{"id":326,"date":"2018-03-24T02:37:23","date_gmt":"2018-03-24T06:37:23","guid":{"rendered":"https:\/\/www.saudercpa.com\/blog\/?p=326"},"modified":"2018-03-24T08:12:13","modified_gmt":"2018-03-24T12:12:13","slug":"business-partnerships-segment-i-of-3","status":"publish","type":"post","link":"https:\/\/www.saudercpa.com\/blog\/2018\/03\/24\/business-partnerships-segment-i-of-3\/","title":{"rendered":"Business Partnerships: Segment I of III"},"content":{"rendered":"

Preface: Partnerships require vision, collaboration, trust, risk and effort. These business pillars\u00a0lead to a long and\u00a0strategic business relationship, e.g. a\u00a0successful partnership.<\/em><\/p>\n

Business Partnerships<\/strong><\/span><\/em><\/h3>\n

Credit: Donald J. Sauder, CPA, CVA<\/em><\/p>\n

Business partnerships are alike to a chorus; a key conductor is always required. Secondly, someone must study the scores. Thirdly, scheduling, auditions, and promotion of the concert(s) are par for the course. It requires a vision, planning, effort and energy. And the more experienced the conductor, the more pleasant it is for everyone \u2013 the choir and audience.<\/p>\n

The probabilities of succeeding in business with a business partner are much greater, than the probabilities of succeeding without one. Yet, business partnerships may appear from a distance to be a easier and effortless climb to the pinnacle of entrepreneurial success. At the start, all you think about is the scenery from the top. Increasingly, studies show that the most successful companies are partnerships with more than one owner. In fact, supposedly less than 10% of today\u2019s top performing entrepreneurial ventures are sole proprietorships. That says more than 90% of top companies have multiple owners, e.g. they are partnerships.<\/p>\n

Knowing beforehand what a partnership venture involves can be helpful. Before entering any partnership agreement, you need to ask yourself \u201cWhy should I be partner?\u201d You\u2019ll need to share more than profits. You\u2019ll need to share more than decisions. You\u2019ll need to share emotions, risks, and the work. A partnership is like a business marriage \u2013 sometimes too easy to get into. So, if you\u2019re planning a business and thinking about entering a business partnership, or you are working in business and can be an owner, being forewarned is being forearmed.<\/p>\n

Are there better options than a true partnership? Often partnership provide opportunities that are not available as a sole proprietor, i.e. walking the path alone while developing a business venture. Collaboration has substantial, proven benefits with in strategy formation, specific delegation of performance in tasks, project and administrative responsibilities, and unique resource allocation, e.g. one partner provides the resources, i.e. property, or capital, and another partner the time or expertise to leverage those resources.<\/p>\n

Partners share decisions and burdens, and strengths and weaknesses. The personal values of partners are most crucial to a business partnership. If your personal values do not align with your business partner, you\u2019d be advised to be cautious. Partner conflict and disagreements are inevitable; even with success after success, you need common ground with similar values to succeed. If your personal values clash with your other partners, the business marriage will become too stressful to support sustained and successful collaboration.<\/p>\n

Proper planning before entering partnership, even if it is with a family member, is advised. Talking with an experienced advisor who can guide and assess with your partnership decision cannot be over emphasized as prudent to appropriate partnership due diligence. You need to count the cost, assess risks – value conflict, or neglected agreements of sharing responsibility. Don\u2019t enter a partnership blissfully. Be prepared for the risks and responsibility beforehand, and the potential conflicts that can arise.<\/p>\n

It pays to invest in your business partnership early with a \u201chot seat\u201d questions session. The more strategic your business, the more invaluable that planning. Just don\u2019t get stuck in the planning process; you ultimately need to implement effectively. \u201cWe would estimate, very roughly, that a master has spent perhaps 10,000 to 50,000 hours staring at chess positions.\u201d<\/em> Outliers: Herbert Simon and William Chase<\/a>.<\/p>\n

\u00a0<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Preface: Partnerships require vision, collaboration, trust, risk and effort. These business pillars\u00a0lead to a long and\u00a0strategic business relationship, e.g. a\u00a0successful partnership. Business Partnerships Credit: Donald J. Sauder, CPA, CVA Business partnerships are alike to a chorus; a key conductor is always required. Secondly, someone must study the scores. Thirdly, scheduling, auditions, and promotion of the … Continue reading “Business Partnerships: Segment I of III”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/www.saudercpa.com\/blog\/wp-json\/wp\/v2\/posts\/326"}],"collection":[{"href":"https:\/\/www.saudercpa.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.saudercpa.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.saudercpa.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.saudercpa.com\/blog\/wp-json\/wp\/v2\/comments?post=326"}],"version-history":[{"count":6,"href":"https:\/\/www.saudercpa.com\/blog\/wp-json\/wp\/v2\/posts\/326\/revisions"}],"predecessor-version":[{"id":336,"href":"https:\/\/www.saudercpa.com\/blog\/wp-json\/wp\/v2\/posts\/326\/revisions\/336"}],"wp:attachment":[{"href":"https:\/\/www.saudercpa.com\/blog\/wp-json\/wp\/v2\/media?parent=326"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.saudercpa.com\/blog\/wp-json\/wp\/v2\/categories?post=326"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.saudercpa.com\/blog\/wp-json\/wp\/v2\/tags?post=326"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}