In my personal opinion, partnerships and sole proprietorship are very similar but with lower risk when investing due to the split of initial costs for partnerships. Partnership sounds amazing for whenever two people share the same objectives and are willing to work hard in order to achieve it. Even though you run less risk from a financial point of view, there is still a lot of risk when choosing the correct partner. Would you consider doing a partnership in the future? If so, what characteristics would you prefer for your partner?
I would not prefer getting into a partnership because even when the ideologies are the same, the execution will always be different. Being in a partnership does offer low risk and support but views do change from time to time and getting to a conclusion only gets difficult in the future. Everyone works at a different pace and both the partners must be in-sync to run a successful organization.
You're definitely right about the financial burden being less in partnerships as oppose to sole proprietorship. Also, you are right about the great risk in choosing the right partner. I think that entering a partnership is something that will only work with someone who you fully trust. Someone who is really close to you where you both share the same ideology and vision for the business venture. Because, we truly don't know a person until something bad or unexpected had actually happened. This will be the only time we'll be able to fully see someone's character and whether it'll be a match or not is another problem to think about. So, I think that considering a partnership is really risky if you don't start with the right partner.
I would prefer considering Partnership in future. Partner should share a common goal and should agree the hoped-for outcomes, impacts and business for their partnership as a whole. Partners should recognise and accept that each partner organization has the right to accept benefits specific to them. The partners should ensure that specific goals are acceptable to the other. The partnership as a whole will benefit from each individual partner organisation seeing tangible value-added to their organisational goals and priorities. It is therefore in the interests of each partner to be aware of and to contribute to individual partner goals – wherever possible.
Joining a partnership is very intimidating based on it is truly impossible to fully know someone until possibly when it is too late. When looking for a partner above all I think the most important thing to me would have to be honesty. Like relationship to a boyfriend or girlfriend if there is no trust the bond will break. Sadly, when it comes to a business a break up could mean the total loss of someone’s life work. I personally would rather have an LLP where if the partnership fails one partner can sell and leave the partnership easily.
Partnership is good from business point of view only when its a small scale business or when you have enough finances available in combination with your partner for your small business but when it comes to making business decision I would consider tell that risk factor would be the highest since their would be time when the partners don't agree or time when there views about the company contradict. Even in partnership the most important thing on which business run is trust since even if one partner binds than other partner is also bound to it and a sudden accidental death of any one partner would means end of company. So I would suggest this only for small scale business where self finance is not possible or else I would prefer self finance.
I prefer to getting into a partnership with someone who understands the objective and gives valuable insights into how to grow the business big. A partnership is a major commitment and risk associated would have a dent on your personal savings. If a person is fully committed to the views and objectives of what the other person shares, then its a better option than running a business as a sole proprietorship. No doubt the will be disagreement among them, but that's how you think out of the box and brainstorm to get better ideas. Also, its easier to get loans when the company is run by two or more partners.
I would prefer sole proprietorship over partnership in future. In the beginning partners would have agreed upon to the same ideas and goals, but in the future it mght not remain the same. The way the partners execute their common goals might differ. Drawing conclusions inthe near future might become difficult. The way the partners work would differ and it may not be satisfying to the orther partner. Hence i would orefer sole proprietorship in future where only i will be responsible for my companys/organizations success.
Even though having a partnership has a lot of risks from a financial point of view, I believe I would still have a partnership in the future. With a partnership, I would not be the only one handling the logistics of the company. I would have someone else to give me other point of views in decision making opportunities. Even though there is a risk that both the owners would have to handle, working with others is required when working at any other place. With this partnership, there are other people who can be hired to lighten the load and I believe that if my partner and I were to keep an open mind and work together for any issues that arise, the partnership would run smoother. I would want a partner that is goal oriented and knows how to keep business related topics separate from personal issues as well. I would need someone who I can fully trust and knows how much work is required to run a business. I would want to make sure there is written contract that will help to keep me and my partner to stay on track on what the business is about. My partner and I would have to make sure to find a compromise when issues also arise. With a partnership, there are less legal restrictions, it is a lot easier to run, and the business would be in our control.
Partnership have some advantages over sole proprietorship as funds can be used by two or more owners and business will be benefit from the complementary skills of other partner but there is also chances of disagreement among partners so time should be invested in developing the trust among members for partnership agreement. In partnership both partners should have same level of passion for the business. For a successful partnership members should have sense of support and optimism about their partnership. There should be reward for achievement and competition which would helps members to prove their skills. Good business partner should be good communicator and have good knowledge of current issue and future market trends in which one works
Both Partnership and Sole proprietorship has advantages and disadvantages, but I think Partnership is an advantage for a business over the sole proprietorship since there are two or more number is people who are the owners. The risk is distributed among the partners. Partnership give wider range of expertise for different parts of the business. The partners bring more cash into the business. Having business partner share the financial burden of expenses. Partners should have the same goals for the business. There should be mutual contribution in terms of money, there should be mutual interest to achieve the goal of the business. The partners should share the profit and loss amongst the partners.
True Partnership Entity is low risk but according me the characteristics needed are:- Supportiveness: should support in good and bad phase. Gratifying: Satisfaction from each others work is important. Moral Boost: While starting a new company you might get disappointments and setbacks but should maintain high moral even in that case for good relation. YOu should n ever have trust issues as it would break relationship as well as business.
In future, I would consider partnership especially if I want to do a big business. I believe that most of successful business that we see today are partnership. To have multiple people's ideas is better than sole proprietorship. So, personally I would considered it in my future. Moreover, the characteristics that I would prefer for my partner is to be a hard worker, focused, has experience in his field. I would look for someone who is optimistic and someone that I can put my trust in. Someone who will not complain about the workload and to be on top of everything. I need my partner's mind to be in that business and someone with good communication with employee and has a sense of support for our business. Also, I believe that knowledge is a big thing to consider in partnership and for the success of business. We need our partner to be someone who knows what he is doing exactly and to plane for every step a head together.
I agree working in a partnership would not be preferred. I say this because you will not always agree with your partner this can cause the partnership to go down hill at any moment. All this risk is taken on by the owners especially because funds come from their personal funds. Debtors can go after the owners personal money and lawsuits can go after them as well. This just shows that owners are risking a lot going into a partnership. Also it is really hard to continue once a partner dies and it is hard to ditch a partner. So whoever you start with you end with. I do not believe that a partnership would be the best way to start a corporation. You would be putting too much at risk.
I would consider working in a partnership if I were to open such a business because even though you profits will be shared, your losses will be shared as well. The business is most likely going to survive if the losses were socialize because one owner may not be able to continue his/her business if the losses are too great. The key is finding the right partner to work with. He/she has to be committed and willing to endure the hardships and successes and finding that person can be very hard to do. However, if you wish to grow your business or create a big company, then more people will be required to deal with the increasing complexity of the business. I would initially start my business as a a sole owner so that I can familiarize myself with all aspects of the business. This way, I would be able to counter any difficulties and would gain experience. After a while, I would consider bringing in a partner but only if the business is doing well or performing as expected. It's good to have someone who can share the work so that it does not become overwhelming but the best thing to do is to start the business alone and then find that person. The way to minimize risk is to do essentially strict vetting of potential partners and have high standards in picking that person. Your business means a lot to you; therefore, it's in your best interest to have high standards and to pick the best person. Also, picking a partner is supposed to give you an advantage. Finding the right partner may be hard, but it's not impossible since many big companies have partnerships.