Partnership issue

[Nma]

This is why I usually advice people not to mix business and friendship together that doesn't mean you shouldn't do business with your friend but you should state out the terms and conditions clearly before entering into the business.... well I think your brother should let his friend go and look for someone else who is willing to do business with him

 

[Quert]

I guess you should have asked an advice from the financial expert about what to do when your business still starting to go down, its a great loss. This is to avoid such problems from occuring in the future. You should have made a plan for such things in case bad things happen.

 

[Sammyesx]

y brother and his best friend started a game house business back in the year 2012.

When the business started, it was very successful and both friends were happy together until recently, his friend started lavishing money and the business started going down.

Since the beginning of this year, the sales went down and because of the pandemic, they had to close down the business and I know you could imagine how it will feel like.

Somedays ago, my brother friend came to tell my brother that he doesn't want to continue with the business anymore, that he needs his share.

Please how do we solve this issue?

That is one of the problems of partnership business, most times you cannot guarantee the discipline of your business partner, at this point the only thing your brother can do is to end the business and share the profit or if he has money he should pay the guy off.

 

[Shayo]

One has to be extremely cautious when forming a partnership be it family or friends. Most people don't show their true colors until money commitments comes in.
I'd advise your brother to agree to his friends idea of going separate ways. The fault is from him, he squandered the company's funds so it is not safe for your brother to continue doing business with such person.
If your brother still wants to continue afterwards, he can do so but with proper professionalism.

 

[Diamond07]

Cleaning service is a lucrative business. It doesn't cost much for start up. You need to start gradually from one machine and from there u get bigger. You need to find a good location for such business where there are people in need of the service.

 

[mubinadaddy]

The best way is to close down the business and share whatever that is left out, or trying to revive the business together if nothing is left out to be share accordingly. That's why is very good to go into an agreement before starting outright a partnership business.

 

[lelakil3]

My brother and his best friend started a game house business back in the year 2012.

When the business started, it was very successful and both friends were happy together until recently, his friend started lavishing money and the business started going down.

Since the beginning of this year, the sales went down and because of the pandemic, they had to close down the business and I know you could imagine how it will feel like.

Somedays ago, my brother friend came to tell my brother that he doesn't want to continue with the business anymore, that he needs his share.

Please how do we solve this issue?

If its what he really want is must be like maybe he gets another idea of business. He must get his share on the business cause his friend in not capable in good habit that lavishing money like a waste.

 

[Psalmsavatar]

1. Different management styles. Different management styles don't have to be a big problem. ...
2. Personal habits. ...
3. Financial problems and equity. ...
4. Setting boundaries. ...
5. Commitment levels. ...
6. Disparities in skills and roles.

 

[Tinaconcept]

Partnership business is a business that involves two or more parties with agreement. The word agreement is very important because in the case of breach of contract that is what should be used and partnership should be built on trust if no trust it won't work.

 

[Ehtisham memon]

Some issue create and some mistaken to the partners both are not agreed with each other and loss the business you and other person thinks different mind and some different thinking and ideas about the business

 

[Yaqoob Habib]

My brother and his best friend started a game house business back in the year 2012.

When the business started, it was very successful and both friends were happy together until recently, his friend started lavishing money and the business started going down.

Since the beginning of this year, the sales went down and because of the pandemic, they had to close down the business and I know you could imagine how it will feel like.

Somedays ago, my brother friend came to tell my brother that he doesn't want to continue with the business anymore, that he needs his share.

Please how do we solve this issue?

1. Different management styles.
2. Personal habits.
3.Financial problems and equity.
4. Setting boundries.
5. Commitment levels.
6.Disparities in skill and roles.

 

[Noor khan]

He is funny, share of a business that has close down and that is why I don't really buy into partnership business because nobody can be trusted, especially when it comes to money and since the business is closed down he should tell him there is nothing of the business again

I think it's not so much profitable as well working as well In business both partner or all the partners has to bear the loss and gain profit until or unless there are percentages of share ...means if a partner has 60% or 40 % share ...in that case also profit and loss should be equally distributed .....in your brother case the business is already went down now they both have to pay the debts first and then they will distribute everything's according to their investments

 

[ranaabubakar263]

Over time new attractions and options will continue to present themselves to all partners. When a partner becomes disenchanted with how the partnership is going, she is more likely to lose interest over time.

 

[Nathaniel]

Business partnerships have many advantages as they allow entrepreneurs to pool complementary skill sets and share startup costs and risks with one another. Unfortunately, many of the advantages of partnerships can also be disadvantages, and statistics show that up to 70% of business partnerships ultimately fail.1 Take a closer look at some of the most common reasons why business partnerships break down, so you can make any partnership you enter a more successful relationship.

 

[Diamond07]

In a partnership, there could be misunderstandings about each partner’s role and responsibilities within the business. Partners can clear these issues up by outlining the partners’ roles in the document. From hiring employees to handling accounting to meeting clients, these and other responsibilities can be delegated to partners according to their strengths.

Yes, there might be issues of not putting in equal efforts to the growth of the business, so each person's responsibilities must be outlined in an agreement form. Trust is another issue that might rise up in partnership business

 

[ahmedo24]

Partnership challenges are inevitable but if both partners understands that concept and they both have legal documents backing all their activities even if they are blood brothers the issue will always be minimal.

 

[Khezo]

Well the business was allowed to reach this level of destruction because of your brother's friend lavish way if spending. I believe it's best they split up now to avoid bad occurance in the future.

 

[Asad Ali]

This is a very difficult situation because even if the business is down, it is a difficult step to give your partner a share.This is often the case in partnerships because when people see a deficit, they start asking for their share.If your brother can convince him, do it for a while, otherwise he will have to pay.

 

[iamgroot]

My brother and his best friend started a game house business back in the year 2012.

When the business started, it was very successful and both friends were happy together until recently, his friend started lavishing money and the business started going down.

Since the beginning of this year, the sales went down and because of the pandemic, they had to close down the business and I know you could imagine how it will feel like.

Somedays ago, my brother friend came to tell my brother that he doesn't want to continue with the business anymore, that he needs his share.

Please how do we solve this issue?

That is the difficulty of having a business partner, when one is the only one who really has a passion for business and the other is just a success and does not want to accept failure. If I were your brother, if he could give the shares of his business partner, he would give them. And he should look for a new partner again, but this time he should check his partner properly so that what happened will not happen again. Business partners must, until they fall down, they will rise together.

 

[Blue house]

This is a very big problem, but it depends on the terms and conditions you agreed to before venturing into partnership business.
If they had a terms and conditions on how to run and spend money and one of them is not following the laid rules then they will have to dissolve or sit down again to make a new agreement on how to run the business.