business partnerships

Hello all,

Wht are your experiences with business partnerships?

My main reason for wanting to get into one is lack of capital to sustain my business long term and keep my store fully stocked.

I partnered with a family member (uncle) but he keeps tying up the other half of the money needed to run the company. These delays may cost me customers.

I have a friend on the other hand with enough capital - he is reliable and we are in the same line of work.

What re your experiences as far as partnerships are concerned?

Looking fwd to sober responses.

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I have experience in business partnerships. I eventually bought my partner’s share of the business. My experience was that in partnerships, there will always be a joyrider in a business. You are better off alone and smaller. Those are just my 2 cents. Partnerships only work where there is clear documentation, division of roles etc…like in companies…word of mouth doesn’t cut it.

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Money and blood don’t mix like two dix brathe…especially among Africans my fren.

Business partnerships inaweza prosper only if you have a good partnership deed drafted by a lawyer, registered in Sheria house and the partner is a person who respects the law and keeps his word.

On the other side, it is less on what type of business association but more to do with the people you are dealing with. Kuna wasomali, Mapanthre, Machingchong etc who do business without any paperwork for many years on gentleman agreements.

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Truth! Dead weight kwa biz huku Kenya ni mob sana. Biggest cause of losses and low productivity.

The only option you have, in case you are cash strapped is to divide the premises by half, and share the rent equally. From there, run the businesses separately. Rent is the biggest expense in retail, and if you share ONLY that expense, you will have eliminated your greatest handicap

I want to have lawyers involved and all the paper work sorted out.
My other option is a bank loan which isnt really an option at this point.

So either i keep relying on my uncle for capital or i partner with my friend who is in the same line of business and wont tie up capital with other commitments.

Noma ni mmoja akidefault rent anaweka dead weight. Angangane solo. if it is partnering, it with someone at the same level, si dependant.

You have to consider that getting a prime location is the hardest thing in retail business…that is a fact. In such a case, shifting to a smaller location is not an option. Dead weight itakuwa limited only to rent. Most people pay rent…and most partnerships dead weight hukuwa juu ya joyriding such as kukosa kureport job etc.,sio kutolipa rent

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i dont have rent costs. I own the shop.

I just need capital to keep the business going by buying enough stock to maintain demand

If you own the shop, you dont need a partner. Work with what you have. Honestly, if you cant sell the little that you have, dont you think adding stock is throwing good money after bad money??

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what i have isnt enough to constantly bring enough stock every month…

My uncle is frustrating me because he keeps tying up money that i need to consistently bring enough stock. I dont want to lose customers.
In my line of work consistency is everything

In my opinion, half of your problems can be easily axed by axing the partner.

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Exactly. He should go it solo and try getting a loan instead.

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If the partner is reliable and in the same line of work, you do not need to think twice. Proceed with the partnership.

The grass looks greener in the next garden. Until you partner with a person, you cant really give them a clean bill of health…unless he has a track record with other partnerships. Partnering is like driving a car with two steering wheels and two drivers.

When you partner with someone in the same line of work, you do not need to explain every detail of every move you need to make. There will be not be many suspicions. And when challenges arise, its easier to discuss them.What’s more, such an individual can offer informed input.

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mjamaa kama uko na security nenda kachukue loan kwa sirkal na 8% ashana na roan ya bank. Unaeza pewa hadi 2M KES. Thank me later.

swali ya kwanza hii line of work unasema ni gani? we are all anonymous here

ya pili…you have no idea how lucky you are haulipi rent…rent drain our profits kwanza na 10% increments annually
ya tatu be content with what you have,and grow pole pole example if its a shop usitakee kustock kama nakumatt

ya nne capital isiwe excuse ya kupartner na watu watakuletea mashida badayee,

grow pole pole solo

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looks like you are more reliant on your uncle than you would like to admit. Heed advice given, go solo, supply the market you can and grow step by step from there.

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In this village it has been said time and again that partnering with relatives in business is the worst thing you can do.

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