Hello Hive

Getting business partners are often one of the different ways to ease the stress and financial burdens of starting a business, while this is advisable for some businesses other forms of business may not require partnership to perform well. Coming together to form cooperative and partnership has worked very well in different occasions even though there can arise some glitches and misunderstanding in between business partners, Writing contracts, forms and memos are some of the keys that can be used to mitigate disagreements and misunderstanding.

Some businesses also do well to employ the services of lawyers should in case sanctions need to be giving to any party that breeches their contracts/memo.
All of these put together makes solid business to flourish and even when it comes to sharing of profits earned in such business it is as simple as sharing it according to each individuals shares. Every partner is a shareholder here. The largest share holders gets the bigger profit and vice versa.

Can we have this solid business plans and partnership with loved ones, friends, relatives or family member?

In most cases when we try to go into business with a people we are in good relationships with most of the vital aspects of business creation is been pushed aside.
No creation of contracts, memorandum of understanding and all of the business Do's and Don't that needs to be checkmated. Even the profit sharing system is often neglected.
We easily feel that since they are our friends/companions there will be no issue whatsoever and this is where many people get it wrong.

A thousand and one issues often arise when doing business having our loved ones as business partner.

• Issues of lack of commitment from any party
• Financial management issues and deceptive profit sharing methods
• Disagreement on better business growth 📈 plans.
• Sudden withdrawal of business partners from personal and in-genuine reasons

The list goes on and on which can badly affect any business/business relationships.

The worst I have seen is when couples in business go for a divorce, several business do not survive the aftermath of such divorce and we have seen good business liquidated for this reason

I have had the privilege to go into business with my brother in the past. And from that experience I have learnt a lot of lessons about how to keep away family/familiarity out of my business ventures. While we have spoken over the phone about the business deal. Having made all the necessary arrangements and profit sharing methods which was fair for both of us.

The one thing I have ignored was the risk factor involved in the business and how the losses was meant to be handled by both party. My mind was fixed on the fact that since the other party is my brother he will handle my capitals with outmost care. The business deal is such that one person is funding the idea from the second party. My own part was to fund the business while my brother does the other tasks.

It didn't occur to me to discuss losses and come to agreement on such matter and/or if there will be compensation if that be the case.

Well a lightning bolt struck and all the capital began to vanish. I have barely got back any of my capital before everything went down the drain and since there was no contract on how to balance losses I had to bear the loss alone.

Edited on Canva

Some of the mistakes I made were

• Not creating a business contract since family was involved
• Not giving the business idea a critical look assuming that my brother would have done such an can be trusted with my capital.

This list goes on and one. Going into business with loved ones has been one of the causes of failed businesses and we should take note of this

Thanks for reading