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SpinDistribute.com Article Directory

The following article was published in our article directory on October 28, 2013.
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6 Business Partnership Issues to Avoid

Article Category: Advice

Author Name: Sara Malone

Whenever you go into business with someone new there�s could definitely be some partnership issues that pop up from here and there. Some of them are easy to overcome these problems, while there are some you will just want to avoid all together. Here are some business partnership issues that you should try not to encounter.

Sharing Profits

When you share any type of revenue such as information, resources or money you give away your business ability. The world isn�t perfect and you don�t want your partner to take off with this information. Don�t assume your partner has integrity and wouldn't take advantage of you. Be sure you work out an arrangement where you have an "associative" arrangement so the expenses are shared. This makes it easier to walk away if you have problems with your company.

Don't just partner because of money being tight

Don�t hire anyone you can�t afford to pay as a partner and share expenses, duties and profits. You�ll just end up working against each other which won�t be good for your business. If you need someone that has the skills you want then you just need to hire them as a contractor to get the job done. Don�t give away your business when you don�t really have to.

Have A Contract for your Partnership Agreement

Be sure you get everything in writing as you need to define the obligations and details of the partnership. Make sure you both have a lawyer you can agree on and get everything in writing. Make sure your lawyer knows about business partnerships. This is a safeguard in case something goes wrong for the both of you.

Exit Plan

One of the business issues you want to look at is to have an exit strategy. Be sure you have defined the terms of your exit strategy so either you or the partner can walk away from the partnership or you can buy out the other partner.

A Friendship After the Partnership Dissolves

Another one of the business issues you need to expect is that your friendship with your partner will probably not last once the business is broken up. While this might happen, its probably not the case. Just remember it�s easier to do business with people who are not your friends as you have to put business first.

Splitting the company

It�s better to have a split of 70/30 or 60/40 then to try and have everything equal. Someone has to be in charge of the business. You can�t both be equal in your business as this just won�t work. You want a partner not another boss and you can�t split everything equal. Make sure the exit strategy is in your favor so it benefits when you want to go into business again.

Follow these 6 business tips and you will be better able to work through your business issues and avoid common problems between you and your business partner. It will take the both of you to make it work so work through issues before they become a problem.

Keywords: goal setting, business news, business tips, business development, perfect business, business goals

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