Giant business with Partners or Small business on your Own

[Webutxo]

Three days ago the lady who has about 10 thousand dollars in the shares asked back for her money, that she doesn't want to continue because she is getting married and she has to fulfill the formalities for that. Usually summer remain very good for business. The season is gone and she still insists to give her money or else she will file a complain. 10 thousand doesn't seems that high amount in western countries but here in underdeveloped nations it is more than enough. The factory hasn't been on its own feet because hardly one and half year had passed. Now we are thinking of selling the factory to return her shares back even if it goes in loss.

I would prefer everyone whoever is thinking of starting his/her own business. Be a boss of your own company and never do partnership or the results would be the same. Thankyou all for your attention!

Wait, wasn't the contract signed by co owners of the business, why are you acting like you are a weak person. If you and the second person all agreed with the third person then you don't understand the purpose of the paper works you did in the beginning. As long as you all had an agreement, nobody was force to sign the paper, there was a duration given for review and it was later sealed, there is nothing on earth the lady can do to have her shares.

She knew very well in the beginning of having marriage ahead and yet she decided to invest in the business. You both should sue her, the court will be in your favour, they will tell her to give you guys a certain agreed time on the contract. Your last paragraph isn't important right now, go and face your business and bounce back, her money is you guys least concern right now.

[Cheema02]

It's better to avoid partnerships in business because partnerships always involve different understandings, and so on. If we're the boss, we'll naturally make the rules ourselves, and the results will be greater. However, not all partnerships are unsuccessful. In reality, many people start businesses with partnerships, but ultimately their businesses suffer or even go bankrupt.

However, whether or not to partner with someone carries risks. However, if you want to partner, you should partner with someone who is disciplined, always adheres to the rules, and is skilled in business. It's certainly not easy to find like-minded and intelligent people, but ultimately, I think it depends on the situation, conditions, and circumstances.

I think that for business ownership only one mind is enough to run and grow it, but we observe a lot of businesses in which different people have partnerships and they suffer bankruptcy. Here the actual problem is that when two or more different minds disagree on one decision, then it's going towards loss, because every individual blames the other partner for their own mistakes and this leads to wrong decisions, so with wrong and improper direction, companies don't grow much and always struggle to build market cap. But that does not mean that we should not do business in partnership. What's your opinion about it?

According to my observations, partnerships are not always negative for business because we have seen a lot of examples where different owners run companies at national and international level and have an identity in the market. After all, they follow discipline, so the actual problem is the choice of the right person for the right department. Before starting a business, we should meet our partner and observe his ethics. If you pass him, then form a partnership with him and build an empire.

[L E G E N D A R Y]

Based on everything I have read in this thread, and my own knowledge, experiences, and general observations in life, I would say that a business that you start alone will give you less trouble than a business that you start with a partner or multiple partners, and what we are discussing in this thread is just one of the many reasons for it. Wanting to have an exit from the business and demanding to get the funds your share is worth is a problem, but there are many other problems as well in business partnerships, one of them is the hunger for getting or making more money than others, and this often turns partnerships into rivalries and enmity that doesn't usually end well.

People who start to have evil thoughts because of a hunger for more money can start making plans and plots against others, and might even get things done that they shouldn't do. I have seen so many stories where business partners are killed or kidnapped or just vanished and then other partner or partners take over the whole business. I'm not talking about movies or shows, I'm talking about real life, because such things also happen in the real world. This is why I think a person should always go with a business of their own instead of involving others, even if the business is small, you will at least have peace of mind.

I believe the real and biggest problem with partnerships isn’t just always about the money, but how things turn out the moment that interests stop to align. It is very possible for two people to begin a partnership with the same vision, but along the line, and later have a change or switch in their priorities. These are things that are inevitable and if not attended to could always result to one conflict or the other, and that’s why clear roles, financial transparency, terms of exit is very important for every partnership if you wanna partner with someone. Trust is good, but it’s only the foundation of a partnership, it’s not enough to protect a business.

[Zigabel]

I'm really trying to understand how is it that a single persons share is worthing almost the whole factory, because how is it that you people are having to sell the whole factory to recover her share invested in the business,  then it's more like she technical own the business,  because it sounds like she's the highest shareholder,  and as the highest stake shareholder,  you almost own the business.  These are understandings you people should have clarified before getting into the business. Again,  there should have been a policy or agreement term on how a shareholder gets to liquidate their shares if they want to, and not just coming up at a time to bring the business to a halt against the will of other shareholders because they want to liquidated their shares.

One of the replies I red here mentioned mentorship,  I agree with that person, because if you people had some good mentorship,  they would have guided you people through policy making and agreements on running  the business which would have helped you people save the business in situations as this. The problem here isn't with partnership,  but with the Terms of the partnership,  there are people out there in good business partnership and are making the best out of it, so OP saying don't go in to partnership because of their experience isn't completely agreeable,  rather it's better to be particularly defined with terms of agreement before going into partnership,  that will help a long way and save you a lot of stress.

