The Truth About Forming Partnerships

By Thomas Kish

Working in partnership with other people is one of the most powerful forms of business leverage. The most successful investors in the world all work with a team of support people and partners. If it is a good idea for them to collaborate and work together - then why would you believe that you are better off in business alone?

The key to forming successful partnerships is in the understanding of how to structure them properly from the beginning. Partnerships need to be well thought out with the details clearly spelled out in order for them to run smoothly and generate the intended profits.
Forming profitable partnerships can be accomplished through successfully negotiating the following steps:

1. Locate potential partners.2. Form a business entity (LLC, S-Corp, etc.).3. Screen partners to determine their qualifications and assets.4. Create an addendum to the LLC that details the special rules and considerations of this partnership.5. Begin to practice the presentation you will give to potential partners.6. Script out this conversation in advance.7. Craft a clear message for your potential partners to hear.8. Show partners a written plan you will follow in making these real estate investments and remember to include your exit strategy.

The final consideration to be made when you finalize a partnership agreement is how the profits will be split among the partners.

This is a negotiation you will have with each potential member. The more they bring to the partnership - the bigger share of the profits they should expect.

Ultimately the decision to either accept or reject the terms agreed to between yourself and your potential partners rests with you. Clarify all questions you have about their intended level of involvement with your project and specify your understanding of this in the agreement.

Assisting individual small business owners to achieve their large corporation schemed goals through my partnership mentoring program is very rewarding. Yet, I continually find myself stressing the importance of keeping an open mind when considering both the pros and cons of forming any investment partnership. In doing so, you may discover it is actually the pros that far out weigh the cons. This is because professionals (pros) understand the many advantages to be found through partnerships.

Find out more about the mentoring work I do at http://www.shortcuttomoney.com
About Thomas Kish.

Thomas Kish is an author, speaker, business consultant and an active real estate investor. He is a national expert in the area of business credit and has shared the stage with best selling authors Robert Allen, Mark Victor Hansen, and Robert Kiyosaki. Tom has bought and sold 8 million dollars worth of real estate using business lines of credit instead of using his own money.
And he has helped thousands of people change their lives with business lines of credit.