Tags |
|
|
Links |
|
|
Digg it UP - 14 Reasons Why 80 Percent Of New Business Partnerships Would Fail Within Their First 5 Years Of Exis
According to most salary researchers and guides, getting your MBA can mean a $10,000 to $30,000 salary increase, but don't let the numbers get you too excited about the possibilities; there are still other factors to consider when calculating the potential for and the size of a salary increase if you get your MBA.TimingTiming is everything when you're trying to get your MBA. If you get the degree too early in your career, you may have trouble finding a job that offers a salary comparable to what you deserve for your advanced degree. At the same time, if you wait too late, you simply may not need it or may not be able to find an employer willing to pay for you to go back to school.A Free DegreeThe advantage to working for one company for a while is that they may be willing to pay for your degree. Then, not only will you be getting a pay raise, but also you'll be getting a free degree out of the bargain that will come in handy in the future. Just realize that your current employer will want you to promise to stay for a certain amount of time or they won't pay for the degree. If you do leave the company early, you'll owe them the cost of at least part of your tuition and sometimes even a hefty interest payment. So, if you're thinking about leaving soon, think again about allowing the company to pay for your degree.Get Some
In one of partnerships that I formed, neither my partner nor I managed to create a business that actually enabled one to make his living before we formed the business; in other words, both severally lacked experience. Retrospectively speaking, we severely lacked problem solving skills, and this made our life hard.
8. Family problem
Family matters ought to be priorities, but they should not interfere with the business. Obviously they do interfere to an extent, but partners ought to prepare to minimize the number of problems and mitigate the effect of each problem.
One of my business partners was married, and to describe briefly, he maintained his marriage in such a way that it only became a liability to him; he ended up spending too much time to maintain his marriage and too little time for the business. While family matters are extremely important, this was a very serious problem for the partnership because he barely spent any time for the business. Furthermore, the problem was largely created by him; it was not an accident such as sickness and traffic accident. Therefore, it was definitely a problem that he created for the business.
9. Too much emphasis on the idea
One of trends in late 90s and 2000s in US was that the idea is what is so valuable; execution comes second. I get the impression that
Every business loves young and ambitious employees. They offer great value to a business and can often come up with new ideas. I would offer you the following advice:* Find a hole and jump into it. Basically find something that will of value to your company and make yourself the expert of “goto guy” for that service etc. Think of things like understanding a particular market such as young single men, or maybe be good at thinking up jingles, slogans etc. Anything that will have people coming to you to ask for your advice or including you on your team. You must be careful that you are not only known for this otherwise they will promote you so that they will not lose you! * Keep your eyes open and your mouth shut. Take every opportunity to learn things by observing others. Try not to be seen as the upstart who keeps asking questions at awkward times. People will understand that you need to ask questions at your stage in your career, but try to make them insightful and at appropriate times. Don’t ask questions about things you can easily find out yourself, but don’t take too long on completing tasks because you don’t know what you are doing.* Find a mentor.Sometimes people are recommended for a particular role or position. Often a more experienced colleague will do this for you. Try a
1. Profit sharing and ownership
The profit and the ownership should just be divided into 50 - 50 unless there is a very good reason why it should be otherwise. If there are three partners, then the profit and the ownership should be divided into 34 - 33 - 33 or close to that. If the profit and the ownership are not divided equally, then, in reality, the relationship becomes that of an employer and an employee(s); it is not a partnership. Yet pretending that it is only does harm to the relationship which has the name "partnership."
Sharing the profit and dividing the ownership were very serious problems in one of partnerships that I formed. My partner assumed more than 50% of the ownership initially and I did not disagree, but retrospectively speaking, there was no good justification; this became a very serious problem later on. The profit sharing was not clearly defined; more specifically, how exactly two share incoming profit from different sources according to our contributions was not clearly defined; this also became a very serious problem later on.
2. Skill set problem
Two skill sets should compliment each other; otherwise, there is really no merit of forming a partnership. Also both skill sets have to be equally valuable to the partnership business. If one is clearly more important than the other, then the purpose of forming the partnership has to be questioned; this can make the partnership very unstable.
