Business Articles
Partnerships
Two types pf partnerships are common in the UK
Sole Trader (Partnership)
Limited Liability Partnership
Sole Trader Partnerships are formed when 2 or more (maximum of 20) Sole Traders join together to form a Partnership.
Each partner is normally jointly and severally liable for the whole of the firm's debt, to the full extent of their personal means as if they were sole traders.
An exception to the normal joint and several rule is that this only applies to tax (but not VAT)
Limited Liability Partnerships can be set up with each partner's liability limited to the amount of the capital contributed.
Limited Partnerships must have at least one partner who is liable for the full amount of the firm's debts, and must register with Companies House or local regulatory body if outside of England.
Choosing a Partner
Integrity
Your customers will often make their purchasing decisions based upon their experience of dealing with people in your business.
Does your potential partner follow-through with promises, is he/she a good listener, and do they display this essential attribute in all situations?
Complementary Skills
You may be the worlds best salesperson, but that doesn't mean you can keep a good set of accounts, or keep the IT system running, which is where the complementary skils of your partner are vital.
Common partnerships amongst SME's centre around an IT whiz/web designer + a sales person or a consultant + marketing person or an admin person + designer
The possibilites are endless. Determine what skills are needed to further your businesses development and use this to narrow down your selection.
Experience
A mix of academic and practical qualifications is ideal.
Academic qualifications are great, but nothing beats real world experience.
Try to determine that your potential partner can apply what they have learned in your field of business.
Solvency
Can this person support themselves currently, and if required be able to produce additional capital if your business requires it?.
Failing to detremine this could leave your business in a weaker position, and you may not be able to expand to meet demand.
All articles reproduced with permission from This Is Your Business