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When Is Business Partnership Advisable In Nigeria? - Business - Nairaland

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When Is Business Partnership Advisable In Nigeria? by okwutency(m): 12:52pm On Apr 04, 2013
Nairalanders pls I need help. I have a business I established. Initially, it looks like the stress was too much and now the biz seem to be growing small small.

And I have this very close friend that has been help from secondary school, in fact almost all the cloths I’ve is from him. He never showed interest in this biz until recently that it looked like I’m going to make huge profit, then he came with the idea of being my partner in the biz. He said he’l bring half of the money in the biz now and then after every month, we share the profit 60% and 40%.

I didn’t agree in this idea and asked him to start his own biz, he said it’s not advisable for 2 friends to be producing the same thing in the same area and he can’t do it. And I also told him that even if I’m going to do the partnership thing, it’l not be now, that my biz has not grown to that level that he should wait till I made great achievement in it. If I do it now, I’l loose interest in the biz and the whole thing will collapse. This issue is trying to brake our relationship. Pls advise me.

Pls I want to ask, when is it advisable to make partnership in biz? Is it when the biz is started, growing or grown. Pls I need answers with reason.
Re: When Is Business Partnership Advisable In Nigeria? by bigx(m): 9:24am On Apr 05, 2013
He is not commited to the growth of the business. He is commited to the money you are making from what you explained.
Forget breaking of friendships to me there are no feelings in business, the way I'm seeing it he might want to learn your tricks and muscle you out.
To me, you should only bring in partners who bring in more than money to your business,
Either technical, administrative or marketing skills.
If it is money alone take it as a loan to expand or for cashflow and pay back before you sign yourself into slavery.

9 Likes

Re: When Is Business Partnership Advisable In Nigeria? by okwutency(m): 9:58am On Apr 05, 2013
Thank you very much for this advice. I asked him to do advert for me when i started this biz newly, he didn't want to do it. This time he is saying that he is not good in advertisement.
I now wanted to take loan from him just to compensate him by telling him that i'l pay him 15% interest per month not minding that i'm loosing in de money but he declined saying that i should make it 20% and i disagreed. Dis is now looking as if i'm leaving behind the person that has been helping me.
Re: When Is Business Partnership Advisable In Nigeria? by ichommy(m): 12:10pm On Apr 05, 2013
Brb
Re: When Is Business Partnership Advisable In Nigeria? by vosquare: 12:13pm On Apr 05, 2013
I NO KNW WAT 2 SAY
Re: When Is Business Partnership Advisable In Nigeria? by kponkedenge(m): 12:15pm On Apr 05, 2013
Wen d price of garri comes down.

N by d way I'm d 3rd 2 commet dancing azonto
Re: When Is Business Partnership Advisable In Nigeria? by buJu234: 12:17pm On Apr 05, 2013
from experience plzzz be over careful... infact b more than 100% careful when it comes to partnership in the country called Nigeria.
Re: When Is Business Partnership Advisable In Nigeria? by Morgan1092(m): 12:26pm On Apr 05, 2013
ichommy: Brb
vosquare: I NO KNW WAT 2 SAY
kponke denge: Wen d price of garri comes down.

N by d way I'm d 3rd 2 commet dancing azonto
What re dis children doing on dis thread. C'mon go 4ur holiday lesson *coming wit cane, d children ran away*
Re: When Is Business Partnership Advisable In Nigeria? by CUIzundu(m): 12:32pm On Apr 05, 2013
Being friends since ages has little or
Nothing 2do with business ventures esp. Wen
It comes 2 business partnership...
2ndly... Since u've started reaping d benefits
Of ur biz, do u really need anybody With tym
U'll get there

Mai advice...do ur thing ALONE, since u r d
initiator.....daz all....
Re: When Is Business Partnership Advisable In Nigeria? by Nobody: 12:38pm On Apr 05, 2013
OP,

Let me tell you the very simple fact. You do not owe him anything ok, unless there is something you are not telling us. You started a business, you took all the risk alone and all the wahala alone. Now that the business is making money, you cannot afford to share the profits with anyone.

Dont take a loan from him @ 15% per month. If you can, go to the bank to get a loan but dont take anything from him. Your friend wants to reap where he did not sow and business partnership is not by force.

Remember that - you owe him nothing!

