One of the lessons that businessmen in the Philippines learn from the get-go is that the right business partners make all the difference in taking their enterprises to the next level. An advantage of building a business partnership in the Philippines is the value that Filipinos place in relationships. Mutual respect, honoring agreements, and valuing cooperation are part of the cultural values that Filipinos have lived by for generations.
With that said, not every successful business partnership evolves from deep friendships or familial ties. Sometimes all it takes is the guidance of a wise collaborator, whether you’re a small business looking for angel investors or a larger one looking to form a limited-liability partnership.
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How To Make the Most Out of a Local Business Partnership
Finding the right partner who will commit to the company in good faith takes patience and vetting. As with many relationships in the Philippines, the best business partnerships always start with staying informed and asking the right questions.
1. Be Clear About Expectations
Regardless of what potential partners bring to the proverbial table, it is important to let your partner know where you stand on key issues and situations that can affect your partnership. This ensures both accountability as well as good communication on issues that are related to both money and responsibilities within the company.
2. Know Your Roles
It also helps to divide responsibilities and tasks based on how much each partner is willing to commit. One partner may be good at marketing and sales, for example, while the other is more proficient with accounting or production. A diverse range of duties for each partner can lighten the load for everyone in the company.
3. Consult With Professionals
Asking for the advice of lawyers, accountants, and other certified experts is a sign of each partner’s willingness to trust in one another while being realistic about the time and effort they are willing to give. Among the matters that can be settled by a certified professional are profit sharing, debt settling, and even contingency plans for ending the partnership.
4. Get Everything in Writing
Printing and signing contracts is not just another expression of trust in the partnership; it’s also another means of protecting the partners themselves under Philippine law. While some Filipinos are satisfied with verbal agreements, having a written contract or checklist ensures full awareness and understanding of each partner’s expectations.
5. Hold Each Other Accountable
All partnerships have a high likelihood of working out when partners are willing to be held accountable to each other. In the case of business partnerships in the Philippines, this means openly accounting for every peso spent and every effort exerted to make the business run as smoothly as possible.
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Turn Your Business Partnership into a Fruitful One
As a rule of thumb, the laws and guidelines that govern business partnership in the Philippines require an understanding of liabilities as well as a clear delineation of responsibilities within the partnership. Each partner has the capacity to bring something different to the partnership, whether it’s skills or financial assistance.
The risks that businessmen take to create a lasting partnership are high, which makes liabilities and disagreements a major concern. But when a small number of stakeholders are involved in a partnership, the decision-making processes can be easier, and conflicts can be settled in a logical manner.
Regardless of relationship, every business partner should always enter their agreements with a strong sense of commitment, professionalism, and even a willingness to be held accountable for their work. With this knowledge, business partners will always have a good chance of establishing a fruitful business in the Philippines.
Read more about Work and Business in the Philippines.
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