Would you agree to this kind of partnership in business?

[Bookwormlux]

One major challenge people have about owning and growing their businesses is the financial support. Most young people complain about not having the needed capital to start a business even when they seem to be ready to start. This kind of thing has led many of them to take loans from banks or other legal lenders, but it does not end well for most of them, especially after the business did not turn out as they expected.

This has led me to ask if you would agree for someone else to support you financially despite not having enough knowledge about the business you are about starting. Maybe an agreement would be made on how you people are going to share the profit.

Let's say you want to start a poultry business, will you agree for someone who doesn't know how a poultry farm is managed to support you financially while you remit some percentage monthly or yearly?

 

[Augusta]

Yes, I think there’s a name for this kind of partnership in commerce either dormant or sleeping partner. That person is still part and parcel of the business; he has contributed what he can afford which is money, then the knowledgeable one in the business should strive to sustain the business for profit making. So yes, I can agree to this kind of business provided we all go by the laid-down rules governing the partnership. By this I mean fair sharing of profit and loss.

 

[Alexandoy]

There is the so called industrial partner which is the one who has the brains on the business. In your example of a poultry business the capitalist partner would provide the capital and you would handle the operations. There are existing partnerships like that, I just cannot name some examples for now. But there is an issue about a capitalist partner that he will just to learn the ropes, so to speak, and later on would dissolve the partnership to register his own with the same type of business. Clearly it is like stealing the intellectual property of the industrial partner.

 

[Janetoje]

When you intend to go into a business and you do not have the necessary funding, and you have someone who is willing to fund your business, the ideal thing to do is to enter into a partnership agreement, whereby it will be stated clearly the time frame within which the agreement is to last, the amount of money to be expended, an account can be opened for the purpose of such partnership agreement so that both parties will be abreast with the workings of the business, who will bear the liability etc.

 

[Peppul]

The thing about business most times is that when you looking for sponsorship you are not going to direct it to some level of people that's why when you watch a program on the television and it's just an upcoming program and they need sponsors they send out a message to anyone capable of helping with sponsorship likewise how it when you want to partner with someone too, it doesn't necessarily mean that the person should have an idea with the business as long as the money is coming from him, although we always like it if the person has an idea so they can also contribute but most times it not always like that. So for me I don't even need him or her to have an idea about poultry as long as I get the money to start up the business with him and if he then wants to know about it as time goes on then I can always put him through.