企业管理paper代写 Advantages of Partnership

Advantages of Partnership

企业管理paper代写 Forming a partnership is quite easy, and it is far easier to run and manager compared to other forms of businesses.

Introduction  企业管理paper代写

Starting your own business has numerous benefits. Anything that you earn belongs to you and you are not responsible for other people’s mistakes. Additionally, you do not gave to report to anyone else, therefore.  The decision making process becomes easier. One can start a business using the model of sole proprietorship, or partnership, or simply request investments from another party.

However, sole proprietorship has one benefit, which is like a double edged sword. While the profit is solely yours.  Any loss that you incur also belongs to you and you must be the sole bearer of it. On the other hand though. Partnership offers numerous benefits that overcome these drawbacks.

It depends whether all the partners who are involved in the process are active partners.  Or whether some of them remain dormant or sleeping partner. The responsibility of a dormant or sleeping partner remains only so far as the investment is concerned.  While he or she does have a share in the profit. They are not responsible for any of the decisions that are being taken to run the business.  企业管理paper代写

On the other hand, the active partners are always responsible for any decisions that are taken for the betterment of the business.

Also, they are actively responsible for ensuring that the business is generating profits. For this they have partner meetings regularly to discuss the direction of the business and to consistently analyze how the business is performing.

The basis of forming a partnership is for two or more people to come together and sign a contract of partnership.  Where each decides whether profit and loss sharing will be equally distributed or there will be a separate ratio depending on the investment of the different partners.

Most people come together to form partnerships because they have come up with a common idea which can be implemented while utilizing each other’s abilities, experiences, and skills. Each partner can have a set of skills that complement the business idea.  And eventually help them in generating profits and developing plans that help the business grow to involve other people as well. Their skills complement the business idea.  Or either that one of them has a high capital that can be invested. 企业管理paper代写

In most cases, running a small business is usually a good idea. As it saves the parties involved from the trouble of getting approvals and it is also a very good options when it comes to dealing with legal matters. The ways a partnership works and how it is set up is one of the most appealing forms of business as they manner in which it is governed and taxed is more suitable for most of the people who are involved in it.

Advantages of Partnership

Partnerships offer immense benefits, some of which are discussed below:

Capital  企业管理paper代写

The nature of the business demands that the capital be invested by different partners. The funds are gathered from the partners’ personal capital to bring together the startup capital. So, the higher the number of partners.  The greater the capital investment will be, however, there can be a maximum number of 20 partners in a business, otherwise, it will become a company.

In the case that we have been assigned there are three partners.  That are currently performing the business activities with six clients in total, leaving each partner to handle at least two clients. Having more partners allows higher flexibility and therefore, offers even greater potential for growth. This also ensures a higher probability of earning profit.  And the growth potential of the business increases.

Flexibility

Forming a partnership is quite easy, and it is far easier to run and manager compared to other forms of businesses. Such organizations usually follow less stringent policies and procedures and are also less strictly governed by the statute and the governing bodies of the companies ordinance.

In terms of the rules and laws being followed to form a partnership, it is also easier, due to the mutual discussion and understanding of the partners. Each active partner has a say in how the business should be run.  And if the partners are on good terms with each other and understand each other then they are able to make decisions faster. Therefore, in terms of time management, implementation of decisions, and executing the desired results.  Partnerships are much faster to operate in, provided the partners agree with each other.

Shared Responsibility  企业管理paper代写

This benefit is one of the most sought after. Because it offers a sense of protection to each partner, assuring them that they are not alone.  And that they are responsible for the things that need to be carried out in order to ensure the profitability of the business. The partners share their responsibilities.  Which makes sure that the decision making does not belong to only one person. And is rather dependent on the consensus of all parties who are involved in it. This, not only allows them to make the best use of their skills.

But also, helps in managing the tasks, and responsibilities by splitting them amongst each other. So, if one of the partners is good at finance, whereas, the other on marketing, and another one has connections or enjoys working with equipment.  Then their skills would come together to form a unique combination.  企业管理paper代写

Decision Making

As mentioned previously as well, decision making becomes much easier, especially when all the partners are on good terms with each other and understand each other’s point of view. They can help each other out when need be. And brainstorm for ideas in order to develop solutions to prevailing problems. They can also come up with new ideas for business growth and new product development to see how well they can fare in the future.

These couple of benefits are quite favorable for the involved parties and help them in coming up with ideas and solutions that work.

Case  企业管理paper代写

Moving on with the case. The company is based on a partnership, which three partners who are involved in equal profit sharing. The company is names “We’re Right and You Need  Us”.  Which offers consulting services to the clients based on advanced principles and analysis of how they work and what can be done to make their business better and more profitable.

Currently the monthly revenue stream is of $150,000/- per month for the first year, in which the three partners are dealing with and managing six clients, with two per partner. All the costs are currently being paid out of this revenue stream.

The costs include the travel fare which needs to be paid every time a partner travels to one of his or her clients. In order to meet the clients, each partner makes at least 30 trips in one year, where each trip costs about $2500. These trips are either made to make sales, or attend various conferences which help in furthering the network and assists in socializing with potential clients.

Every year, each partner buys a new computer.

And upgrades the system to $5000. After the first year, you hope to increase thee client base, until eventually by the third year, each partner will have at least four customers to manage, and assist with their dealings. Eventually, the revenue stream is expected to increase to $180,000/- per month, assuming the revenue per customer in year four will be $15,000/-.

Currently the revenue is $150,000/- per month

The annual revenue is $1,800,000/-

Costs of trips is 30 x 3 x 2500 = $225,000/-  企业管理paper代写

Computer costs  = $25,000/-

Total Costs  = $250,000/- per year

For five year planning, it is imperative to note how much profit is being earned. If we look at the aforementioned calculation, then the profit is approximately $510,000/- per partner. Therefore, if the next five years are concerned.  And the revenue stream increases to $180,000/- per month, then the annual revenue would grow to be $2,160,000/-. Eventually by year 5, they should increase the team to include a manager or business development expert who can bring in more clients, so by year 5, the company should have at least 20. This will ensure a good revenue stream for the fourth and fifth year as well.

Conclusion  企业管理paper代写

To conclude I would simply like to state that partnership is one of the most feasible and widely used form of business, in which multiple people come together to startup a business that is based on one idea which their skills can be used for. Additionally, it is also one of the most effective ways to begin a business while ensuring that profit can be shared in the simplest way possible.

In the aforementioned case, having goals will be more beneficial as it will give the team a strategic direction of where the business is headed and how they need to move forward. I think, seeing as the business is already generating profit.  They can eventually pull off a higher clientele base and decide what is best for the company.

References

Jean Murray, What Is a Partnership? How Does It Work? retrieved 25^th November 2017 from;

https://www.thebalance.com/what-is-a-business-partnership-398402

Glenn Quinn, Advantages and Disadvantages of Partnership, retrieved 25^th November 2017 from;  企业管理paper代写

https://www.thecompanywarehouse.co.uk/blog/advantages-and-disadvantages-of-partnership

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