[yixichloro2xx]

It's better to avoid partnerships in business because partnerships always involve different understandings, and so on. If we're the boss, we'll naturally make the rules ourselves, and the results will be greater. However, not all partnerships are unsuccessful. In reality, many people start businesses with partnerships, but ultimately their businesses suffer or even go bankrupt.

However, whether or not to partner with someone carries risks. However, if you want to partner, you should partner with someone who is disciplined, always adheres to the rules, and is skilled in business. It's certainly not easy to find like-minded and intelligent people, but ultimately, I think it depends on the situation, conditions, and circumstances.

I think that for business ownership only one mind is enough to run and grow it, but we observe a lot of businesses in which different people have partnerships and they suffer bankruptcy. Here the actual problem is that when two or more different minds disagree on one decision, then it's going towards loss, because every individual blames the other partner for their own mistakes and this leads to wrong decisions, so with wrong and improper direction, companies don't grow much and always struggle to build market cap. But that does not mean that we should not do business in partnership. What's your opinion about it?

According to my observations, partnerships are not always negative for business because we have seen a lot of examples where different owners run companies at national and international level and have an identity in the market. After all, they follow discipline, so the actual problem is the choice of the right person for the right department. Before starting a business, we should meet our partner and observe his ethics. If you pass him, then form a partnership with him and build an empire.

Disagreements is the main issue that comes with Partnership. It's not eveytime that 2-3 minds will align, each person's will always want their own idea to be taken.  Especially when they believe their idea is better, which affects the business.  A joint or partnership business requires patience and mutual understanding for growth. I myself don't really like partnership but, if you are determined to grow your business and you have no ways to do that , then partnership is best option. I have said it here before, with partnership someone will get different perspective and more creative ideas, capital being raised quickly and many more. I agree with you on the part of observing your partners ethics, not only that, his past business records should also be reviewed in order to know the kind of person you want to grow your business with.

[acener]

I prefer to go alone instead of having partners, going along makes you in control of everything you don't need anyone's approval to do something on your business.
Being solo with small business gives you freedom and no pressure, you could do anything you want and anytime you want.
You wouldn't even be in the similar situation where your partner would take their profit and capital for any reason.

[Crakryptvest]

I believe the real and biggest problem with partnerships isn’t just always about the money, but how things turn out the moment that interests stop to align. It is very possible for two people to begin a partnership with the same vision, but along the line, and later have a change or switch in their priorities. These are things that are inevitable and if not attended to could always result to one conflict or the other, and that’s why clear roles, financial transparency, terms of exit is very important for every partnership if you wanna partner with someone. Trust is good, but it’s only the foundation of a partnership, it’s not enough to protect a business.

Regardless of our views or how we individual interpretes this, the common problem of partnership is money, I'm not disputing what you said but money has always been the problem, the sharing formula mainly, partners may agree initially that the will be sharing their profits, 60/40, along the line there might be a change of mind from the party that's collecting 40 which might result in calling renegotiation, and once the other partner does not buy the idea, it might result to conflict that might lead to both partners deciding to go separate way, in my opinion, where most of the problem come from in partnership is money.

[Pablo-wood]

I believe the real and biggest problem with partnerships isn’t just always about the money, but how things turn out the moment that interests stop to align. It is very possible for two people to begin a partnership with the same vision, but along the line, and later have a change or switch in their priorities. These are things that are inevitable and if not attended to could always result to one conflict or the other, and that’s why clear roles, financial transparency, terms of exit is very important for every partnership if you wanna partner with someone. Trust is good, but it’s only the foundation of a partnership, it’s not enough to protect a business.

Regardless of our views or how we individual interpretes this, the common problem of partnership is money, I'm not disputing what you said but money has always been the problem, the sharing formula mainly, partners may agree initially that the will be sharing their profits, 60/40, along the line there might be a change of mind from the party that's collecting 40 which might result in calling renegotiation, and once the other partner does not buy the idea, it might result to conflict that might lead to both partners deciding to go separate way, in my opinion, where most of the problem come from in partnership is money.

For people to partner there must be a written document for agreement. The issue of sharing formula discussed from the onset even before they start committing their resource to the project or investment. In-fact partnership in this era involves active participation of legal firms and agreements. To me I don't see money as the issue most times it goes beyond that and in some cases untreated concerns that both parties ignored from the inception of the business triggers this rift. And one of such concern is leadership roles and business structures.

