Closing Business Partnership with Family Member

Nova

Active member
Many people don't get the burden of the partnership business. A lot of times what happens is that people assume a lot of things about the business with family member could work out. I have found out that closing business like this is something eventually happen with 90 percent of the people. This is one reason there should be no relationship based business that should be setup. Like say business between the cousins etc. The reason being unless it is years worth of the family business and the efforts being taken, there is no strong business in that case.

A lot of times building the business between family member means you have to put some efforts in the relationship and also make sure to put up a process for the same. I have realized that closing such business partnership happens in that process. I think you have to work under other people and have built up the bonding is one way to make the business work but that does not happen with most of the people and their relationship based business. So one has to eventually close such business.
 

Seyesystem

Active member
I think I agree with the op write-up because many partnership business has closed down due to conflict between the partners. I can never advise people to do business with friend or family member because business is business why family and friend are entirely a different thing.Partnership business is very complicated in doing partnership with any person make sure that the role and sharing formula is documented. Partnership business is very good to do especially when you have a good and reliable partners in the business but in order not to have future conflicts in the business you must have a documented partnership deed which will states the sharing formula of the profit, duties of every partners and other important things. In business many partners do have serious conflict but once you have the documented your partnership deed you will have rest of mind.
 

Donkiz

Active member
You are right, most partnership businesses that are between family members doesn't last long, they usually close down because of one reason or another. But there are still joint family businesses that have stood for years without closing down.

Infact I know of a family that has been in joint business for over 50 years now and the business is still standing. So this boils down to individual differences and ability to work out any problem that arises with determination and positive mindset.
 

Alexandoy

VIP Contributor
I know of some businesses that are handled by family and there are also businesses that are handled by other people instead of the family or relatives. My first employer is a bank owned by a wealthy family whose patriarch was a senator of our country. The president was his son and vice presidents were his niece and nephews. Some managers are also relatives. The business was doing well because the senator was a good manager. When the senator died the business was handled by the son that later on went bankrupt.
 
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