One way to expand your business is by looking for a partner. Suppose you do not have enough resources to grow your business, and you know that it is the right time to do the next step with your business. In that case, you need to find someone who does not only have the financial means but also can see the same vision.
As I would always say, never miss an opportunity once it knocks on your door. It is not every day that you are offered this kind of opportunity. Would you just let it go? Although you may be able to work things out with your business eventually, if the time is now, GO FOR IT!
There are single proprietorship businesses that have become successful. And that was the start of the most successful corporate companies today. I do believe that every entrepreneur needs to learn about taking risks calculated risks. If not, then everything that he has started would just become worthless.
What does partnership mean?
A partnership is a business with several owners who share in running the business. Of course, they also share in the profits and possible losses. When you have decided to start a partnership, make decisions that would benefit the business in the long term, not just look through it on its current situation. Keep in mind that as the year progresses, the structure of your partnership might also change. You need to think about which kind of people to get as partners, what will happen if the association becomes successful, if the league does not work out, etc.
What to look for in a business partner?
Seeing your friend as a prospective partner may be your initial thought. However, I advise keeping your friends as just your friends rather than business partners. Why? Because being in a business, there would always come to disagreements on how to handle the company. Sometimes, it gets too personal that the friendship of so many years gets dampened.
If you want to make a mark in the industry, choose wisely. Don’t be in a rush. You need to find the right person to help boost the business more than give you the amount you need. Choosing the right business partner is crucial. It is some kind of a “make or break” situation. Here are the qualities that you need to find as your business partner.
1. The most important thing in finding a business partner is someone who shares the same passion as you have. Therefore, they need to give their total commitment to the business.
2. You need to find someone that you can rely on. The one that you can trust. You must be able to know your partner’s work ethic. Otherwise, just randomly choosing anyone you think is available may just lead your business to nowhere.
3. It may be helpful to find someone who has knowledge of finances, the one who knows how to manage money and has no records of any financial trouble in the past.
4. Find a partner that has creative/innovative skills. You would definitely need someone who can help you create a distinct image for your brand – someone who can consistently generate original and fresh ideas.
5. You need a You would surely want to make your business stand out. A partner who has an open mind- someone who can look at things from different perspectives and recognize other possibilities. If the person would only stick to what he thinks is right and fail to listen to the suggestions of others, then it would be challenging to retain the partnership.
How can you persuade someone to become your business partner?
You cannot just pick out someone to be your business partner without knowing the kind of person he is or being able to lay on the table what you are offering him. You need to convince him to “sign up” and see that the partnership is something he won’t regret doing.
1. Let the person know the profit potential of your business. Layout all the numbers and explain how the partnership can lead the company to the next level.
2. The numbers are very significant, indeed. However, your prospect should also be aware that there is genuinely a high demand for the product/service that you offer. Show reports, statistics, and other relevant news regarding this.
3. Layout your marketing plan, Include projections from various mediums so that the person has a clear understanding of how you want to work things out with your business.
4. Let the person know who you are- how deep your commitment to the business, the skills you have, and the achievement you have made. Your prospective partner should see the kind of person he is dealing with.
5. Provide an outline of how the business functions. You need to inform your prospective partner about how your business works, from procuring the products to how the customers are taken care of.
6. Based on the numbers you have laid out, develop a monthly budget for your first year in business and annual budgets for the next two years. Remember to include precisely how and when the investor will be paid. You need to agree on how much the investor will receive and when he should expect to be paid.
Once you have made it all clear to your prospective investor, then you are on your way to expanding your business. Make sure that the numbers you have stated are based on facts and not asking too much; you may get yourself in trouble if your projections turn out wrong.
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You may contact Armando “Butz” Bartolome for questions and more information.
By email: aob@gmb.ph
FB Page: Armando Bartolome
Linkedin: https://www.linkedin.com/in/franguru/
Website: https://www.gmb.ph
