I would not consider taking part in a partnership business, especially if the partnership is with a friend/partner/family member, since the stresses of starting and maintaining a business could possibly erode the relationship. That is a risk that is not worth taking for me. Even if both partners share the same vision and are compatible as business partners, it is important to understand that people do change, especially when monetary gains are involved. Although there may be less of a financial burden in partnerships, there is an increase in interpersonal relationship stresses, so decreasing one stressful aspect may actually be increasing another aspect of business partnerships. I would rather have sole proprietorship and hire more workers to share the workload, or borrow money in the case of low finances, than be in a partnership. Running a business is a stressful task, but I think running a business with a partner can exacerbate the stresses more often than not. Lastly, the partner would also have the power to bind contracts (even when you both disagree), and lawsuits can target you even if the fault was the partner's. I think the disadvantages and possible bitterness of partnerships outweigh the advantages it brings.
In all honesty, I do not know if I would ever enter into a partnership. At this point in my life, I have no interest in organizing that level of responsibility and communication.
That being said, if I were to enter a partnership I would prefer it to be with someone I have a detailed and good history with. Partnerships depend on the people who make up the partnership, and working with someone who either doesn't trust me or know me well and vice versa could be really disastrous.
I would also want to work with someone who complements my skillset. If we both have the same exact set of skills and knowledge then there really isn't a huge point in teaming up together. If we complement each other in our work and knowledge, then it seems appropriate to form a partnership.
that depends, do I know the person I am going to have this partnership with? there are plenty of failed partnerships where one could lose everything they invested and the other partner would remain unaffected. Having a partner ideally would drive the business to success when you combine power and share risks and profits, however, the most common outcome in this scenario is having one of the partners tab the other in the back, disagreement on how the business is being run and different mentality in managing projects and people which would lead to a failed partnership and unsuccessful overall business
I would consider doing a partnership. Having someone with the same vision and passion for the dream we want to achieve. It is a great adventure to start the life with, but i don think i will consider it as i grow older because of all the risk it has. The partner must be " the same as me but different" like a magnet poles, having the same heart and passion with different skills to complete each other. Trust between partners is one of the most important things and to think about themselves as one. So I see it as it all goes around ( Having A Good partnership depends on having a good relationship ) .
I would choose a sole proprietorship unless I knew my partner very well. Even then I feel like you never really know a person until money is involved. In a sole proprietorship I would be able to make all the executive decisions and make full profit. However, I would also be fully liable for everything. I do think that having a partnership with someone who is more experienced could be valuable. Ideally my partner would complement my weaknesses/strengths and vice versa. I definitely see the value in having a partnership.
If presented the opportunity in the future, I would be open to considering taking part in a partnership. In terms of characteristics of the partner, it must be someone I know and trust very well. As of right now, I would only have that level of trust in my immediate family and of one of my closest friends. In the future, if the opportunity were to arise, I would also ensure that myself and the partner that I am trying to involve is passionate about the cause or what we would be doing. The partner must be organized and financially responsible as well. Finally, as a last resort, I would also try to create some sort of agreement or contract between the partners before any formal partnership is made just to attempt to amend any situations or problems that may arise in the future. Once again, I would be open to a partnership in the future, if presented with the opportunity, but I would look very carefully before selecting, or joining, a partner.
Choosing the correct partner is certainly a great risk when starting a company. Having a partner instead of a sole proprietorship can reduce liability, but divides the ownership between the partners. I would definitely consider doing a partnership in the future. Some qualities I would look for are good work ethic, experience, reliability, and motivation.
It is important to note that in an LLP the ownership of the business is divided by the amount the partners invest. So if someone is really concerned about a partner having too much control of the company, they may consider being the primary investor. It is also important that an LLP is not limited to just one partner. Having partners could divide the responsibility of owning the business, as well as providing different viewpoints and strategies.
