Strong partnership agreement with built-in exit strategy

Assignment Help Operation Management

Reference no: EM132236248

Create a strong partnership agreement with a built-in “exit” strategy. ( Any company) ( short Answer for each)

What to do: Imagine that you are an entrepreneur considering pooling your talents and resources with another entrepreneur to create a consulting firm specializing in setting up websites for business clients. You each bring different skills to the table. You need to create a partnership agreement that makes sense for both of you.

One of you will put more money into the operations; the other will put in more time. Neither of you will take a salary until you begin to make a profit.

1. First, list all the resources you’re committing to the company. Include funds, time, and all other resources you’ll contribute.

2. List the respective roles and responsibilities each of you will undertake. Who will be responsible for which activities in the company?

3. Determine how you will make decisions. Will either of you be able to make decisions without the other?

4. Specify how much time each of you will put into the business each week. What happens if one of you doesn’t put in the time you’ve committed to?

5. Establish how you’ll handle the company’s money. Who will be able to make spending decisions? Who will be able to make withdrawals or transfers from bank accounts?

6. Make decisions regarding the following issues:

a. Have you agreed upon a business plan? A future growth strategy? Are you in agreement on how big you want the company to be?

b. What happens if one of you decides to leave the company?

c. What happens if one of you doesn’t perform adequately?

d. What happens if you no longer want to work together? How will you dissolve the company? What happens with any remaining assets—including the customer list and active accounts?

e. Can one of you buy the other out? If so, how will the value of the company be determined? Will you have a buy-sell agreement in place?

7. Finally, draw up a partnership agreement that spells all this out. (You may use resources from the book or google sample agreements too)

8. Discuss all the other steps you’ll take, both individually and jointly, before you sign the agreement. Include getting an attorney to review the agreement.

9. Lastly, explain why you think you have created an agreement that works for both of you.

Reference no: EM132236248

Questions Cloud

High quality is synonymous with high price or high cost : To many people, high quality is synonymous with high price or high cost. Pick two functionally similar products that compete in very different markets

Ordering cost is which type of cost : Ordering cost only consists of the shipping cost from supplier to customer. Ordering cost is which type of cost?

Creative-critical thinking skills to synthesize information : Use creative and critical thinking skills to synthesize information on either of the Issue:

What is meant by competitive profile matrix : Explain how externalities may lead to market failure. What is meant by "A Competitive Profile Matrix (CPM)"? How does it relate to a company's strategy?

Strong partnership agreement with built-in exit strategy : Create a strong partnership agreement with a built-in “exit” strategy. What happens if one of you decides to leave the company?

Nonalcoholic beverage producer thirsting for pile of market : Diamond Drinks and Beverages is an upcoming nonalcoholic beverage producer thirsting for a pile of the market.

Collective understanding of topic of network connectivity : Make sure that whatever you choose betters our collective understanding of the topic of network connectivity.

About good decision making process in the west : Describe the views and assumptions about a "good" decision making process in the West.

What should you do and what is the risk-adjusted value : If you are risk-averse and have a risk tolerance of $1,500, what should you do and what is the risk-adjusted value?

User Account

All Pages