Leading lawyer, Rex Afrasiabi, explains the importance of business partnership agreement
Business partnerships can make or break your business. As the most famous lawyers have said, "It's perfectly legal to launch a business with a handshake and a promise, but it's smarter to start with a partnership agreement to enable your company’s growth."
A partnership agreement can spell out the rules and regulations between the partners and untangle your company's journey to success
play a vital role in any business as it deals with fundamental issues that relate to long term business success, including: decision making, management, division of profits, succession planning and the valuation of the business.
One such leading lawyer, Rex Afrasiabi, has been guiding entrepreneurs and business owners through such agreements and can attest to how they do “play a vital role in any business as it deals with fundamental issues that relate to long term business success, including: decision making, management, division of profits, succession planning and the valuation of the business.”
Although he's best known for his ceaseless vision and continuous accomplishments, Rex Afrasiabi is also the principal and the founder of MA Legal, who has uncovered incredible legal solutions for various businesses.
For years, Rex has been simplifying business partnerships and encourages every business owner to secure an agreement with their partners before launching their business.
According to Rex, having a partnership agreement comes with the liberty to enjoy mutual benefits. He says, "a solid partnership with mutual benefits can help you in creating a progressive business. Partners with similar visions and goals can achieve a lot more together than they could alone. Partnership agreements help to document the roles and responsibilities of each partner, as well as, how profits and losses will be shared. This can prevent disputes down the track and keep your business on track for success."
Rex further explains that removing a non-performing partner often becomes an uphill battle in the absence of a partnership agreement. "Even the most compatible partners can grow apart and commit acts that could jeopardize a business. In such cases, partners can remove non-performing or disruptive partners in presence of a partnership agreement after following a few procedures. Such moves can eventually safeguard your business."
Lastly, he elucidated, "one of the great things about partnerships in a business is that you can easily make through the hardest journeys with the right partner. Conflict is bound to happen, but if you start your journey on the right foot with a clear understanding, your success is also bound to happen."
A properly drafted and tailored agreement between the business partners should serve to ensure that each participant in the business venture knows where they stand in relation to each other, and what mechanisms exist to deal with future events that might impact on the business or the relationships between participants.