Instead of having three or four small businesses in a particular location, these businesses could come together to form a very strong one.
I believe in building a team together, imagine a small shoe seller, a small cloth seller and another person who deals with underwear’s all come together to open a boutique, they all share the rent and each person focuses on each side of his business.
Another example is having two little shop owners coming together to create one giant, that will be better than having to several shops meeting the same need, I believe that will come with more benefits than having individual stores.
The obvious plight of a small road side vendor.
There is a great power in partnership, one thing I have discovered with road side vendors and small kiosk owners is that they remain in that circle for a very long time: These road side vendors go about the same daily activities until they probably reach an old age where they can no longer work and sometimes their children will just take over the business. The reason why it appears their life is going around in circles is that they get loans to start the business and when those loans are taken, they are supposed to make a constant return to those who loaned them the money either on a weekly or on a monthly basis, after the money is returned the profit is used to eat or get what they need and nothing is left any longer, so they have to get another loan and the circle continues like that for several years.
Now imagine that rather than being a road side vendor for years without moving, you form a team with other people who have great business ideas, you both join the little funds you have together you open an enterprise you seek for investment, you draw out your business plan properly and you place your complete attention on growth and improving the business, after some years you grow and expand your business, you begin to employ road side vendors who will generate profit for you while you pay them salaries.
However, as powerful as partnership is you also have to consider the fact that it has harmful effect if you enter into partnership with the wrong person, no matter how close you are to the person, it is necessary for you to agree on legal terms how your sharing formula is going to be and the partners must be restrained from spending the company fund on unnecessary things, this is the only way the company is going to grow.