We’re not trying to be cute … we truly believe that achieving extraordinary business success in the new entrepreneurial craze in Nigeria requires a fundamental approach – finding partners, not clients. Bringing in more customers isn’t key. It makes sense to work with people who not just help rake in sales and cash, but rather are vested in your business’ success, and ready to help develop it.
What’s a partnership?
It is a legal form of business operation between two or more individuals who share management and profits. Each person contributes something to the business – such as ideas, money, property, or some combination of these. Management rights, profit share, and personal liability will vary depending on the type of partnership.
The federal government of Nigeria recognizes several types of partnerships. However, the two most common are general and limited partnerships.
A general partnership involves two or more owners carrying out a business purpose. General partners share equal rights and responsibilities in connection with management of the business, and any individual partner can bind the entire group to a legal obligation. Each individual partner assumes full responsibility for all of the business’s debts and obligations.
A limited partnership allows each partner to restrict his or her personal liability to the amount of his or her business investment. Not every partner can benefit from this limitation -at least one participant must accept general partnership status, exposing himself or herself to full personal liability for the business’s debts and obligations. The general partner retains the right to control the business, while the limited partner(s) do(es) not participate in management decisions.
Here’s why you need a partner, not a client:
You’ll benefit from the best ideas and solutions of a business partner – ideas that might make yours seem amateurish. This definitely makes decision-making easier and implementation more productive.
Starting and running a business with partner(s) is good for business – financially, of course, as they help in sharing costs. Especially with large projects, business partners help in reducing the stress of borrowing to get funding.
Having partners with different skill sets is key to achieving business success. This is so as each partner gets to contribute his/her quota in their area of expertise. A partner may be proficient in the areas of Sales, Marketing and IT. While the other might be knowledgeable in Accounting, Auditing, and HR.
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