Business partnerships


Published on

Good Business Partnerships are what form the essence of a successful company. Choosing a right kind of partner is very much important for the successful running of a company. These slides tell about the various kinds of partnerships and of the various legal proceedings that need to be kept in mind before going ahead with the deal.

Published in: Business
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Business partnerships

  1. 1. Business Partnerships
  2. 2. • A partnership or an alliance that is formedwith business as the prime focus is a BusinessPartnership.• A Business Partner is the one with whom youform an alliance to work together anddistribute stakes over the company.• They might be people who’ve collectivelyworked on the idea or might have cometogether because of the need.• For example, one of the partners must havecome up with the idea and the other isfinancially sound and has affluent contacts.
  3. 3. • So, they form an alliance and sign a contractpertaining to the share in the company and itsrunning.• Examples of such partnerships are thosebetween the manufacturer and the vendor orbetween the softwaremanufacturer, hardware manufacturer andthe one who assembles the two.
  4. 4. Types of Partnerships• The first kind of partnership involves Investor-Entrepreneur.• The Entrepreneur comes up with an idea forthe startup company and approaches theInvestor for funds and the Investor in turntakes a percentage stake in the company.• They usually don’t interfere in the running ofthe company as long as they get their Returnon Investment (ROI).
  5. 5. • While Angel Investors offer the seed funds forcompanies, Venture Capitalists fundcompanies eyeing expansion.Utthishta is one such seed fund thatprovides seed funds to startup companiesin return for an equity stake in thecompany.
  6. 6. • The next kind of partnership is based onIntellectual Property (IP).• When a group of people come up with anidea, work on it and start a company, theychalk out a contract with their stakes keepingin view the finances they’d be giving and thesort of role they’d be playing in the company.• Such a kind of partnership usually involvesclose acquaintances. So the relation theyshare must be kept aside when forging analliance or a deal.
  7. 7. • Business Partnership also involves the comingtogether of companies, either while targeting asingle market or a merging of the companies.• This is mostly done to increase the strongholdthese companies have over the market or it couldbe a loose arrangement designed mostly toimpress the customers.• There could also be a cohesion wherein two ofthe companies might be partners with a thirdcompany but are highly aggressive towards eachother.
  8. 8. • Choosing the right kind of partner- be it aninvestor or a co-founder- is very muchimportant in the success of the startupcompany.• Ideally, the Partner’s professional skills shouldcomplement each other but not overlap toomuch.• Signing on an agreement prior to forming analliance is very much essential for the healthyrunning of the company, more so if the otherperson involved is a close acquaintance, familyor friend.
  9. 9. • Failing to do so might lead tomisunderstandings between the partnerssometimes culminating in divorce which is notgood both for the company and for therelationship they’d be sharing.• And with the ground rules laid down by thepartners, it is up to the partners to live bythem and make the company flourish.Have an idea? Think that it could be the next bigthing in the Indian Market? Click on the RedApply button and share your idea with us.
  10. 10. Contact Us•• Blog :• Slideshare:• Youtube:• Google +