IT skills were desired skills in the business in one of partnerships that I formed. Especially, IT skills were essential at the very beginning (and it turned out that the partnership was maintained only at this beginning stage; business operations that were proposed to take place at later stages have never been implemented by neither my former partner nor I), and those skills turned out to far more important than other skills. However, only I had those skills, and this made the partnership very unstable.
3. Honesty
Partnership cannot be maintained without honestly. This seems so obvious, but some people apparently do not understand this.
Retrospectively speaking, this is the main reason that failed one of partnerships that I formed. My partner lied too much; there were reasons, but there were no justifications.
4. Communication problem
A lot can be done using email and phone, but neither is a perfect communication tool. Without the face-to-face physical communication, maintaining a partnership is extremely difficult. Online collaborations are becoming more and more popular, but forming partnerships is much more difficult than just collaborating.
My partner and I used only email and phone in one of partnerships that I formed. Although we knew each other and lived in a same city at one time, we had a great difficulty maintaining the partnership.
5. Lack of transparency
Sharing information can become difficult oftentimes because some information can be very personal. However, as time passes, more and more information should be shared, not less and less. If, as time passes, less and less information is shared, then that shows that there is a problem of lack of transparency. Lack of transparency is deadly when you form a partnership.
- The following problems can arise not only in businesses owned and operated by partners but also in businesses owned and operated by single persons, although they can harm partnerships greatly.
6. Funding problem
Lack of funding oftentimes becomes a very serious problem. Especially, if the problem is so serious that neither you nor your partner can get any financial support from the partnership business, then it can damage the partnership severely.
There was a very serious funding problem in one of partnerships that I formed. In particular, the business was unable to provide any financial support to either of us for over a year; this made the partnership very difficult. If this had been a kind of business that we were not required to spend so much time at the beginning and we could grow gradually, then the partnership might not have had to suffer, but this was not the case; this was a kind of business that we were required to spend a lot of time at the beginning while there was no income coming in.
7. Lack of experience
Experience teaches you a lot and you learn how to solve various problems as you experience more and more. Without it, you often have hard time solving various problems.
In one of partnerships that I formed, neither my partner nor I managed to create a business that actually enabled one to make his living before we formed the business; in other words, both severally lacked experience. Retrospectively speaking, we severely lacked problem solving skills, and this made our life hard.
8. Family problem
Family matters ought to be priorities, but they should not interfere with the business. Obviously they do interfere to an extent, but partners ought to prepare to minimize the number of problems and mitigate the effect of each problem.
One of my business partners was married, and to describe briefly, he maintained his marriage in such a way that it only became a liability to him; he ended up spending too much time to maintain his marriage and too little time for the business. While family matters are extremely important, this was a very serious problem for the partnership because he barely spent any time for the business. Furthermore, the problem was largely created by him; it was not an accident such as sickness and traffic accident. Therefore, it was definitely a problem that he created for the business.
9. Too much emphasis on the idea
One of trends in late 90s and 2000s in US was that the idea is what is so valuable; execution comes second. I get the impression that
Like any skill set, interviewing takes practice to be successful. Many professionals feel that their work experience and skills will speak for themselves in an interview, this is false. The experience and skills on a resume will get a person short listed, but the interview is a means of selling yourself to a potential employer in-person. We have seen numerous interviews end quickly when the candidate can not answer questions clearly, can not provide examples from previous work experience and talk about his/her resume. The premise behind being successful in the interview is being prepared.What is the most common type of interview?Behavioral interviewing is that the most accurate predictor of future performance is past performance in similar situations. Behavioral interviewing is usually 55% predictive of future past job behavior, while traditional interviewing is only 10% predictive. Behavioral-based interviewing provides a more objective set of facts to make employment decisions than other interviewing methods. Traditional or “open ended” interview questions ask you general questions such as "Tell me about yourself." The process of behavioral interviewing is much more probing and works very differently.Employers use the behavioral interview technique to evaluate a candidate's experiences and behaviors so they can determine the applic
Sharing the profit and dividing the ownership were very serious problems in one of partnerships that I formed. My partner assumed more than 50% of the ownership initially and I did not disagree, but retrospectively speaking, there was no good justification; this became a very serious problem later on. The profit sharing was not clearly defined; more specifically, how exactly two share incoming profit from different sources according to our contributions was not clearly defined; this also became a very serious problem later on.
