The Risk in Having Partnerships

DEDHAM, Mass. - Aug. 5, 2016 - PRLog -- Part-time Chief Financial Officer, Michael Barbarita, warns potential business owners about the many risks of starting a business with a partner.  If you are thinking about going into business with a partner, he/she must have the following traits:

·He or she must be logical - Sometimes the best business decisions puts one partner at a disadvantage.  This partner must be logical and put the business in front of the needs of himself/herself.

·He or she must be at peace with all decisions - Even though it is healthy to have constructive arguments, eventually a decision must be made and the dissenting partner has to make his/her peace with the decision.

·He or she cannot be bitter if they get diluted - Partners who do not want to or can't invest more money into their business can't become bitter once their stock gets diluted.

·He or she must be ready for a tough grind - Partners must prepare themselves for hard times in their business (like lower salaries and cash flow problems).

·He or she must understand that only one person can run the company - It is a good idea for one partner to take the lead role in the business.  Sometimes this can make the other partner feel slighted and bitter.

·He or she must understand that not everyone's salary will be equal - Everyone involved brings a different skill to the table and some are just more valuable than others.

The entire blog post can be found at:

http://cfo-chief-financial-officer.blogspot.com/2008/10/risk-in-partnerships.html