Two heads (or more) are better than one.
In one of the previous blogs we tackled the advantages of engaging in a joint business venture.
As promised, here are some of the reasons why you may want to think it over a second time.
Prepare for disputes
First off, engaging in a partnership without thinking about future disputes is simply impractical. Sure you’ve agreed on every issue there is in the bylaws. But you have to remember that the partnership involves different people so there is always the risk of disputes. In fact, one can claim it is imminent. Quarrels can come from as simple as deciding on where to get the best deals on LED signage. One partner may already have a LED sign dealer in mind, which another may not approve of.
When there is money involved, expect that at some point there will be entities at loggerheads. That is called practical thinking.
Absence of a liability protection
In a joint business venture, a partner is not guaranteed of a liability protection. His responsibility only goes as far as at least his share of the company’s obligation. At any point the company’s assets fail to cover its debts, then every partner will have to shoulder as need be.
Life is limited
As indicated in the partnership’s bylaws, there is only a certain period of time that the venture exists, perhaps until a common goal is satisfied. This should be agreed upon by each partner. Death or withdrawal of any partner may have termination as a result. This, along with other things, should be agreed upon by every partner.
This list should get you to weigh your options clearly as nothing should stop you to become the entrepreneur you are destined to be. Best of luck on your future endeavors!