I, personally, don't see myself getting involved in a partnership or starting a business in general. Although there is less risk financially and there is a larger system of support, people will always butt heads and internal conflict is a fast way to destroy a business. Its tough because you wouldn't want to work with a close friend since conflict is inevitable but, in my experience, people with similar personalities don't get along. The only thing that keeps the business going is the common interest of the business itself.
Yes, I will consider having a partner. Having a partner can be a great thing. Therefore, you must consider what you're will to trade off. It is very important to have it all. Having a partner also spreads the risk. One risk that I was happy to spread was not needing to be the responsible leader. I could take vacation and not need to answer the phone.
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 love to do a partnership! I think it allows you to see things from a different perspective and gain more knowledge along the way. Comparing ideas and creating new ones can only benefit you. But this is only if you pick the right partner because a lot of times it can backfire. I would say keep an emergency stash to cover yourself but I think a partnership is a good idea. Characteristics I prefer in a partner include understanding, honest, reliability, hardworking, and trustworthiness.
Establishing a partnership with a business partner can have many advantages; owners having complete control, keeping all the profits, splitting the profits by ownership percentage, few legal restrictions and, uncomplicated taxes are a few. However, there are many disadvantages when establishing a partnership, most notably the partnership dissolving when one partner dies eliminating the possibility of leaving a legacy and also the drawback of one partner can bind. This would be my preferred type of corporation to be apart of, both partners would have to have unbending trust in one another. Some key qualities I think should be present in individuals looking to start a partnership would be trust, integrity, ambition, level headed, financially savvy, and understanding.
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?
Personally, I would not want to work in a partnership or sole proprietorship in the future. This is mainly due to the risk that is associated with either of those. In both, you would be putting your entire personal funds at risk. In a partnership, you are signing yourself up to be financially tied to another person. This is a very risky decision, especially if you have a husband/wife and family because you are potentially putting them/their futures at risk.
I am very risk averse, so working for a stable company is a better option for me. I think characteristics for someone to enter a sole proprietorship or partnership would have to be someone very eager and committed to making things work and not being afraid of failure.
Does anyone share any similar opinions to this as me?
Personally, I am not someone who is looking to start a big business, so I would most likely prefer a sole proprietorship if I'm thinking small-scale. However, if I was really looking to start one, I would definitely go into a partnership, but not with someone I know too well. For instance, I'm sure I am not the only that's dreamed of starting a business with their best friend(s) or significant other. The person could be incredibly trustworthy during the insemination of the partnership, but something can happen later down the line that can affect the both of you and affect your relationship. This may translate into bad business practices which can eventually lead to the downfall of your company and put you at a greater loss.
Considering I am already interested in the engineering field but not too savvy on business, I would definitely want a trustworthy partner with some experience that helps supplement that knowledge. However, I would never reach out to close friends or family even if one of them is business savvy in the event that personal relationships may get in the way of the advancement of the company. This isn't to say that you shouldn't be friendly or close with the person(s) you're starting a livelihood with, but at the end of the day, business is business.
I would consider a partnership in the future over a sole proprietorship and I think a partnership can be a great type of business to have for many reasons. I would want to work with a partner that has similar objectives, goals, and motivations as me. Although there will always be a chance for conflict between partners, if the partner is someone who I trust and know will always have the best interest of the business in mind. Having a partner could not only decrease the risk and losses for each individual since the risk is shared amongst the owners, but it also can allow for more input based on the different ideas and experiences that the owners have. As I mentioned, I think a partnership is a great way to go about starting a business, but it is extremely important that the partners are on the same page, fully trust one another, and work together well in order to mitigate any issues that are inevitable during the process.
The decision to form a partnership has several benefits. Partnerships are often simpler to establish, have shared risks and duties, and have less legal obligations. Access to more information, abilities, experiences, and networks are also advantages of the partnership. When all of these factors are taken into account, the corporation may make better business decisions. When selecting a business partner, it's essential to choose someone who shares your values, entrepreneurial energy, and corporate goals. The organization should benefit from the talents, expertise, resources, and credibility that your business partner may offer.