3 Likes

Re: When Is Business Partnership Advisable In Nigeria? by Itoroetti(m): 12:38pm On Apr 05, 2013
Hope u know that business amd friendship are 2 parallel path that doesn't meet.
Maintain ur friendship,but don't bring friendship into business.its like saying u want to marry a woman or a woman want to marry a man out of pity,it will bounce back with heavy consequences.pls becareful. A word is enough for the nice.

Akwa ibom ayaiya.
Re: When Is Business Partnership Advisable In Nigeria? by caesaraba(m): 12:43pm On Apr 05, 2013
A lot of us biz people who are willing to take risks and venture into the unknown experience this from time to time. Those close to you will sit down and even discourage you when u are starting up a biz, then turn around to tell you they wanna "partner with you" so that the biz can grow. In other words, now that you have gotten something that works, they want to invest so that "monkey go dy work while baboon go dy chop."

See, since you have finally found how to grow your biz, don't go into any partnership abeg. Knowing that you fully control your biz lets you sleep well at night with peace of mind especially on those 'low-tide' periods when biz might not be moving too well. (You won't have to worry about how you are goin to settle a partner).

He has tried for you in the past. Run yor business and when you have enough, also pay him back by doing him some favors. Simple! That's how life should be. The fact that he helped u does not mean you are his subject in anyway.

If that will ruin your relationship, then fine! Better that than entering a partnership and when things don't go well it will not only ruin your relationship but also give room for all sorts of name-bashing, police case, etc.

Wish you the very best in your venture. Peace.

5 Likes

Re: When Is Business Partnership Advisable In Nigeria? by datola: 1:01pm On Apr 05, 2013
Nashville: OP,

Let me tell you the very simple fact. You do not owe him anything ok, unless there is something you are not telling us. You started a business, you took all the risk alone and all the wahala alone. Now that the business is making money, you cannot afford to share the profits with anyone.

Dont take a loan from him @ 15% per month. If you can, go to the bank to get a loan but dont take anything from him. Your friend wants to reap where he did not sow and business partnership is not by force.

Remember that - you owe him nothing!



He owes him a lot. Remeber the Op said the firend has been there for him through life/school.

He just need to apply wisodom in not involving him in the bsiness.

@Op, please find any way possible (but do not involve him in the bsuiness so as not to create future problems) to settle your friend who was there for you when you had nothing.

I'm happy for you for doing a profitable business

All the best!
Re: When Is Business Partnership Advisable In Nigeria? by okwutency(m): 1:04pm On Apr 05, 2013
Thank you all very much. I appreciate all your advices. God bless you all in abundance for the great advices.

One thing i forgot to add was that there was a time when his cousin use to send phone. I hustle and look for buyer and sell the phone. He only orders for the phone. And we shared the profit 50-50. He is making reference to that issue now and i told him that the stress of selling those phones was worth it. That i can't just collect his money and be a pledged servant.
Re: When Is Business Partnership Advisable In Nigeria? by devour129: 1:08pm On Apr 05, 2013
caesaraba: A lot of us biz people who are willing to take risks and venture into the unknown experience this from time to time. Those close to you will sit down and even discourage you when u are starting up a biz, then turn around to tell you they wanna "partner with you" so that the biz can grow. In other words, now that you have gotten something that works, they want to invest so that "monkey go dy work while baboon go dy chop."

See, since you have finally found how to grow your biz, don't go into any partnership abeg. Knowing that you fully control your biz lets you sleep well at night with peace of mind especially on those 'low-tide' periods when biz might not be moving too well. (You won't have to worry about how you are goin to settle a partner).

He has tried for you in the past. Run yor business and when you have enough, also pay him back by doing some favors to him. Simple! That's how life should be. The fact that he helped u does not mean you are his subject in anyway.

Of will ruin your relationship, then fine! Better that than entering a partnership and when things don't go well it will not only ruin your relationship but also give room for all sorts of name-bashing, police case, etc. you read my mind! Na serious monkey they work o since your biz is picking up small small,face your front small small Oga it's better for you

Wish you the very best in your venture. Peace.
Re: When Is Business Partnership Advisable In Nigeria? by IjewereCo: 1:45pm On Apr 05, 2013
Never mix your business with sentiment(friendship). If you need money to expand your business, either go for loan officially or look a partner who is neither your friend nor family relative. If you do otherwise, issues might come up tomorrow and handling it will be clouded with sentiments.
Don't be suprise you might end up losing the friendship , the business or both.

