Partnership Risks

Many businessmen, including some of my close friends, prefer long term partnership than profitability factors. This is not something that is entirely wrong indeed. Sharing the responsibilities and profit in a same portion is another smart way to prevent the business getting caught in unpredictable risks of market. Partnership is safer in some ways of course. But despite of all it's goods, partnership is also something that can stab your business from the back and drag it all the way to it's grave.

The risk of partnership mainly caused by the wrong decision of choosing the partner of course. Combining 2 parties means combining 2 different ideals and thoughts, which in some ways considered 'not combinable', and it is almost as dangerous as marriage. A business based on partnership is like a rope pulled to two different ways. If the other party wins his way, most probably they will take the business their way instead of taking it to the way that will profit both parties.

Sometimes there are problems in the system too. The responsibilities that have been shared accordingly to the pre-agreement, usually found not actually shared fairly in profit. Along the way, one party might realize that the sharing will only advantage the other party while as well bring more responsibilities and less profit to themselves. With this kind of issue, the business system will oftenly needed to be change and surely it will influence the stability of the business itself. Problems will also be occurred when one party has lack transparency to the other. Communication break down like this will not only break the combination back into two parts, most likely it will cost both parties the break down of the business. If you have any plan to put your business into a partnership, think wise before you launch the decision.