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    1 Reply Latest reply on Aug 15, 2012 1:52 PM by Moderator Ilona

    Partnership

    LUCKIEST Guide

      Partnership  A recipe for disaster.

      On too many occasions, I have seen the same issue come across my attention. It is always the same story of two close, childhood friends who decide to make their dreams come true of starting a business together where everything including ownership and decision-making gets split 50-50.

      Business partners believe that equal shares are the simplest way to go about things.  They opt for this in attempts to avoid discussions and problems early on and believe it is the fairest possible way to approach matters.  However, this is rarely the case.   Many people fail to see the potential negative ramifications that can stem from a 50-50 partnership.  Business partners are incapable of agreeing on everything, and this quickly becomes apparent even if your business partner is a close friend.  

      For this reason, it is imperative that -as business partners- you come up with a sophisticated method or management structure early in the business, in order to solve conflicts in a reasonable manner when they inevitably arise.

       

      Also consult YOUR lawyer