Advantages and disadvantages of opening a store in partnership

Pro: The advantages outweigh the disadvantages

Supporting reasons:

The daily management of a partnership enterprise is easier

More sources of funds can be guaranteed

There are relatively few conflicts between the two sides

It is conducive to the integration of various resources

Management is more formal

Daily management is easier

As the saying goes, "One" Partners develop their specialties and skills with each other, just like the clever cooperation of many actors in a good play, which can not only further improve the management level of the enterprise, but also make the development prospect of the enterprise broader and better.

Ensure more sources of funds

In addition, partnership can ensure more sources of funds. Because everyone has limited funds, just like a bowl filled with water, no matter how full it is, it is just a bowl of water. If several people are in partnership, it is like two bowls of water, and two bowls together are always more than one bowl of water. With sufficient sources of funds, the scale, grade and grade of an enterprise will naturally have corresponding development potential, and it will be able to do more things. Therefore, the financing method of partnership can be said to be the best way for small and medium-sized restaurants to expand their operations and give full play to their potential.

there are fewer conflicts with each other

it is better for several people to partner. There are those who contribute and those who contribute. In the daily operation and management, the partners focus on different affairs, and there are relatively few conflicts with each other. As long as the partners are of good character and honest with each other, everything else is much easier to discuss.

favorable resource integration

opening a restaurant in partnership has many advantages compared with starting a business by one person. Typically, in addition to more sources of funds, it can better realize resource integration. These include the mutual utilization of social relations, the mutual integration of cooking technology and management know-how, the mutual supplement of production equipment and so on. As long as there are appropriate treatment methods, the integration of these resources can promote the rapid start and development of enterprises.

Management is more formal

Several people set up shops in partnership, and they can supervise each other in their daily operation and management, which not only fully promotes democracy, but also restricts each other. This can prevent one person from acting arbitrarily, and it is easier to implement standardized management, laying an important foundation for the development and growth of the cause.

Counterparty: the disadvantages outweigh the advantages

Supporting reasons:

There are obvious shortcomings

Unlimited debts

The life span of an enterprise is limited

Decentralized management power

It is easy to find good partners

Sufficient mental preparation

Of course, the shortcomings of partnership management also exist and are quite obvious. This requires every restaurant operator to have enough understanding and mental preparation for the shortcomings of partnership. Because for a business operator who has a long-term plan, he should guard against any influence.

Unlimited debts

There are unlimited debts in the partnership. Compared with the sole proprietorship, this kind of debt will have a more lasting and greater impact on the owners. A partner has the obligation of debt since the day he joined the cooperation. By the same token, a partner should not only pay his own debts, but also be responsible for paying the debts of other partners within the scope of all his property. Taking unlimited liability is a very serious risk for every partner.

The life of an enterprise is limited

There is still a time limit for partnership. The so-called finiteness of enterprise's existence time means the finiteness of enterprise's life. Because the form of partnership is that several partners jointly contribute to run the enterprise, therefore, the behavior of each partner, illness and illness will have an impact on the enterprise, and the death or bankruptcy of any partner will lead to the demise of the partnership.

management power is easy to disperse

partnership management power is dispersed. Due to the participation of partners, the management right of the enterprise must be decentralized. Relevant enterprise policies, capital planning, personnel management and development plans will all change. Power is scattered among partners, and differences of opinion are reflected.

it is difficult to unify the development ideas

Some readers who have experienced partnership have expressed their opinions: if there is a problem in opening a store in partnership, it is more likely to cause parting ways and even destroy the friendship for many years. The reader said that he had just stumbled in this respect. Although friendship still exists, friends and partners of seven years have become strangers since then. The factors that easily lead to the situation of parting ways are generally due to the inconsistent development ideas of the two, or the inconsistent business policies and other things in the general direction. It's better to disagree or disagree.

Good partners are hard to find

It doesn't matter whether it's good or bad for two people to open a restaurant in partnership. The key is that they share the same interests and can give full play to their respective strengths. However, it is really difficult to choose a good partner, often with less success and more failures. If you can't find a good partner, it is better to go it alone.

Intermediary: nine suggestions

1. Review partner conditions; 2. Matters to be specified in the partnership agreement; 3. Open a public bank account; 4. Expenditure and income are well documented; 5. Clarify the content of division of labor and cooperation; 6. Determine the profit share of operating income; 7. The odd number of partners is safe; 8. Communication is the most important.

review partner conditions

it is very important to sign an agreement if you plan to open a store in partnership. If handled well, disputes can be avoided well. To set up a partnership enterprise, the following conditions shall be met:

1. There are two or more partners, all of whom bear unlimited liability according to law; 2. There is a written partnership agreement; 3. Capital contribution actually paid by each partner; 4, by the name of the partnership; 5. Having business premises and necessary conditions for engaging in partnership operation

Matters to be specified in the partnership agreement

1. The name of the partnership enterprise and the location of its main business premises; 2 the purpose of the partnership and the business scope of the partnership; 3. Name and domicile of the partner; 4. The way and amount of capital contribution by the partners and the time limit for paying the capital contribution; 5 profit distribution and loss sharing methods; 6. Implementation of partnership affairs; 7, the occupation and annealing related matters; 8. Matters related to the dissolution and liquidation of the partnership; 9. There should be clear provisions on the liability for breach of contract.

the partnership agreement may specify the term of operation of the partnership and the way to resolve disputes among partners. The partnership agreement must be signed and sealed by all partners before it takes effect.

Opening a public bank account

There are both advantages and disadvantages in opening a store in partnership. If you don't coordinate well, you may not even be friends. Of course, it is better to open a shop alone. However, if it is necessary to open a store in partnership, it is best to have a public bank account before planning to open a store, and deposit the funds to be invested and operated in the bank in accordance with the agreed agreement. Both parties have a number in mind.

expenditure and income are documented

the use of funds must be transparent. In order to avoid future disputes, do a good job in the daily management of accounts, and try to make sure that the expenditure and income of money are well documented. Having evidence is also conducive to mutual supervision.

define the content of division of labor and cooperation

the content of division of labor and cooperation between partners must be clear. Determine who should do what work, how to deal with problems through consultation, etc. Investment in equity is only used as the standard of dividends. If two people discuss big and small affairs, sometimes it will delay time and spoil things. Therefore, it is necessary to specify that one person makes decisions in daily chores, or appropriately delegate everyone's power. In the event of major events, such as adding shares and partners, all issues that may affect the major interests of the store must be adopted on the basis of consensus between the two. Otherwise, it is easy to affect the interests of the weaker party.

determine the profit sharing of operating income

how to share the profit of operating income should also be made clear. These must be negotiated before opening. The rest can only be done and watched. The most important thing is that two people understand and trust each other.

It's safe to have an odd number of partners

The number of partners in a partnership is also very particular. Only three or an odd number of partners can be safe, so that the partners can supervise each other. Of course, this should also take into account the capital contribution. Enterprises speak with funds. When the number of people is in a secondary position, the distribution of funds will be very important. If you have an absolute advantage, of course, the enterprise is up to you.

communication is the most important

first of all, partners should be firm in their beliefs and unite as one. If two people are always calculating, or care about who has done more and who has taken more, it is doomed to have no good ending. This store must be the first during the start-up period. Only by communicating more often can we really unite.