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What is a 'Partnership'?

A partnership is an agreement in which two or more parties are involved in the management and operation of the business. It can be of two types such as limited liability partnership and a general partnership commonly known as unlimited liability partnership in which the liability of the partners are unlimited and all the partners are held responsible for the misconduct of any one partner. Some of the partners are also known as silent partner who is not involved in the management and day to day activities of the business.

Sometimes being in a partnership can cause bitter feelings which will be an obstruction in the running of business hence it is important for the partners to be unbiased and accept each other’s point of view which will help in the profit of the business.

It has been seen that partnership generally produces good results because there is a loyalty towards each other and the information flows freely among the partners.

What is Partner Relationship Management?

Partner Relationship Management (PRM) is the methodologies and strategies used for improving the relationship of the partners in the business. It is to understand the relationship and satisfying the needs of the other partner, in order to make the business profitable the foremost thing is to understand the relationship because the end results will only be achieved when there is trust, loyalty, communication and good decision is there in the business which will be beneficial for the all the partners and also helps in reducing conflict.

What does a Business needs to make profit?

In order to make profit business needs good people with good behavioral skills. Communication is the main key to the success , there should be interaction among all the partners and all of them should be aware of the material facts. There should be trust among all the partners and these abilities will help in individual success as well as achieving business goals. With these skills positivity in the business increases and reduction in the bad behavior is seen. Thus it is seen that when you have been into partnership you will definitely possess these qualities. Let us see how does partnership clarity at an early stage increases the immunity of a person.

How does Partnership clarity at an Early stage helps in increasing your Immunity?

Every Manager wants that his employee should possess some sort of quality, but how are these qualities developed..This Article analyses that how being in Partnership at an early stage helps the individual to possess certain qualities or immunity which will him in the long run benefit in all possible manner.

 Being Accountable - In a limited liability partnership all the partners are responsible for their misconduct hence they have to be very careful in dealing with any of the activities . Being in partnership makes all the partners responsible and before doing any work they need to be careful and think before doing any kind of task, hence it is seen that partnership makes them accountable person for their tasks.

 Resourcefulness - Being a resourceful person is all everyone wants. It means being independent and coming up with the best solution to all the problems and applying mind for the steps that needs to be taken in order to accomplish the work. Partners learn to be independent as they have to manage the day to day activities and management and if they don’t then they will be held liable for their own acts.

 Openness to sharing ideas and experiences - In order to sustain a profitable business all the partners should share their ideas , view and their opinion with regard to any problem as two brains are always better than one. It is seen that when the ideas are being shared there is an interaction among all of them and the best opinion is considered to be the best solution. Thus partnership helps in making the person open-minded and helps him to adapt to the changes.

 Sharing the burden - Partnership teaches them to share the burden. In case of Unlimited liability partnership even if any misconduct or negligence is done by any one of the partners all the partners are held liable and have to equally pay all the debts , but cannot blame each other as its a partnership and it is based on previously agreed terms and conditions.

 Self-awareness- One of the most important quality that an employee should have is he should be self-aware. Employee should know where their strength lies and what are their weak points. In partnership every partner possess this quality as it is very important to know at what they are best and what are their specialized areas in which they can preform their tasks and make best efforts to achieve the goals. Partnership also makes a person work on his weak points and how to tackle if any problems arises.

 Developing Trust- Developing trust is one of the crucial point in the business. Each partner needs to trust on the other , as the name suggest “Partnership” it clearly means that there should be nothing hidden from the other partner. Free flow of information should be there and no sort of communication gap should be there. Each of them should rely upon each other and accept their point of view. Listening also plays a vital role, one should always listen to the other views or opinions as it helps in developing trust and one can also gain detailed information in that respective area. If there is trust among all the partners then it will help in huge profit and build their individual relations as well.

 Reduce Conflict- Conflict is the main reason why some business fails. When there is a conflict of opinion between two partners there is no point in further carrying on the business. Hence if you are in a partnership you need to reduce the conflict. The main reason for conflict is conflict of opinions and they don’t want to accept each other point of view, or they feel that they are being treated misunderstood. The best way to reduce the conflict is to communicate with each other , listen to each other, sit together and discuss the matter and to know what the other partner wants.Hence if Partnership clarity is there in the early stages then one seems to possess these all qualities.

Problems that arises when there is no Partnership clarity in the Early stages:-

 Differences in philosophies or work styles:- Clarity in Early stage Partnership teaches you to work in the same manner which will be beneficial for the business and will help in the maximization of the profit. But when there is no clarity it seems to create many problems, it is generally seen that there arises difference in the philosophies as none is agreeing to accept each other opinion which will result in conflict.

Hidden Facts:- Clarity in Partnership helps in developing trust between the partners as there is free- flow of information and one has to rely upon each other. There is no hidden facts from each other as all are supposed to know every part of the business. But if there is no clarity in partnership in the early stages it is generally seen that some of the material facts in the business are hidden from one another in order to make individual profits.

 Failure to communicate:- Partnership in the early stages teaches to communicate with the partner , think upon the subject matter and helps in better decision making. Thus without clarity there seems a problem or failure to communicate as partners don’t want to communicate or share their ideas and think that they are superior from each other.

 Lack of commitment and unwilling participants:- In a Partnership equal commitment from all the partners is needed as the profits and the benefits are to be shared equally.But Partnership when done in a later stage creates an unwilling participants from the partners and there is no commitment seen from their side.