How To Choose A Small Business Enterprise Partner

الأحد، 24 سبتمبر 2017

By Roger Brown


Many people think it's a bad idea to go into venture with a co-owner because you have to split the ownership and profits. However, having a venture companion can increase your profits and overall venture success. Many of the most successful companies were based on a co-ownership. Having a small business enterprise partner can substantially increase the overall success of your venture because a co-owner can offer their connections, expertise, and skills the venture needs in becoming successful.

Look for a companion who shares your passion, vision, and excitement: You want to choose a co-owner who shares your vision, believes in what you are trying to accomplish, and is as excited about the idea as you are. You have to understand this is the person you will be spending and living a lot of time together with. In developing the venture you and your co-owner are bound to face many stressful challenges as well as successes.

That's why brothers and sisters, husbands and wives, and fathers and sons are the co-owners of some commercial enterprises. Companies ranging from shops to factories to multinationals are owned by a family. Even in large public enterprises, the major stockholders are members of a single family. Certain co-owners are 'sleeping co-owners, ' which means that they invest in a firm and get a fixed income from their investment or share of the profits. They have no say in the running and managing of the venture.

Today the venture world is witnessing a radical change from traditional venture co-owners who were mostly family or friends. The internet is largely responsible for heralding in this change. Nowadays venture co-owners are referred to more as commercial enterprises joining together to expand their venture objectives. A classic example of this type of venture co-owner venture can be found when Dell agreed with Intel to only install their processors on their computers.

However, co-ownership also presents its own bottlenecks. To put it crudely, you may not get along. Having a co-owner can be like some marriages; you may not be a match made in heaven. Suppose if you find a co-owner who is dishonest and devious. Money comes in, but too much goes out, into your co-owner's pocket without you being aware of it!

Define and allocate responsibilities: In creating a co-ownership it is important to assign roles and responsibilities for each co-owner, whether that is VP of engineering, marketing and sales or operations. It is best you do what you know best, and let the co-owners do what they know best, give each companion the freedom to improvise, as they will perform better when you respect them for knowing what works and what doesn't.

Write a legal co-ownership Agreement: In choosing a companion co-owner you will need a legal agreement, stating the responsibilities, the financial obligations, how expenses and profits are distributed, what are the terms and conditions in the event the companion decides to leave the co-ownership, and how will the issues of breach of contract or disputes be resolved.

Look for a companion that does not come with baggage: A companion, who is dependable, will be able to dedicate tremendous commitment and energy to the venture. You can't afford to have a co-owner who has a lot of personal issues or problems, as this will interfere with the ability for the firm to grow.




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