Strong advice: NEVER ALLOW THAT FRIEND OF YOURS TO BE YOUR PARTNER, THAT MIGHT BE DIFFICULT BUT WILL SAVE U FROM FUTURE SARBOTAGE

2 Likes

Re: When Is Business Partnership Advisable In Nigeria? by AroComputerCe(m): 1:53pm On Apr 05, 2013
Entering Into Business Partnership Agreements

Questions To Be Considered In Forming a Business Partnership Contract:

Name of the Business Partnership.

Duration of business partnership - number of year or "until dissolved".

Location of office.

Capital contribution of each Partner.

Whether Partners may make additional contributions.

The level at which Capital Accounts of the Partners must be maintained.

Participation of each Partner in profits and losses.

Salaries, if any, to be paid to Partners and whether or not these salaries are to be treated as expenses in determining distributable profits.

The amount of any regular Drawings against profits.

Duties, responsibilities, and sphere of activities of each Partner.

Amount of time to be contributed by each Partner.

Prohibition of outside business activities by Partners that would be in competition with the Partnership business.

Who is to be the managing Partner and whose decision will prevail in case of a tie or a dispute?

Procedure for admitting new Partners.

Methods of admitting Junior Partners, without capital, if such a procedure is to be considered desirable.

Method of determining the value of Goodwill in the business, in case of death, incompetence, or withdrawal of a Partner or dissolution of the Partnership for any other reason.

Method of liquidating the interest of a deceased or retiring Partner.

Age at which a partner must withdraw from active participation, and arrangements for adjusting his salary and equity.

Whether or not surviving Partners shall have the right to continue using the name of a deceased Partner in the Partnership name.

Period of time in which retiring or withdrawing Partners may not engage in a competing business.

Basis for expulsion of a Partner, method of notification or expulsion, and the disposition of any losses that arise from the delinquency of such a Partner.

How will the event of protracted disability of a Partner be handled?

Whether the Accounts are to be kept on a Cash or Accrual basis and if on the Cash basis, the method of compensating Partners who withdraw or retire for income realized on services rendered, but not invoiced, at the time of their withdrawal or retirement.

The Fiscal Year of the Partnership.

Whether or not Interest is to be paid on the debit and credit balances in the Partner's accounts.

Where the Business Partnership cash is to be deposited and who may sign checks.

Whether or not all Partners shall have access to the books of account.

Under what conditions Limited Partners may be accepted into the firm, if so, who shall be designated as the general partner.

Prohibition of the Partners pledging, selling, hypothecating or in any manner transferring their interest in the partnership except to other partners.

Identification of material, contracts or agreements affecting the liability or operation of the business partnership.

4 Likes

Re: When Is Business Partnership Advisable In Nigeria? by Nobody: 1:55pm On Apr 05, 2013
Just tell him that its beta to be friends dan patners because when it comes to money issue is a diff. Ballgame,
Re: When Is Business Partnership Advisable In Nigeria? by healthcons: 2:16pm On Apr 05, 2013
Depending on d kind of bizness
Re: When Is Business Partnership Advisable In Nigeria? by Nobody: 2:25pm On Apr 05, 2013
Answer is NO!

I am telling you as a victim of such circumstances. Your friend is interested in the profiteering and has nothing more to offer. If he insists, ask him to lend you his money with a fixed annual interest, NOT MONTHLY interest please. And make the interest less than 5% APR, and then give him 2 weeks to think about it, not less. He will run, and your friendship will wane, dont be bothered about it. I have lost close to $100,000 in investments with friends. Do not ever go into any business without an MOU and your lawyer by your side and a witness, even if its business with your blood brother.

3 Likes

Re: When Is Business Partnership Advisable In Nigeria? by Nobody: 2:35pm On Apr 05, 2013
datola:



He owes him a lot. Remeber the Op said the firend has been there for him through life/school.

He just need to apply wisodom in not involving him in the bsiness.

@Op, please find any way possible (but do not involve him in the bsuiness so as not to create future problems) to settle your friend who was there for you when you had nothing.

I'm happy for you for doing a profitable business

All the best!

When I said he owes him nothing. I meant he is not indebted to him beyond friendship. If he can help his friend, by all means he should, but business partnership is a whole new world.