2. Skill set problem
Two skill sets should compliment each other; otherwise, there is really no merit of forming a partnership. Also both skill sets have to be equally valuable to the partnership business. If one is clearly more important than the other, then the purpose of forming the partnership has to be questioned; this can make the partnership very unstable.
IT skills were desired skills in the business in one of partnerships that I formed. Especially, IT skills were essential at the very beginning (and it turned out that the partnership was maintained only at this beginning stage; business operations that were proposed to take place at later stages have never been implemented by neither my former partner nor I), and those skills turned out to far more important than other skills. However, only I had those skills, and this made the partnership very unstable.
3. Honesty
Partnership cannot be maintained without honestly. This seems so obvious, but some people apparently do not understand this.
Retrospectively speaking, this is the main reason that failed one of partnerships that I formed. My partner lied too much; there were reasons, but there were no justifications.
4. Communication problem
A lot can be done using email and phone, but neither is a perfect communication tool. Without the face-to-face physical communication, maintaining a partnership is extremely difficult. Online collaborations are becoming more and more popular, but forming partnerships is much more difficult than just collaborating.
My partner and I used only email and phone in one of partnerships that I formed. Although we knew each other and lived in a same city at one time, we had a great difficulty maintaining the partnership.
5. Lack of transparency
Sharing information can become difficult oftentimes because some information can be very personal. However, as time passes, more and more information should be shared, not less and less. If, as time passes, less and less information is shared, then that shows that there is a problem of lack of transparency. Lack of transparency is deadly when you form a partnership.
- The following problems can arise not only in businesses owned and operated by partners but also in businesses owned and operated by single persons, although they can harm partnerships greatly.
6. Funding problem
Lack of funding oftentimes becomes a very serious problem. Especially, if the problem is so serious that neither you nor your partner can get any financial support from the partnership business, then it can damage the partnership severely.
There was a very serious funding problem in one of partnerships that I formed. In particular, the business was unable to provide any financial support to either of us for over a year; this made the partnership very difficult. If this had been a kind of business that we were not required to spend so much time at the beginning and we could grow gradually, then the partnership might not have had to suffer, but this was not the case; this was a kind of business that we were required to spend a lot of time at the beginning while there was no income coming in.
7. Lack of experience
Experience teaches you a lot and you learn how to solve various problems as you experience more and more. Without it, you often have hard time solving various problems.
In one of partnerships that I formed, neither my partner nor I managed to create a business that actually enabled one to make his living before we formed the business; in other words, both severally lacked experience. Retrospectively speaking, we severely lacked problem solving skills, and this made our life hard.
8. Family problem
Family matters ought to be priorities, but they should not interfere with the business. Obviously they do interfere to an extent, but partners ought to prepare to minimize the number of problems and mitigate the effect of each problem.
One of my business partners was married, and to describe briefly, he maintained his marriage in such a way that it only became a liability to him; he ended up spending too much time to maintain his marriage and too little time for the business. While family matters are extremely important, this was a very serious problem for the partnership because he barely spent any time for the business. Furthermore, the problem was largely created by him; it was not an accident such as sickness and traffic accident. Therefore, it was definitely a problem that he created for the business.
