Someone sent a message to my inbox yesterday asking if it’s good to go into partnerships with friends and build a business. I felt I should give my views publicly and the answer is yes, BUT…
One thing we have to understand is that there is power in unity. When people come together, they can do almost everything they fail to do on their own. When people come together it means they have brought resources, skills and energy together and at the same, they will absorb and share losses as one.
The problem with partnerships that we do is that they are formed prematurely. We go into partnerships without any legal backing and without setting a clear agenda of what you want to do, how you want to do it and what happens when you either fail or make it.
Better partnerships are set on clear and similar values. Don’t get into partnerships with people who do not value you or what you can do together. If your partner feels too superior at the start, walk off such an agreement and seek a partner(s) who will value you and share similar values. A partnership is like mariage. Achewa timati “awili sayenda limodzi asanapangane.” You need to know people before getting cozy with them.
On top of values, it is good to set clear expectations from the start. Everyone needs to know what is expected of them and how much or what exactly they are putting into a partnership. At this point, it is also important to know what type of partnership you will have in terms of business registration.
Then there is the hardest part, finances. Clearly set out who will manage finances, how much each one will bring in and how you will share profits when you make. Are you going to be on salary or you will keep reinvesting? Those are the things to consider and above all, how you will disband when you reach your investment and decide to part ways.
Lastly, have a lawyer draw up your legal partnership. This is the most important aspect. Unfortunately, most people miss this and decide just to get into partnerships without having legal backing to protect both partners. Even in marriage, you need a certificate to certify your union, what more of a business agreement?
But partnerships are very good. I am actually looking for suitable partners myself. You can have K10 million and if you are the only one with it, it remains K10 million but if 10 people have it and come together, it becomes K100 million and offers you a possibility of doing something bigger.
Bonus point: Don’t go into business partnerships with your relatives. And, do not team up with people who are impatient, depending on the same business to survive.
9 thoughts on “Business partnerships are like marriages; they can fail or succeed, but consider the following”
Its an eye opener, especially on partnership with relative, zimangothela kutu ndi m’bale wanga
Wisdom Nyathi shonga
With this information I’m learning daily and I’m gaining something keep up the good work sir🤝
Business partnerships, especially among Africans do not go far or as planned because of greed,lack of trust and jealous. These can only be dealt away with clear values, expectations/goals openess at the beginning of the partnership,as you have discussed in the write up. Kudos.
I can only add, TAKING EYES OFF THE PRIZE BUT RATHER CONCENTRATE ON MEANS OF REACHING THE FINISHING LINE . Eyes should be on the process and not necesarily the result. Others if not most new partners concentrate on how much they will make other than how they can achieve that feat or how they can get to the end.
Back to your discussion, however, when it comes to lawyers involvement, its where Mafana ochepekedwafe koma olimbikira fear,maybe the known or the unknown. Now If this process doesnt require alot of money,then there should be an awareness especially to the young people. Young people shy away at the mention of lawyers. Remember the famous election case, some people think lawyers charge in billions.kkk
In your bonus point,you have tackled the issue of doing business with relatives: I would like you to write more on this, as I unfortunately hold a different view hirtherto.
This is my take Kelvin.Doing business with relatives or family members has proven at least in my eyes beneficial looking at the rich people around us. I would give few names who have done well with doing business with relatives closer to them or with them, but a common example and i know alot of readers would agree is amwenye who mostly go into partnesrhip with family members.
I think, it is because relatives are the first reference point of trust as you share alot things besides blood. Experiences and inside knowleadge about ones character are other important factors when venturing into business partneships . And these can easily be gotten in relatives.
Otherwise, I would gladly welcome your discussion using simple examples or names if that wouldnt offend the mentioned on the cons and prons of doing business partnerships with relatives.
So, I submit
Ndipo live zinthu zake zimatha mosakhala bwino
Komano ka last sentence ko mutibwanji
Thanks for sharing, I like your advice
Great advice, i like it