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Partnerships are a form of business ownerships that are common over the world. There are 3 main types of ownerships; sole proprietor, partnership and Limited Liability companies. Ownership structures are usually decided through main considerations of liability and control. However, this entry will focus mainly on the main features and advantages of partnership.A partnership is an agreement between two or more people to finance and operate a business[i].
There are loads of preparation works to be done to formalise a partnership agreement, but before an agreement is drafted, these are a list of considerations I felt that is imperative to the success of the partnership.
These are some important issues to resolve before signing an agreement and of course, more considerations can be added into my list but the gist of protecting yourself from unexpected non-business issues shouldn’t be taken for granted with statements like ‘I trust my partner, he will not bail on me’ or ‘I will know what to do when it happens’. (Still, successful partnership firms include Google, Procter and Gamble and Apple will prove that partnerships have their merits.)
Back to the main topic of advantages of partnerships, it is still true that two brains are better than one. Leveraging on each other’s weaknesses and building strengths together are better than starting up a business on your own. Similarly, financial strengths, borrowing limits or even resource management becomes easier with two or more people at the reins.
Right now at Scientific Tradition, we are actively looking for partners who are able to bring our product range to other parts of the world. Finding a partner that fits to the above is not easy but we are still trying. Do drop me a note if you are interested to be one of us.
Chief Marketing Officer
Scientific Tradition Pte Ltd