9. Too much emphasis on the idea
One of trends in late 90s and 2000s in US was that the idea is what is so valuable; execution comes second. I get the impression that
We are probably all aware at this point in our lives that many illegal aliens work at carwashes and even with the pretend crack down on illegal immigration and the outrage of citizens in the United States of America it is obvious that nothing has changed at the carwashes, they are still hiring illegal aliens.This has been going on for decades and having been in the carwash industry myself, I was always completely appalled by these violations our competition was committing against our immigration laws. You see in my travels I have also visited over 3000 coin-op car washes, 700 full service car washes, 3800 roll-over car washes, and even had my Corporate Command Center washed at over 100 different truck washes. Personally I have viewed the units of over 1000 plus mobile washing units and visited every other major manufacturer of washing equipment. I can tell you although my competition in the mobile carwash business generally did not hire illegal aliens, some where illegal aliens themselves.And the fixed site carwash owners, well let’s just say most of them used illegal alien labor. And as far as “used” it was really closer to “Exploited” as they willfully and knowingly and continuously broke our immigration laws.We can stop this abuse, you need to call your local Border Patrol Office and/or INS office and demand that they get their b
3. Honesty
Partnership cannot be maintained without honestly. This seems so obvious, but some people apparently do not understand this.
Retrospectively speaking, this is the main reason that failed one of partnerships that I formed. My partner lied too much; there were reasons, but there were no justifications.
4. Communication problem
A lot can be done using email and phone, but neither is a perfect communication tool. Without the face-to-face physical communication, maintaining a partnership is extremely difficult. Online collaborations are becoming more and more popular, but forming partnerships is much more difficult than just collaborating.
My partner and I used only email and phone in one of partnerships that I formed. Although we knew each other and lived in a same city at one time, we had a great difficulty maintaining the partnership.
5. Lack of transparency
Sharing information can become difficult oftentimes because some information can be very personal. However, as time passes, more and more information should be shared, not less and less. If, as time passes, less and less information is shared, then that shows that there is a problem of lack of transparency. Lack of transparency is deadly when you form a partnership.
- The following problems can arise not only in businesses owned and operated by partners but also in businesses owned and operated by single persons, although they can harm partnerships greatly.
6. Funding problem
Lack of funding oftentimes becomes a very serious problem. Especially, if the problem is so serious that neither you nor your partner can get any financial support from the partnership business, then it can damage the partnership severely.
There was a very serious funding problem in one of partnerships that I formed. In particular, the business was unable to provide any financial support to either of us for over a year; this made the partnership very difficult. If this had been a kind of business that we were not required to spend so much time at the beginning and we could grow gradually, then the partnership might not have had to suffer, but this was not the case; this was a kind of business that we were required to spend a lot of time at the beginning while there was no income coming in.
7. Lack of experience
Experience teaches you a lot and you learn how to solve various problems as you experience more and more. Without it, you often have hard time solving various problems.
In one of partnerships that I formed, neither my partner nor I managed to create a business that actually enabled one to make his living before we formed the business; in other words, both severally lacked experience. Retrospectively speaking, we severely lacked problem solving skills, and this made our life hard.
8. Family problem
Family matters ought to be priorities, but they should not interfere with the business. Obviously they do interfere to an extent, but partners ought to prepare to minimize the number of problems and mitigate the effect of each problem.
One of my business partners was married, and to describe briefly, he maintained his marriage in such a way that it only became a liability to him; he ended up spending too much time to maintain his marriage and too little time for the business. While family matters are extremely important, this was a very serious problem for the partnership because he barely spent any time for the business. Furthermore, the problem was largely created by him; it was not an accident such as sickness and traffic accident. Therefore, it was definitely a problem that he created for the business.
9. Too much emphasis on the idea
One of trends in late 90s and 2000s in US was that the idea is what is so valuable; execution comes second. I get the impression that
The interview starts at the time you have entered into the room. They form an opinion on you before you started answering their questions. You already judged by appearance, smile or your nervous look and posture.Once look back for your favorite lectures and teachers, you like their lectures and they are memorable because they are informative or they are animated. In the same way while you are answering in an interview be informative and animated , I doesn’t mean that you have to entertain the interviewer by playing jokes you have to express your views in an animated way by showing your hand instead of placing them on your laps. If you say you are excited about the prospect of working for this company but don't show any enthusiasm, your message will probably fall flat. So smile and show some energy.Don’t underestimate the value of smile, it makes you fell better about yourself.Simple thingsThe Handshake: This is the first encounter with the interviewer, your handshake should be firm and your hand should be dry and warm. The palm is very sensitive for the temperatures control; try to run cold water on your hands if your feeling tensed.Your Posture: Stand and sit erect show some energy and enthusiasm, A slouching posture looks tired and uncaring, check yourself out in a mirror.Eye Contact: See into the eyes of the i
- The following problems can arise not only in businesses owned and operated by partners but also in businesses owned and operated by single persons, although they can harm partnerships greatly.
