Managing Business Risks, Dealing With Partners

Although there are several less complicated and less painful ways for conducting business, partnerships are often a business form of choice. And though legally easy to establish, they often prove very complex from a relationships and even a business perspective.

Though I have known partnerships to work well, more often than not, they fall apart, destroying lives and businesses. One of the main reasons for this specifically are that partnerships are usually established when things are going well. You and your friend decide to start a business together. And based on mutually agreeable objectives and approaches at that time, things go well.

Unfortunately since things usually go well at the onset, people tend to not take the very necessary precaution of drafting a “breakup” agreement properly. The end result is that when things do not go as well, there is no clearly defined approach or agreement in place that will govern the process for resolution and dissolution of the business. Court often battles ensue and businesses and lives are destroyed, often beyond recovery.

If you find you must pursue a business of this nature I would suggest that you explore and consider at least the following important points:

1. Attempt to register a limited liability version of this business form if the country you live in permits this. It will prevent you from becoming liable for your partner’s stupidity.

2. Maintain control if at all possible. If you are able to maintain a controlling interest in the business (more than 50%) this will without a doubt be hugely helpful when you want to make decisions that your partners may not agree with. Equal partnerships often run into irresolvable differences, and so the partners and the business will suffer. If a larger equity option is not available make sure to entrench a veto right.

3. Maintain control over the money, even if a shared control. Since the business is primarily about money, losing control over the money means you lose control over the business. As such if you are able to, make sure that your signature (as a minimum) is required for any business expenses, commitments and contracts that are closed on behalf of the business, by any partner and under any circumstances.

4. Draft and sign a proper partnership agreement which will not only define investment, duties and responsibilities, but will also define the division of business assets in the event of things not working out.

In conclusion, if this is at all possible I would urge you to consider another business alternative. The potential exposure to you personally and professionally will often prove significant, and not worth the risk, even if it is your best friend.

I wish you all the best with your ventures and invite you to share your stories and comments here.


Tips For Starting An Effective Home-Based Business

The choice to begin a home business shouldn’t be ignored. In such an unsatisfactory overall economy, it can be advantageous to generate your very own work, but this even creates a higher opportunity of failure. Don’t begin something you raced into doing! Take your time and understand exactly the ways to start an at-home business that prospers. The suggestions below will assist you in your endeavors.

After making the initial decision to start your own at-home business, you need to consider what kind of business you should begin. There are lots of choices offered to you; however you should be sure that the one you choose is profitable also. Produce a listing of businesses you are considering and their pros and cons. The Internet is a wonderful place to start, specifically with so many websites and providers online. It can assist you in getting a scope of points and how well each kind of business does.

After making your preliminary list, think about precisely how much you appreciate doing the things you have actually specified. It can be very easy to get caught up in reason of profiting and totally forgetting that just what you are choosing is a lifestyle choice too. Because this will definitely be a home-based business, you should find a little something you profoundly appreciate and not something you are just okay with.

Revenue is necessary to your business. Meanwhile, there are a lot of niches that you can take pleasure in doing, a few of which that will not turn a good revenue. Remember, it is imperative that you contrast the items on your home business concept list and highlight the ones that you enjoy doing and the ones that you have actually researched turning a good revenue.

As discussed before, this will definitely be your home business, which means that you will certainly have to dedicate space to the business itself. This is much easier said than done, specifically if you have a smaller home or you stay in an apartment. Take into consideration the work you will certainly be doing and the components it asks for. For example, if you have decided to begin offering used apparel, it is smart to dedicate an area where you may save these items, a desk for your evaluation, and packing too. You can turn your living room area into a tiny workspace if you don’t have another room you can easily commit to these tasks.

Establish a product schedule for yourself and include any loved ones who wants to do it as well. If you have little ones to pick up from school or sports practice, ensure that you create a schedule that allows you to do this. It is recommended to not make a timetable that is airtight in case you get sick or have unforeseen business to take care of. Don’t be a servant of your own business either. Leave breathers for yourself and holiday vacation days off.

Help can easily be around the corner if you allow your family to assist you with your business. If you have a great deal of online selling to do, your family can assist you in taking images, producing listing descriptions, and packaging items that have been sold. Additional kinds of companies can make use of someone to answer telephone calls, print leaflets, and assist in spreading the word about your business.

You can easily begin your business in the appropriate manner by following what you have learned above. As a home entrepreneur, you will definitely be faced with lots of issues in your first few months; however, it is necessary that you do not give up. Plan out your business well and have a great objective statement, as this will definitely allow you to be successful.