Going Into Business Together: How To Work Business In A Partnership

Going into business solo is difficult for many reasons: lack of capital, lack of infrastructure, lack of specialized skill and/ or knowledge. Therefore, a partner or partners are needed. Working as a team is a skill of its own and needs incredible finesse to succeed, even when the business partners are friends of long standing. There are several different things you must do in order to ensure smooth sailing, particularly if the business isn’t going too well at first. Here are some tips from various industries and partnerships for inglis horse auctions to show how various partnerships can work:

Create Balanced Partnerships in Terms of Contribution

If two people with the exact same skill set come together to create a partnership, one will invariably be redundant. Instead, if you are thinking of partnerships, go for people who have the skills, expertise or capital that you don’t have. Think of the all restaurants in the world that are famous because of the famous chefs that cook there: Heston Blumenthal, Gordon Ramsey, Marco Pierre White and Kwylie Kwong. No one hears of the money behind them but someone financed the early efforts of these now- renowned chefs and backed their restaurants. The trick is to make sure that each person in a partnership contributes in a significant way to the business: the money- man will input capital but not creative vision; that will be provided by another partner; and yet another partner will take care of the business aspects. Together they create business magic – and profit.

Share the Profits Proportionately to Investment

Horse syndicates do this all the time. A thoroughbred racing horse costs a fortune and your Average Joe can’t afford one. So a group of people get together and invest what they can to buy, train and maintain the racehorse (and the accompanying necessities). When and if the horse starts winning and making money, the profits are divided according to the original investment in buying the horse among the members of the bloodstock http://g1xbloodstock.com.au/. This is a logical way of dictating how the profits of a company will be shared among the partners as they are usually the initial investors. This leaves no room for argument, but enough room to re- invest if need be.

Leave the Friendships at the Door

Going into business with friends is risky; there are tough decisions that you have to make day to day that may affect personal ties you have with your partners. Sometimes, personal feelings may cloud judgement that affects the business. Of course, the pros are that you can absolutely trust your friends and that’s a good thing to have in business.

It’s a choice that many people make and navigate but it’s a risky line to take as well. One of the most successful as well as dramatic partnerships we saw on TV was the Tyra Banks and Jay Manuel partnership on “America’s Next Top Model” reality show. Jay Manuel was a former makeup artist for Tyra Banks and was already a close friend when he began work as the creative director of the show’s photo shoots. He worked for 18 cycles in the series but was fired by Banks due to drop in ratings. This is a perfect example of where personal ties helped make magic for the show but didn’t get in the way of business decisions. Nor has it affected the friendship: Manuel claims that Banks is still a friend.