Many people think it's a bad idea to go into venture with a co-owner because you have to split the ownership and profits. However, having a venture companion can increase your profits and overall venture success. Many of the most successful companies were based on a co-ownership. Having a small business enterprise partner can substantially increase the overall success of your venture because a co-owner can offer their connections, expertise, and skills the venture needs in becoming successful.
Like a property developer who is great at constructing new buildings to the highest quality but is terrible at interior decorating; picking out fabrics, furniture, and floorboards while being able to put it all together to look fabulous may result in a haphazard, messy look that turns buyers away. The question is, should the property developer enlist the services of an interior decorating company or should he/she form a co-ownership with a talented individual who can do the job?
What are the pros and cons? The pros include having a co-owner is cheaper than the companies since there are fewer overheads, running a venture on your own can be a bit scary, so having a co-owner can give you moral support. There is also someone to share the financial and emotions burdens.
Today the venture world is witnessing a radical change from traditional venture co-owners who were mostly family or friends. The internet is largely responsible for heralding in this change. Nowadays venture co-owners are referred to more as commercial enterprises joining together to expand their venture objectives. A classic example of this type of venture co-owner venture can be found when Dell agreed with Intel to only install their processors on their computers.
However, co-ownership also presents its own bottlenecks. To put it crudely, you may not get along. Having a co-owner can be like some marriages; you may not be a match made in heaven. Suppose if you find a co-owner who is dishonest and devious. Money comes in, but too much goes out, into your co-owner's pocket without you being aware of it!
Define and allocate responsibilities: In creating a co-ownership it is important to assign roles and responsibilities for each co-owner, whether that is VP of engineering, marketing and sales or operations. It is best you do what you know best, and let the co-owners do what they know best, give each companion the freedom to improvise, as they will perform better when you respect them for knowing what works and what doesn't.
Write a legal co-ownership Agreement: In choosing a companion co-owner you will need a legal agreement, stating the responsibilities, the financial obligations, how expenses and profits are distributed, what are the terms and conditions in the event the companion decides to leave the co-ownership, and how will the issues of breach of contract or disputes be resolved.
Money starts flooding in but you have to share it - splitting everything in two. You're left with just enough to get by but you WANT TO BE RICH! Money is coming in just enough to pay YOUR bills not your co-owner's bills. If you split everything in two, you're left in the dog house.
Like a property developer who is great at constructing new buildings to the highest quality but is terrible at interior decorating; picking out fabrics, furniture, and floorboards while being able to put it all together to look fabulous may result in a haphazard, messy look that turns buyers away. The question is, should the property developer enlist the services of an interior decorating company or should he/she form a co-ownership with a talented individual who can do the job?
What are the pros and cons? The pros include having a co-owner is cheaper than the companies since there are fewer overheads, running a venture on your own can be a bit scary, so having a co-owner can give you moral support. There is also someone to share the financial and emotions burdens.
Today the venture world is witnessing a radical change from traditional venture co-owners who were mostly family or friends. The internet is largely responsible for heralding in this change. Nowadays venture co-owners are referred to more as commercial enterprises joining together to expand their venture objectives. A classic example of this type of venture co-owner venture can be found when Dell agreed with Intel to only install their processors on their computers.
However, co-ownership also presents its own bottlenecks. To put it crudely, you may not get along. Having a co-owner can be like some marriages; you may not be a match made in heaven. Suppose if you find a co-owner who is dishonest and devious. Money comes in, but too much goes out, into your co-owner's pocket without you being aware of it!
Define and allocate responsibilities: In creating a co-ownership it is important to assign roles and responsibilities for each co-owner, whether that is VP of engineering, marketing and sales or operations. It is best you do what you know best, and let the co-owners do what they know best, give each companion the freedom to improvise, as they will perform better when you respect them for knowing what works and what doesn't.
Write a legal co-ownership Agreement: In choosing a companion co-owner you will need a legal agreement, stating the responsibilities, the financial obligations, how expenses and profits are distributed, what are the terms and conditions in the event the companion decides to leave the co-ownership, and how will the issues of breach of contract or disputes be resolved.
Money starts flooding in but you have to share it - splitting everything in two. You're left with just enough to get by but you WANT TO BE RICH! Money is coming in just enough to pay YOUR bills not your co-owner's bills. If you split everything in two, you're left in the dog house.
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Get a list of ways to find a small business enterprise partner and more info about The Labor Compliance Managers services at http://www.thelaborcompliancemanagers.com right now.
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