Giwa Ihesha
Member
Before you Start a Business with your Friend, Brother, Sister or Anyone else, Read this
“I have the idea.”
“I’ll bring the money.”
“You’ll handle the business.”
“We’ll share the profit 50/50.”
Sounds simple, right?
Until the business starts making serious money.
Then suddenly:
“I never agreed to 50/50.”
“I thought you were bringing ₦5 million, not ₦2 million.”
“That was not our agreement.”
“You said I would be the one managing the business.”
And everybody starts remembering the agreement differently.
This is why you should not enter into a partnership business based on verbal promises alone.
Before you put your money, idea, property, skills or other resources into the business, have a “PARTNERSHIP AGREEMENT.”
That document would clearly state things like:
What each partner is contributing.
How much money or other resources each person is bringing.
Who will manage the business.
How profits and losses will be shared.
How decisions will be made.
What happens if one partner wants to leave.
What happens if the business runs into problems.
How disputes between the partners will be resolved.
And please sign the Agreement.
Don't just type it on WhatsApp and say, “We have agreed.” get a lawyer to do it professionally for you.
Don't say, “She is my sister, I trust her.”
Don't say, “He is my childhood friend; he can never do that.”
Business has a way of testing relationships.
Put what you have agreed in writing and let the parties sign it.
That way, you have a clear record of the terms the partners agreed to instead of depending entirely on memory when things go wrong.
Your friendship may be based on trust. Your business should also be based on proper documentation.
Before you contribute your money to that partnership, ask:
“Where is the Partnership Agreement?”
Ignorance of the law is not an excuse oh!
Legal Talk with Confidence Aribibia
I remain your favorite Lawyer
Confidence Aribibia
“I have the idea.”
“I’ll bring the money.”
“You’ll handle the business.”
“We’ll share the profit 50/50.”
Sounds simple, right?
Until the business starts making serious money.
Then suddenly:
“I never agreed to 50/50.”
“I thought you were bringing ₦5 million, not ₦2 million.”
“That was not our agreement.”
“You said I would be the one managing the business.”
And everybody starts remembering the agreement differently.
This is why you should not enter into a partnership business based on verbal promises alone.
Before you put your money, idea, property, skills or other resources into the business, have a “PARTNERSHIP AGREEMENT.”
That document would clearly state things like:
What each partner is contributing. How much money or other resources each person is bringing. Who will manage the business. How profits and losses will be shared. How decisions will be made. What happens if one partner wants to leave. What happens if the business runs into problems. How disputes between the partners will be resolved.And please sign the Agreement.
Don't just type it on WhatsApp and say, “We have agreed.” get a lawyer to do it professionally for you.
Don't say, “She is my sister, I trust her.”
Don't say, “He is my childhood friend; he can never do that.”
Business has a way of testing relationships.
Put what you have agreed in writing and let the parties sign it.
That way, you have a clear record of the terms the partners agreed to instead of depending entirely on memory when things go wrong.
Your friendship may be based on trust. Your business should also be based on proper documentation.
Before you contribute your money to that partnership, ask:
“Where is the Partnership Agreement?”
Ignorance of the law is not an excuse oh!
Legal Talk with Confidence AribibiaI remain your favorite Lawyer
Confidence Aribibia