6. Funding problem
Lack of funding oftentimes becomes a very serious problem. Especially, if the problem is so serious that neither you nor your partner can get any financial support from the partnership business, then it can damage the partnership severely.
There was a very serious funding problem in one of partnerships that I formed. In particular, the business was unable to provide any financial support to either of us for over a year; this made the partnership very difficult. If this had been a kind of business that we were not required to spend so much time at the beginning and we could grow gradually, then the partnership might not have had to suffer, but this was not the case; this was a kind of business that we were required to spend a lot of time at the beginning while there was no income coming in.
7. Lack of experience
Experience teaches you a lot and you learn how to solve various problems as you experience more and more. Without it, you often have hard time solving various problems.
In one of partnerships that I formed, neither my partner nor I managed to create a business that actually enabled one to make his living before we formed the business; in other words, both severally lacked experience. Retrospectively speaking, we severely lacked problem solving skills, and this made our life hard.
8. Family problem
Family matters ought to be priorities, but they should not interfere with the business. Obviously they do interfere to an extent, but partners ought to prepare to minimize the number of problems and mitigate the effect of each problem.
One of my business partners was married, and to describe briefly, he maintained his marriage in such a way that it only became a liability to him; he ended up spending too much time to maintain his marriage and too little time for the business. While family matters are extremely important, this was a very serious problem for the partnership because he barely spent any time for the business. Furthermore, the problem was largely created by him; it was not an accident such as sickness and traffic accident. Therefore, it was definitely a problem that he created for the business.
9. Too much emphasis on the idea
One of trends in late 90s and 2000s in US was that the idea is what is so valuable; execution comes second. I get the impression that
Some of us scoff at subliminal advertising techniques. We like to think our minds are entirely logical and immune to the influence of others. This just isn't true, as any good salesman knows. After studying the subject for some time, I have come to accept that I will not just buy things, but I will be "sold" things, even by way of subliminal techniques.What I CAN do is learn the techniques that are used on me. Then, if I want to, I can use them too, when I believe it is ethical to do so. More importantly, I can protect myself from these techniques, or at least be sold the RIGHT things. Want to do the same? Would you like to learn a few subliminal advertising techniques? Start with the following sales pitch:"Does public speaking make you nervous? What if it was easy? Imagine standing at the podium, knowing exactly what to say to make them love you. Wouldn't that feel great? Just apply our simple methods, and you'll have that power. Use the form below to order right now."Okay, let's dissect the sales pitch, sentence-by-sentence.Sentence #1 : Does public speaking make you nervous? This gets the reader to say yes, which is habit forming. Getting a prospect to say yes is a classic old technique that still works. It also introduces the problem, for which the solution is coming.Sentence #2 : What if it was easy? This su
In one of partnerships that I formed, neither my partner nor I managed to create a business that actually enabled one to make his living before we formed the business; in other words, both severally lacked experience. Retrospectively speaking, we severely lacked problem solving skills, and this made our life hard.
8. Family problem
Family matters ought to be priorities, but they should not interfere with the business. Obviously they do interfere to an extent, but partners ought to prepare to minimize the number of problems and mitigate the effect of each problem.
One of my business partners was married, and to describe briefly, he maintained his marriage in such a way that it only became a liability to him; he ended up spending too much time to maintain his marriage and too little time for the business. While family matters are extremely important, this was a very serious problem for the partnership because he barely spent any time for the business. Furthermore, the problem was largely created by him; it was not an accident such as sickness and traffic accident. Therefore, it was definitely a problem that he created for the business.
