Decision Making in a Partnership Business?

[Spencer]

In a partnership business one of the realities you will have to come to terms with are decisions, as partners in a business, you are not going to agree on every decision, often times this may lead to a lot of problems, but the key to handle it is trust and understanding from each party.

When starting a business, there has to be a guideline for making decisions and they have to be tipped in favor of the person with the most capital in the business or hire out a manager who handles the decision-making process and keep the partners out of it.

 

[Highs]

This is why partnership is not easy. You can't make decision alone and when you do or the idea is coming from you and something goes wrong there might be problem. You will need a partner that you both understand each other not just anybody. So that in times like this there will be understanding and things sorted out amicably. You should always carry your partner along in all you do in the business. He or she should do the same thing too. You need a lot of trust. If you don't trust each other there will be problem which will affect the business.

 

[eLdavis]

This is also one of the reasons why decision making in a partnership business usually takes more time compared to a business owned by a single person. When starting a partnership business, there needs to be a legal agreement between the partners. Within this legal agreement, there need to be a provision on how decisions should and would be made in the process of running the business.