Please tell us more about how partnerships could be critical to the success of your innovation
Operating a business as partnership has benefits, but it is also fraught with potential problems. The benefits of partnership include the ability to share the workload as well as the emotional and financial burdens of the enterprise and to buy management talent that might otherwise break the budget. Of course decisions making is more complicated in partnerships because leadership is shared, and the dilution of equity must be considered. While some of the difficulties of partnership are financial in nature, most are relational-for example, coping with a partner's dishonesty or dealing with differing priorities. Many entrepreneurs have learned about partnership the hard way-from "the school of hard knocks." If trust is critical to the success of a partnership, then wouldn't it be best t look first to friends as potential partner? Not necessarily. Valued relationship can take a quick turn for the worse when a business deal gets rocky, and a Dr. Jekyl friend can sometimes transform into a Mr. Hyde business associate when money enters the picture. Of course, the best way to determine if you can work well with another person is to actually give the partnership a try before finalizing the deal.
It is important that partners be "on the same page" when it comes to forming the business concept they hope to develop together. This takes time, patient, and a lot of conversation. Needless to say, the partnership did not last long. Some of the specific matters you should discuss before joining forces include the expectation of all partners(contributions of time, money, expertise, etc.), planned division of work, anticipated vacation time, and the division of profits and losses.And remember, the stakes are high: a minor business deal can quickly ruin a very important friendship.
We would like to learn more about how your initiative is financially supported. Please explain your business plan/revenue model
Our Financial plan is: The start-up cost $99,000
building improvement is $20,000
Machinery and equipment is $44,000
Inventory is $10,555
licenses and permits are $1,000
Working capital is $35,000
Employees Salaries is $48,492
Total project uses are $257, 555.000
Our goal is to be a profitable beauty and barber school beginning in the very first month of our grand opening. The beauty school revenue will be generated by of tuition fees from students,continuing education classes products and materials sales. The business has been financially supported by husband and family members.