9. Too much emphasis on the idea
One of trends in late 90s and 2000s in US was that the idea is what is so valuable; execution comes second. I get the impression that too many people believe this even today. Ideas are important, but nothing really takes place without execution; this has to be understood.
Both of my past business partners and I put too much emphasis on ideas. Retrospectively speaking, it was too naive to believe that great ideas would solve most problem including the financial problem, but it was almost silly to believe that.
10. Excessive Optimism
There is no doubt that you need to be optimistic about what you do; however, you cannot be too optimistic. For example, sales is essentially a number game, and when you speak to 10 potential customers, you can expect that a few of them are interested in your product or service. You can optimistically think that more than a few of them are interested in your product or service; you can also optimistically think that a few of them are going to buy your product or service. However, believing that all of them are going to buy your product or service is excessive optimism; it is unrealistic. Departure from the reality can only hurt your business.
11. Lack of dedication to work
It seems obvious that you need to dedicate yourself to your work in order to build a successful business, but quite a few people do not do this. They often spend too little time; they often say that they are working hard, but they are not doing that actually. Obviously, your business will not succeed unless you dedicate yourself to your work unless there is a miracle.
12. Drugs and alcohol
I have nothing against alcohol personally; I also personally believe that some drugs be de-criminalized. I do not take drugs but my personal opinion is that taking drugs is a personal choice at the end of the end; I'd even say that taking certain drugs is a civil right. However, I have only seen negative influence of drugs when it comes to business operations. When you run a business, you need to be clear-headed. A similar thing can be said about alcohol; there is nothing wrong with drinking with moderation, but you cannot really operate businesses effectively when you are drinking. Chatting about a few ideas over a couple of beers is ok, but serious decisions should not be made.
13. Sticking to a business model that does not work for too long
Patience is a virtue; however, your business ought to have a result if you work hard for a period of time. If not, something needs to change; also its business model ought to be reviewed and revised. You cannot just stick to a business model that does not work for too long.
14. Keep believing that you are a God, if not, THE God
It is very important that you have faith in you; your ability, your dedication, your intelligence, etc. You also have to have self-esteem and confidence. However, you cannot be believing that you are a God, if not, THE God. You cannot believe that you are a Howard Roark or Frank Lloyd Wright, either, unless you really are a Howard Roark or Frank Lloyd Wright. (Frank Lloyd Wright, an American architect, was one of the most prominent and influential architects in the world in the first half of the 20th century; his designs were revolutionary at the time, and he believed in his designs, and he was very independent. He had the courage to stand for them while he was not easily accepted. Howard Roark is the hero of the novel, "The Fountainhead", written by Ayn Rand and is loosely based on Frank Lloyd Wright.)
The list is not made to discourage you to form a partnership. However, you ought to understand potential problems if you plan to form a partnership. Many of problems can be eliminated before you form a partnership. Even eliminating all problems does not guarantee you to form a very successful partnerships or to build a very successful partnership with your business partner, but it should increase your chances.
HTTP = HTML link (for blogs, profiles,phorums):
<a href="http://www.diggitup.net/article/16631/diggitup-14-Reasons-Why-80-Percent-Of-New-Business-Partnerships-Would-Fail-Within-Their-First-5-Years-Of-Exis.html">14 Reasons Why 80 Percent Of New Business Partnerships Would Fail Within Their First 5 Years Of Exis</a>
BB link (for phorums):
[url=http://www.diggitup.net/article/16631/diggitup-14-Reasons-Why-80-Percent-Of-New-Business-Partnerships-Would-Fail-Within-Their-First-5-Years-Of-Exis.html]14 Reasons Why 80 Percent Of New Business Partnerships Would Fail Within Their First 5 Years Of Exis[/url]
Related Articles:
Getting to Know the Gatekeeper
Breakthrough for the Business Person: How to Overcome Career Disappointment and Create Your World
Bookmark it:
|