affects every other person in the business.

[batang_bitcoin]

It's hard to get into partnership that you just got in as an investor. I don't recommend that if you don't know the business and people that you are investing in. It's best to do this if you have the knowledge of the people that you are entrusting your money. I've got failed partnerships and probably not going to do that again. In my case, some are new friends but there are also relatives and old friends. Still, don't get in when you have no decisive attitude because the business owners are always at the advantage there, they can adjust the profit sharing if ever you're in profit or just tells that you're about to get bankrupt and needs more funding.

[Zigabel]

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.

Just like the merits, there will be demerits in almost any thing you see in this life, for, this is not a demerit that is even to be considered a problem and that is because there are several ways to tackle this particular demerit you have just stated one of which is to put up an agreement at the early stage of the business or there should be an MOU which the partners will abide by, in the MOU it will be stated how they are going to share profit and how they are going to share losses and in the case of a partner trying to break out, what are the conditions to be met and what such partners are entitled to, all of this will be covered in the MOU that way they will not have to struggle with all of that.

 the demerit i see that most partners struggle with most times that is not easily resolved is usually with decision and policy making in the business, there are times when partners regardless of the number of the partners will not agree on a particular decision on how the business should be run at a time probably when the business has experienced some sort of growth which may demand they make some changes which one or two other of the partners is not ready to implement, they begin to find it difficult to convince the others to taking a stance or giving consent to the new police they are hoping to implement to help the business, this has to be one serious demerit that most partners struggle with but with a one mans business he just decides and it is effected almost immedietly.

[justdimin]

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.

Depends on who you partner with. Many say that you should not partner with family, but which family are we talking about? I own a business with me, my wife, my dad, and my mom together and I am doing very well. All of our goals are lined up well together, and it doesn't hurt any of us.

I can't spend much time on it, but I help them with computer stuff when they need someone, like they asked me to do some excel sheet of inventory, so they wrote it down on paper like it was 19th century lol, and I made an excel out of it, took me like half an hour at most. So yeah, know who you are partnering with and you can do very well, or you can do very badly. It should be important who we are partnering with and could be amazing we partner with people who help us.

[MarissaLopez]

A lot of issues has really occurred between two parties on the grounds of partnership and before one can undergo that there should be some level of trust and be knowledgeable inclined on that aspects because partnership without understanding usually results to misunderstanding and arguments between both parties involved.

before now I've had this thought of partnering with someone for my business and the first attempts results made me back down on having anything doing with partnership ever again. One thing is having the right person and another is understanding each other enough cause it's two different people involved and there must be a high stance of agreement to achieve a lot.

[Agbam]

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.

You’ve said the most important thing in any kind of partnership, there MUST BE AN AGREEMENT, A SIGNED LEGAL DOCUMENT containing all their responsibilities and shares, every bit of every scenario must be accounted for, no room to leave things to chance. In business there’s no friend or family, business should be business don’t start one saying it’s a brother or a friend. People change and to protect your interests in case of tomorrow you need to have a signed legal document.
Partnership is a good way to grow your business but this agreement should not be verbal, it should be written and signed, this is highly important and can’t be overemphasised enough.

[BitBakerr1]

For me I don't see any demerit or disadvantage in having a partner in business a lot of big companies has partners in form of shareholders one single person cannot run a big successful business alone with his or her income however in some cases some set of people do it alone if you have a partner or you want to have a partner because your income cannot carry the company or business all you need to do is to have a written agreement on a lot of things for example selling the company, sharing profit all this things should be written down so to avoid issues in the future.
When you have a written agreement between you and your partner their won't be a problem in the future however whenever there's a problem it will surely go to court and when it goes to court the court will request for the written agreement and when it is being handed over the court we simply order that the written agreement should be followed as long as it is fair to both parties.

[tottong]

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.

This can start out well, depending on how you establish the partnership with your partner using a specific pattern.
Partnerships do have positive and negative impacts, but they depend on the specific needs.
If you truly want to collaborate with a partner, the main thing you need to establish is an agreement, this can include a profit-sharing pattern and so on.
If an agreement isn't made at the outset, there's a risk that even if things go smoothly, someone will be disadvantaged later, especially regarding the distribution of profits.
I prefer partnerships involving the supply of goods so we don't have to share the profits because we pay upfront after the goods are supplied.

[Alone055]

Believe me, starting a business in a partnership is never a good idea. I know that people do it only because they can't do everything alone, and on top of that, they know that if they partner up with someone, they will get 50% of the resources from the other party, making it more affordable for them to get the business started, but based on my experience and observations, it's better that you do some compromise, but start the business alone, because things might look great at the beginning, but they don't stay the same after some time.

When we are spending time with someone, even if it's done professionally, like you are spending time for the business or doing some job, the initial period seems okay, you get to know each other, you compromise on things, try to avoid problems rising, but after some time, it becomes irresistable, even if you try, you won't be able to hold yourself for long, your patience will start to get over, and that's when problems start to rise.

Whether it's about money, workload, or anything else, there will surely be arguments and fights after some time between two partners in a business. It's very rare to find two partners who are happily running a business and have nothing against each other at all.

[Pearl_20]

I'm pretty sure that before people decides to become partners in any business that a written agreement must be involved.

When it comes to business partnership, you really have to know who's getting involved with you on that as some person's will not abide with the initial agreement later on and that can lead to conflict, and even put the business at risk.