[Solodoski]

I think partnership and sole proprietorship both has their risk, because when you are running a one man business you bear all the risk alone, although you have the benefit of making decisions alone without consulting anyone, while in a partnership all partners bear the risk together, but it also takes consultation because decisions is made. I think it depends on the individual to decide which is more suitable for him or her. In the case of OP and his partners, I think they should have written these things down in an agreement,  probably how long they should be in the business together before anyone decides to opt out of it. I know he mentioned that they have other written agreements,  but I think this should have been included and probably they will not be in this situation right now, because they already have a binding agreement on it.

[slapper]

I'm really trying to understand how is it that a single persons share is worthing almost the whole factory, because how is it that you people are having to sell the whole factory to recover her share invested in the business,  then it's more like she technical own the business,  because it sounds like she's the highest shareholder,  and as the highest stake shareholder,  you almost own the business.  These are understandings you people should have clarified before getting into the business. Again,  there should have been a policy or agreement term on how a shareholder gets to liquidate their shares if they want to, and not just coming up at a time to bring the business to a halt against the will of other shareholders because they want to liquidated their shares.

One of the replies I red here mentioned mentorship,  I agree with that person, because if you people had some good mentorship,  they would have guided you people through policy making and agreements on running  the business which would have helped you people save the business in situations as this. The problem here isn't with partnership,  but with the Terms of the partnership,  there are people out there in good business partnership and are making the best out of it, so OP saying don't go in to partnership because of their experience isn't completely agreeable,  rather it's better to be particularly defined with terms of agreement before going into partnership,  that will help a long way and save you a lot of stress.

The problem you are talking about for share valuation you is an event, that no one was ahead of and prepared for the infrastructure. Ownership on paper and what it costs to actually buy that ownership out.

I also feel like it is often forgotten that the person seeking to leave is not necessarily a bad guy. They have a right to a say. They want what is theirs. But if there is no established way to do this, the process of leaving begins to seem like aggression even if it is not. The procedure was never built so now the emotion has nowhere structured to go.

A good mentor asks the uncomfortable questions early. Not only for growth or revenue. All those what-ifs, though. What happens when someone wants out. What method are you using to value shares. Who breaks a deadlock.

[Obulis]

Some independently runned businesses are not actually Small, they are bigger than some partnership businesses. To think of it, the reasons behind every partnership is what determines what's better. When in need of more financial support and others reasons partnership becomes a good option to fatten and fasten up the service. Shared risks can also be a propagator of partnership. There are so many reasons for partnership some of which are unavoidable as the case may be.

[Compromise me]

Doing solo or small levels business has its own advantages, but we cannot ignore the importance of partnership if partners are loyal. But mostly people prefer to do their own business because loyalty is rare now, even written agreements can be ruined, trust can be break, or now advanced level fraud are circulating. To avoid all these issues its better to start your own project, work on your own ideas, or establish your own brands. It is required lot of effort or years of struggling but success is sure, because when every power of decision in your own hands so delay in any decision cannot possible. Solo business doesn't mean that rum your business alone, but to expand it you can hire employees under your supervision. Here the things that appeal me is more, whole responsibility of profit or loss only realted with you. So planning can he change accordingly, there is no need of long arguments or any partner's will.

[Cookdata]

I prefer to go alone instead of having partners, going along makes you in control of everything you don't need anyone's approval to do something on your business.
Being solo with small business gives you freedom and no pressure, you could do anything you want and anytime you want.
You wouldn't even be in the similar situation where your partner would take their profit and capital for any reason.

From the comments I have gone through, it's looking like some of us don't understand how business work. You know what they call CEO right? That title is joke around on social media where you see business owners and small entrepreneurs entrepreneurs be using it but it's not. That's a ranking in a company with the largest share and that person get to decide the interest of the business. You can own a business with any partners and be making decisions and the rest of the people must follow your decision.

Tesla for example is billion dollar company, you can't even build your small business to that level, not possible. The company is not own by a single person, it's a joint company by people but the peesn with the largest company shares is the CEO and that is Elon Musk. If another person buy shares of the company that is larger than Elon, he would have to step down from that position and another person with the largest share will take over. That is how business is run in large companies.

[L E G E N D A R Y]

Regardless of our views or how we individual interpretes this, the common problem of partnership is money, I'm not disputing what you said but money has always been the problem, the sharing formula mainly, partners may agree initially that the will be sharing their profits, 60/40, along the line there might be a change of mind from the party that's collecting 40 which might result in calling renegotiation, and once the other partner does not buy the idea, it might result to conflict that might lead to both partners deciding to go separate way, in my opinion, where most of the problem come from in partnership is money.

One of the things I know that can potentially expose problems in a partnership is money, but I do believe the deeper issue is usually expectations which weren’t properly agreed or settled on. A 60/40 split may actually look straightforward on paper at the beginning, but the moment that responsibilities and losses arise, or changes in contributions, there’s every tendency for disagreements to arise. That’s why I believe it’s crucial to have a very clear and transparent agreement, because even good relationships can get fractured or even break down the moment the rules become unclear.

