The human being is a very unique social animal. We know when to join forces and when to walk alone. Joint ideas for good have brought about far reaching changes like the WHO , UNICEF and so many others. On the other hand we had alliances like as occurred during World War II and the Cold War.
Business partnerships have been formed since ages. But many partners start off with great enthusiasm without much planning and few ground rules. Down the line there are conflicts over what each partner expected going into the partnership. Clashes over trivial and major things like work ethics, financial goals, leadership and the role of each person start.
So, how do you avoid all that grief and not only set up but maintain and sustain a business partnership? You can ask yourself a few questions which I discovered after speaking to SL as well from RL business owners.
1. Do I really
need a business partner for succeeding in my venture?
Decide to partner up when you realize the partner brings
something to the table, be it finances, connections or skills that you do not
have on a daily basis. Better would also be to just hire or contract the skills
of the person.
2. Do I know my
partner?
Communication is the mantra.
You must know where you stand and make clear expectations and ideas.
3. Have I had a
test run with the partner?
Test your partnership by taking up a trial run for a small
event or project. You can see is the working style, approach and personality
are suited for each other. Also, you avoid much bad blood.
4. Does the
partner add to my venture?
The partner should bring something new to your venture and
yet at the same time complement your work. You may enjoy customer oriented
marketing while the partner may prefer to be in the background working on
designs.
5. Do I need an
active or silent partner?
A silent partner is one who still shares in
the profits and losses of the business, but who is uninvolved in its
management, and/or whose association with the business is not publicly known;
these partners usually provide capital.
6. Do I trust my
partner ?
Without saying much, that could make or break the
partnership and business.
7. Is the partner a
close friend or family member or most importantly, your spouse?
Consider whether you’re willing to risk hurting your
relationship if the partnership falls apart. It requires maturity to separate
and set boundaries before business spills into personal life.
8. Legalizing the
partnership.
Take this step as much as possible and get a written
agreement/ email with digital signature no matter how personal your
relationship with your partner is.
Be very clear on three crucial areas: compensation, exit
clauses, and roles and responsibilities.
Include who owns what percentage of the business, who is
investing what, where the money is coming from, and how and when partners will
be paid.
Include clauses that spell out cases in which one partner is
obliged to buy out for a prenegotiated percentage of the business’s value, the
other’s interest — for instance, if one wants to quit the business.
Partners can also liquidate and divide all assets. It’s also
a good idea to settle in advance how to assess the total value of the business
upon dissolution.
9.
Setting up terms..
There can be a 50-50 ownership but terms can vary greatly. One
partner might contribute more finances if the other partner can bring in
expertise or business contacts. As the business grows and changes, conditions
change and new contracts need to be drawn up.
Make a routine for daily communication. Set apart designated
times preferably daily and re-evaluate on a regular basis. At longer intervals
set apart time to talk about the direction the business is headed.
10. How will it be
handled if there are disagreements?
Set the basic groundwork for handling of differences. Have a
trusted third party agreed upon by both partners, who can mediate or perhaps
give an opinion on how to handle a conflict.
Advantages of Partnership
- Capital – More
partners there are, the more money they can put into the business. It also
means more potential profit, which will be equally shared between the
partners.
- Flexibility –
- Shared Responsibility – Someone’s there to get your back.
- Decision Making –More
partners means more brains that can be picked for business ideas and for
the solving of problems that the business encounters.
Disadvantages of Partnership
- Disagreements
- Liability – Ordinary
Partnerships are subject to unlimited liability, which means that each of
the partners shares the liability and financial risks of the business.
- Profit Sharing – Partners
share the profits equally. This can lead to inconsistency where one or
more partners aren’t putting a fair share of effort into the running or
management of the business, but still reaping the rewards.
I interviewed an SL related business partnership who owns Lineal
Rise .
Orchids: Who is LinealRise?
Linealrise : Linealrise
is Spanky Shippe (creator Designer) and Joona Toxx (management - she arranges
everything from fashion shows till events and takes the business side of the
store).
Our brands attitude and trademark is
"Don't Mesh With Me"
Orchids: Your opinion as a business owner in SL on the
importance of working together - partners and sponsors
Linealrise
: I believe its very important to
work together, you always learn from each other. I had the luck to know one of
the best designers in second life and she is also a real life friend. She is
Winner of the Avi Choice Award for Favorite Women's Apparel 2011 & 2012.
And so she guided me through this world of plenty. And now I do the same with
other new coming designers/creators. Important is that you find the right
groups, bloggers, and lets not forget Facebook multi media is something that
opens doors.
This world of fashion is huge, to make friends and share and be true to
yourself to everyone - that is what's important.
I think you should be willing to
participate in charities.
If you own a main store spend a few
prims for other designers/creators. Hang a logo with some information about
them.
Find clubs that wants to do an event
with you and sometimes clubs find you. My partner Joona Toxx is very good in
arranging that kinda events. Make it a party invite people do some funny quiz,
talk with your clients.
Learn from each other tell each
other whats new in fashion world, make the contact.
In our store we have some group
gifts and we always get questions from clients and from some fellow designers
and I quote: "Why do you give away such a good product for free?".
The answer is simple, just because it is free, it has to be bad? No on the contrary, what we give away for
free is the same quality as what we have on sale in our store. 
Posts
Buying an existing business is a great way to get a business of your own. You also get an opportunity to improve from the previous owner, make your mark and see how far you can go.
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