Developing a Partnership Business Plan

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Table of Contents

Background Information
Company Description and Viability
Specific Issues to Consider
Business Plan
Market Analysis
Business Growth
Conclusion
Works Cited

Background Information

The success of every business organization depends on various issues such as management, leadership, decision-making, and responsibilities of different shareholders. The proposed idea is to have a partnership business. The main objective of the business will be to provide consulting services to different clients and companies. The partnership business should also be ready to provide quality services to every client. The proposed partnership will bring together three former schoolmates. However, it will be appropriate for the three individuals to consider specific issues before forming the partnership. This approach will be critical towards ensuring that the company emerges successful and profitable (Gage 63). Several agreements should be considered before forming the partnership business.

Company Description and Viability

The proposed company will be providing consulting services to different clients. Such services will target companies in variouss industries thus making it easier for them to realize their potentials. The company will be able to address the needs of many clients and promote their businesses. However, the biggest issue to consider is whether the idea to form the company is feasible. It is notable that things are no longer promising at Engulf and Devour. That being the case, a new opportunity can be attractive and profitable for the three partners (Sutton and Geddes 47). The nature of the business will ensure the company provides quality consulting services to every client.

The first contract is profitable because the partners will get $ 75,000 every month. The client will also cater for various expenses incurred by the members. That being the case, the idea is plausible and can eventually make the partnership business successful. The situation indicates that Engulf and Devour is no longer profitable. This fact explains why there is need to look for a new opportunity. The decision to form a partnership is agreeable and can result in greater profits. A proper managerial strategy will also be needed at the company. However, it will be appropriate to consider a number of elements before entering into this partnership (Clifford and Warner 21). This is the case because various problems might arise and eventually make the partnership unprofitable. Such issues can also destroy the company.

Specific Issues to Consider

Partnership Agreements

A partnership agreement is “one of the vital tools used to protect businesspeople and their companies” (Eisner and Cohen 29). Several elements should be “included in the partnership agreement” (Eisner and Cohen 29). The agreement should also be signed by every business partner. To begin with, it will be necessary “to determine how much every partner will be expected to contribute to the partnership before starting the business” (Richmond 523). The agreement should indicate the roles and duties of every partner. The partners will “also have to decide how losses and profits will be shared” (Eisner and Cohen 32). The issue of money should be handled carefully because it can affect the future and sustainability of the business.

The partners should also “indicate the type of consent every partner should obtain before obligating the company” (Richmond 519). This is the case because liabilities can eventually affect the success of the partnership business. More often than not, a partner will “bind the partnership without consent from the other members” (Richmond 523). However, this practice can have disastrous implications on the survival and future of the business. The “decision-making process should also be taken into consideration” (Eisner and Cohen 35). The business agreement should indicate how every decision will be made. This approach will ensure various decisions are made in a proper manner. A proper decision-making process will always ensure the consulting firm runs smoothly.

A partnership business “can become troublesome when one person dies or leaves the company” (Richmond 527). That being the case, a proper agreement will be required before starting the firm. The agreement will indicate how the other two partners will manage the business. Business partners “might fail to agree over certain issues” (Gage 53). Any form of disagreement can make it impossible for the business to run smoothly. It will therefore be appropriate to have a clause indicating how every conflict will be resolved. These agreements and considerations will be vital towards the continued performance of the firm.

Management Structure

The nature of management determines the success of every business organization. Partnerships should also be managed properly in order to emerge successful. A proper management structure should be defined before starting the company. The structure will ensure every partner has his or her unique leadership roles. The structure will also promote the level and nature of decision-making. Problems will also be resolved in a timely manner (Sweo and Pate 69). The structure will also encourage every employee to focus on his or her duties. The three partners will also have their distinctive roles. They should also work tirelessly in order to make the company successful.

Business Plan

A proper business plan will definitely make the proposed partnership successful. After indicating the roles and responsibilities of every partner, the next important thing will be to outline the specific aspects of the business. The partners will also use the plan to identify new opportunities and strengths that can make the company more profitable (Sweo and Pate 103). A good business plan will ensure the company realizes its business potentials. The business plan should also propose the most appropriate marketing strategies. The plan will therefore make it easier for the partners to make accurate decisions, address various problems, and focus on the best business outcomes. It is agreeable that the partnership business will be profitable.

Market Analysis

The current situation shows that the market is promising. The partners have already managed to win a contract. Many companies will also be in need of consulting services in the coming years. Although the number of similar companies is increasing steadily, the agreeable fact is that the firm will be able to offer outstanding consulting services (Sutton and Geddes 28). The partners also possess the best entrepreneurial and business skills. Such competencies will make it easier for them to emerge successful. The firm should also focus on emerging industries in order to have a sustainable business.

It will also be necessary to consider new opportunities in the market after forming the partnership. This analysis will make it possible for the leaders to identify new practices and incentives that can eventually make the firm more profitable. It will therefore be appropriate to form the partnership in order to achieve the best business objectives. A proper advertising strategy will also be required in order to deal with competition (Sutton and Geddes 52). The company will also be able to inform more clients about its superior services. The “approach will also make it easier for the business to identify new market segments and opportunities” (Eisner and Cohen 34). These practices will safeguard the company’s future and also make it more successful.

Business Growth

The other important thing to consider is the ability to expand this company. The success of the proposed partnership will depend on the commitment of the members. The members should focus on different opportunities and locate new clients (Richmond 542). The business should improve its services in order to remain profitable. It will also “be appropriate to offer support systems and feedbacks to every client” (Sutton and Geddes 52). The company will grow exponentially within the next few years because the number of customers is growing steadily.

Conclusion

The proposed partnership business will be successful. Many individuals and companies are currently in need of different consulting services. The company will offer quality consulting services in order to support its clients. The identified contract shows clearly that the company will be able to attract more clients. It will also be appropriate to have a proper partnership agreement. This agreement should become the backbone of the company. The agreement will ensure every person focuses on the best goals and activities (Sutton and Geddes 93). Every decision in the firm will also be made in a professional manner. In conclusion, the decision to form the proposed partnership is plausible. The partners will eventually achieve their business potentials. The partners will also use their competencies to provide evidence-based consulting services to every client. The above analysis shows clearly that the partnership can succeed if every person focuses on the best outcomes.

Works Cited

Clifford, Denis, and Ralph Warner. Form a Partnership: The Complete Legal Guide. New York: Nolo Press, 2012. Print.

Eisner, Michael, and Aaron Cohen. Working Together: Why Great Partnerships Succeed. New York: HarperBusiness, 2012. Print.

Gage, David. The Partnership Charter: How To Start Out Right With Your New Business Partnership. New York: Basic Books, 2004. Print.

Richmond, Douglas. “The Partnership Paradigm and Law Firm Non-equity Partners.” Kansas Law Review 1.1 (2010): 507-551. Print.

Sutton, Garrett, and Cindie Geddes. How to Use Limited Liability Companies and Limited Partnerships. New York: Success DNA, 2009. Print.

Sweo, Robert, and Sandra Pate. International Business: A Practical Approach, New York: CreateSpace Independent Publishing Platform, 2014. Print.

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