One of the most common trends in the current business world is entrepreneurship. People, in large numbers, are understanding the importance of starting and maintaining your own business instead of finding a company or organization where you can be hired. However, even though a very large number of people are starting their own businesses every single day, very few business go through and succeed. Some don’t even make it to their first year which is very confusing considering that it seems very easy. Well, the fact of the matter is that starting a business comes with its own challenges, downfalls and other complications which most people fail to see.
One of the most common ways to start a business is finding a partner with whom you share profits, losses and expenses. Unfortunately, more than half of businesses that start out as partnerships fail. The reasons for these failures are pretty devastating and most people wish they had known about them earlier and had ways to avoid them avoided them. Fortunately, if you are reading this, you have that advantage. Some of these pitfalls are very easily avoidable. Failure to avoid them will definitely lead to the fall of your business which will be devastating.
Ignoring the importance of a contract
Once you start your business with a certain partner, it is important to understand that there is a probability that you might lose everything you put into it because of your partner. There have been many cases of people who fail to put their partnership agreements into a contract only to end up with no profits because their partner took everything for themselves. It does not matter whether it is a friend or family member, failure to have them sign a contract binding you two to the business leaves you at a very vulnerable and risky state. Make sure you have it in writing.
Rushing in blindly
New businesses require a lot of dedication, effort and concentration in order to thrive. Failure to provide your business with these three attributes will lender your efforts worthless. Before you and your partner decide to start the business, it is important to look into every detail of the business, to observe the trends and the possible failures that await you ahead. It is very crucial for your business that you take into consideration other businesses like yours that did not succeed and the reasons why they did not succeed.
Choosing the wrong partner
Your partner will have to be there when the business starts and through all the troubles you will face with the business. Most people do not consider their partner’s character and habits. Your business partner should be a person you want to start your business with because of their vision of the business not just because they can afford to bring in the amount of capital you need. Compare your dedication to the business and make sure you take into consideration what they will bring to the business. Some will lead you to trouble because they are not passionate or as hardworking as you are.