1 Like

Re: When Is Business Partnership Advisable In Nigeria? by caesaraba(m): 2:39pm On Apr 05, 2013
Nashville:

When I said he owes him nothing. I meant he is not indebted to him beyond friendship. If he can help his friend, by all means he should, but business partnership is a whole new world.

Exactly!
Re: When Is Business Partnership Advisable In Nigeria? by kokoye(m): 2:52pm On Apr 05, 2013
This is a question for my oga at the ....
Re: When Is Business Partnership Advisable In Nigeria? by AjanleKoko: 3:05pm On Apr 05, 2013
okwutency: Nairalanders pls I need help. I have a business I established. Initially, it looks like the stress was too much and now the biz seem to be growing small small.

And I have this very close friend that has been help from secondary school, in fact almost all the cloths I’ve is from him. He never showed interest in this biz until recently that it looked like I’m going to make huge profit, then he came with the idea of being my partner in the biz. He said he’l bring half of the money in the biz now and then after every month, we share the profit 60% and 40%.

I didn’t agree in this idea and asked him to start his own biz, he said it’s not advisable for 2 friends to be producing the same thing in the same area and he can’t do it. And I also told him that even if I’m going to do the partnership thing, it’l not be now, that my biz has not grown to that level that he should wait till I made great achievement in it. If I do it now, I’l loose interest in the biz and the whole thing will collapse. This issue is trying to brake our relationship. Pls advise me.

Pls I want to ask, when is it advisable to make partnership in biz? Is it when the biz is started, growing or grown. Pls I need answers with reason.

The only time to bring in a partner in your business is when you need one.

You might need a partner to help with the current volume of work, inject some funds in the business, or help to expand the scope of the business.
You don't bring in a partner into your business because he or she is your pal. It's a no-no.

3 Likes

Re: When Is Business Partnership Advisable In Nigeria? by afolabisegun(m): 3:39pm On Apr 05, 2013
okwutency: Nairalanders pls I need help. I have a business I established. Initially, it looks like the stress was too much and now the biz seem to be growing small small.

And I have this very close friend that has been help from secondary school, in fact almost all the cloths I’ve is from him. He never showed interest in this biz until recently that it looked like I’m going to make huge profit, then he came with the idea of being my partner in the biz. He said he’l bring half of the money in the biz now and then after every month, we share the profit 60% and 40%.

I didn’t agree in this idea and asked him to start his own biz, he said it’s not advisable for 2 friends to be producing the same thing in the same area and he can’t do it. And I also told him that even if I’m going to do the partnership thing, it’l not be now, that my biz has not grown to that level that he should wait till I made great achievement in it. If I do it now, I’l loose interest in the biz and the whole thing will collapse. This issue is trying to brake our relationship. Pls advise me.

Pls I want to ask, when is it advisable to make partnership in biz? Is it when the biz is started, growing or grown. Pls I need answers with reason.

1. the issue of partnership in Nigeria especially friendship in business is a great issue.if you want to succeed in partnership just look for someone else.

2. your friend I think he's interested in the present stage of ur business that is growing gradually, but as a business owner you need to take your business to a certain level before you can say join me and invest

3.The issue of percentage think on it very well before you allow that

1 Like

Re: When Is Business Partnership Advisable In Nigeria? by vizboy(m): 3:42pm On Apr 05, 2013
Hey man business has it rules and there is no friend when it comes to buziness. My advice to you is to keep going with ur biz in as far you know you are making ur profit. Little by little u will get there. And i must tell that guy u say is your friend is actually not a good friend. Dont be a slave in ur own business

1 Like

Re: When Is Business Partnership Advisable In Nigeria? by tiab: 5:26pm On Apr 05, 2013
Sounds to me like partnering is his way of telling you, that you owe him one(a favour).Your buisness is like your baby, u've nurtured it, and when its time to start reaping, (even if it's a little benefit at this stage), you are being choked.You have a right to decide when and how you'll repay your friend and he shouldn't give you the condition.

1 Like

Re: When Is Business Partnership Advisable In Nigeria? by Nobody: 9:11pm On Apr 05, 2013
THERE IS NO FRIENDSHIP IN BUSINESS.

Friends have given me a lot of business losses. Now i dont keep friends. When they gain ground in what you are doing, they will change cOloUR.

IGNORE THIS ADVICE TO YOUR PERIL.

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