Krystin RailingKeymasterSeptember 16, 2020 at 8:03 pmPost count: 74
Key Partners are the relationships that you have with other business, governmental, or non-consumer entities that help your business model work. These can be the relationships that your company has with your suppliers, your manufacturers, business partners, etc
Answer these questions:
- Which partnerships are critical to our business?
- Who are our critical suppliers?
- Which of our suppliers and partners are sourcing our key resources?
- What type of partnerships would suit our needs?
- Who are your current partners?
- What resources are you acquiring
Types of partnerships
- Business partnership
- Joint ventures
- Strategic Alliance
- Supplier/ Buyer
Business Partnership Agreement:
A business partner may offer many benefits for your business including:
- Expertise and Knowledge
- More Cash
- Cost Savings
- More Business Opportunities
- Better Work/Life Balance
- Moral Support
- New Perspective
- Potential Tax Benefits
The agreement details each partner’s level of involvement. Your business partnership agreement should include the following:
- The business’s purpose
- Percentage of ownership
- Partner contributions
- Allocation of profits and losses
- Who can bind the partnership
- Decision-making power
- specific responsibilities
- Management duties
- Resolving disputes
- Voting rights
- The death of a partner
Clearly outlining the roles of each business partner reduces confusion and disagreements
A partnership agreement isn’t required to form a general partnership and doesn’t have to be filed with your state, but it’s a good idea to keep on your records when disputes arise.
Write a business partnership agreement before signing any legal paperwork or documentation.
The Roles Matrix aka Responsibility Assignment Chart describes the participation of each business partner, by assigning various roles in completing tasks for a project or business process.
RACI is an acronym used to describe this chart, derived from the four key responsibilities most typically used:
Benefits of the RACI model:
- Clarifies roles and eliminates confusion
- Keeps projects on track and ensures nothing falls through the cracks.
- Ensures smooth transitions and handoffs when there is turnover.
- Prioritizes communication between business partners
Dissolution of Partnership Agreement:
Deciding to end a partnership is never easy, and to further complicate matters, there are a lot of steps involved in dissolving one.
The reasons for dissolution might be:
- Project term ended
- Low cash flow
- Irreconcilable partner disagreements
- Avoiding fines and fees
- Avoiding continued liability
Steps to dissolving your partnership:
- Review your partnership agreement
- Discuss decision to dissolve with partner(s)
- File a dissolution form
- Notify others
- Settle and close out all accounts
- Know it may take 6 months or more to finalize the sale of a business
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