[Miles2006]

I would prefer everyone whoever is thinking of starting his/her own business. Be a boss of your own company and never do partnership or the results would be the same. Thankyou all for your attention!

In the history of business partnership something always goes wrong, this is not about looking for the best partner or having a sufficient fund to keep the business going when one partner is not interest anymore. The fact is anything can go wrong and anyone can decide to take their money back on agreement, honestly the paper signed should be more strict for example no one is eligible to take their shares back when the business is not stable yet or on any circumstances.
I once witnessed same kind of situation, though two brothers had a joint school running smoothly while they had some misunderstanding later and then decided to split the shares. Everything went successfully, I noticed one of them is no longer functioning well still I don’t know what could have been the outcome if they never had a misunderstanding leading to a split of shares.
Honestly op is right, owning a business alone grows faster  compared to joint agreement though we have a lot of businesses struggling without any distraction from a third party, business growth depends mainly on finance and determination.

[Livingleged]

I was having a discussion with a friend earlier today and he was like he and his two other friends from medical school had plans to partner and build a medical facility after becoming Doctors, now they are all medical doctors and two of among the three are more successful the one, so they didn’t include the third person in continuation with the plan.
I told him it’s even better because running a partnership business comes with lot of sacrifice and sometimes one will still feel cheated, and begin to act somehow. that could ruin the friendship of so many decades. I think the best is just the sales of share to other and not necessarily partnering with the sole owner of the business

[Ziskinberg]

I prefer to go alone instead of having partners, going along makes you in control of everything you don't need anyone's approval to do something on your business.
Being solo with small business gives you freedom and no pressure, you could do anything you want and anytime you want.
You wouldn't even be in the similar situation where your partner would take their profit and capital for any reason.

If you can make it work alone, why not?

However, going solo won't work anymore with a bigger business. There are bigger decisions to make, unlimited tasks, and financial pressures and everything will be vulnerable to errors if you can't handle the business well. So you need a good partnership with a trusted friend or colleague, that way both of you will have your own task of sustaining the growth and stability of the business without compromising your life's balance between work and leisure.

[Crakryptvest]

For people to partner there must be a written document for agreement. The issue of sharing formula discussed from the onset even before they start committing their resource to the project or investment. In-fact partnership in this era involves active participation of legal firms and agreements. To me I don't see money as the issue most times it goes beyond that and in some cases untreated concerns that both parties ignored from the inception of the business triggers this rift. And one of such concern is leadership roles and business structures.

Profit sharing may have to be agreed upon by prospective partners before every other step is taken in business I understand that perfectly, but do you think there won't be a time in the future when something might lead to one of them pressing hard for that clause of the agreement to be revisited?

Why is it difficult for us to understand that sharing of profit in partnership might eventually become a problem at some point, you should try to know why most people don't push for full partnership, although there are different reasons for that, I won't say it is limited to profit sharing alone, I think we should understand the power of  money, and what it can cause especially when trust doesn't exist any more.

[SUPERSAIAN]

How does the saying go? "If you want to go fast, go alone; if you want to go far, go together"  Though in business, many would add that the fastest way to ruin a friendship or a new enterprise is an ill-prepared partnership.

How can she simply ask for immediate cash out if your agreement explicitly states that no partner can leave during the down season, requires a four-month notice period and restricts share sales to internal partners? Contractually, she is bound by the terms she signed.

There is a saying that goes, "You can grow up without a mother or father, but you cannot grow a business without a partner"—a sentiment that applies perfectly to the business world. You might be able to carry a venture forward on your own up to a certain point, but if you truly want to scale up and combine diverse talents and capital, the right partners are essential. Especially in a major venture, having a single person manage everything is both difficult and unsustainable.

However, forming a partnership is not a decision to be made hastily based merely on the idea of ​​growing together; choosing a partner essentially means establishing a long-term business relationship.

[Oasisman]

I prefer to go alone instead of having partners, going along makes you in control of everything you don't need anyone's approval to do something on your business.
Being solo with small business gives you freedom and no pressure, you could do anything you want and anytime you want.
You wouldn't even be in the similar situation where your partner would take their profit and capital for any reason.

This is what everybody wants until their business sank.
But don't get me wrong, everything you said is true. However, for a beginner in the business industry, it is somehow wise to partner up with someone who has enough experience and knowledge how to run a business. One of the most challenging part with partnership, is finding the good and trusted partner. The OP's story is one of the most common thing to happen when the business isn't doing so well, there will always be someone who rush to sell their share before everything complete go south.
 Well, that's the nature of business, sometimes you get lucky sometimes you're not, but it is very vital to have a solid plan. Going all out alone in your first business ever could be a bad idea. Yes, you could learn how to run your own business through different courses, but it is always better when you're hands-on with someone who has experience. When you're ready, that would be the perfect time for you to build your own.