A friend of mine convinced her hubby to fund a business with a friend of hers and according to her a written agreement was carried out, sighed and documented by both parties, but she later noticed something that her husband has been funding the business without any result from the other person and right now the business is now on hold. For a successful business, I think the both parties should be passionate about what they're going into, it should also be the kind of business that both persons have  much knowledge about.

Partnership is good only if both parties share same ideas and they're are very open to each other, human being is never predictable that's why most person's will decline offer of partnering with someone , have seen siblings who are together in the same business turned rivals, separation and all that.  

Well, if you know the other person enough for you to accept such offer is good because it helps to swing business ideas into actions especially if one person amongst others is financially buoyant to finance the business but the possibility of these partners abiding with the initial agreement and staying true to themselves is another thing entirely..

[yhiaali3]

Yes, I agree with you about the advantages and disadvantages of partnerships. After entering into several partnerships with different people and experiencing some negative effects, I decided not to enter into any partnerships.

"There is a greater potential for conflict and mismanagement."

I completely agree with you on this point because I have experienced it specifically in all the partnerships I have formed. Partnerships begin with a lot of affection, understanding, and big dreams, but they often end in conflict and sometimes hatred between partners.

[Scarlett_23]

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.

It is very good to do business as a partner if they have honesty and ideals. Some of the partners are more hardworking and some are more talented. In that case, a good position can be created in the business by combining the two. There are advantages as well as some obstacles. A person very close to me started a business on the basis of partnership. Day by day they were improving very much in the business. After getting good profits for several years, the one who had more responsibility got jealous and wanted to take the business for himself. As a result, there was a rift between them and they started their own businesses separately. However, the sad thing is that none of them could succeed in their sole business later.

[MRY]

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.

It is very good to do business as a partner if they have honesty and ideals. Some of the partners are more hardworking and some are more talented. In that case, a good position can be created in the business by combining the two. There are advantages as well as some obstacles. A person very close to me started a business on the basis of partnership. Day by day they were improving very much in the business. After getting good profits for several years, the one who had more responsibility got jealous and wanted to take the business for himself. As a result, there was a rift between them and they started their own businesses separately. However, the sad thing is that none of them could succeed in their sole business later.

I absolutely agree with the fact that candour and idealism are the ingredients that must be used in business alliances and your storey is a very lucid example of risks of forgetfulness of the said items. When the revenues begin to run high, there is always a desire to feel ownership to the success due to the increased efforts of operations made without really taking into consideration the essential contributions of talents and vision of the other partners.

The division on the grounds of an offended partner that wants to be put in charge proves incompetence to value the collective good, they lose the memory that it is the ecosystem they built that makes their business grow. Even their personal failures prove the effectiveness of an emotional input that is the basis of initial success.

[Darker45]

For me, the risks involved with partnership far outweigh the benefits. I'd rather go for sole proprietorship than partnership. Run the business yourself, operate it yourself, and you're free from toxic conflicts between co-owners that happen all the time.

Bright minds, brilliant ideas, innovative proposals, and the like? Hire the right people and pay them well. Let them speak their minds. Nurture brainstorming in the team. You could get it from the people you're paying. You can fire them right away if there's too much friction. That way, the business runs smoothly. It doesn't have to suffer because of disagreements.

[rat03gopoh]

I've had experience running a partnership without a written agreement, and it ultimately soured after the business name became well-known, even though we thought everything was well-planned and well-thought-out. I wouldn't say there was any selfishness between us. Even if it's not a multi-million dollar business, a fair partnership is based on a written agreement, especially if the partners are close friends.

[bettercrypto]

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.

What you said is good, and it definitely holds true. It's like in a business there can't be one without teamwork, and there can't be teamwork without a team.
In short, if the teamwork is good, that means the group effort they're making is also good.

And if this is what happens, you can expect a good result for the business. In this scenario, it's impossible for the business not to grow,
and its only direction is surely toward a success journey, right?

[GEMIN_M4]

Since this is a crypto platform, the word partnership should not be pointed to running a business only, how about talking about crypto and partners? Do you know how many startup projects that partnered with big names in crypto space like Binance and Coinbase? They still rug pulled their investors not too long ago.

In this wild West, trust partnership at your own risk, the lack of getting developers arrested have make partnerships not the first priority anymore, developers can show their faces to the public, raised millions of dollars and still rug pulled without returning a penny, years back when a project have a problem and can no longer proceed they refund investors funds, today not so anymore.

The only thing good from partnership is on the company, business or project, as for customers or consumers or investors, they are on their own, the risk of still losing money stands, that partnership thing benefits the owners as they will be able to raise tons of money.

[SATWAT]

What you said is good, and it definitely holds true. It's like in a business there can't be one without teamwork, and there can't be teamwork without a team.
In short, if the teamwork is good, that means the group effort they're making is also good.

And if this is what happens, you can expect a good result for the business. In this scenario, it's impossible for the business not to grow,
and its only direction is surely toward a success journey, right?

Businesses need team as long as it is not some small household business where you manufacture basic commodities and sell them locally or online. Even a medium scale business needs a strong team and without them, business remains just as an idea with no implementation. Businesses are difficult to scale and a single brain can't handle all the operations. We will always need people on our team who we can count upon.

It is not always necessary to look for partners in this case. We can always hire a team and put them on monthly payroll right? This will make us the owner of complete profits but will also come with it's own demerits like paying fixed salaries each month even if there is loses incurred.