Why there are too many tiny businesses when there could much bigger ones

My younger brother decided to come out with his music album. He planned to collaborate with one of his friends as some youths are doing today. One day I heard the two of them quarreling in the room. They were debating over who would have the greatest percentage when the music was out. My brother said the idea was his own so he would give his friend 10% while he takes 90%. His friend wouldn’t agree so they called it quits. Guess what? The project was abandoned. It’s a shame that most people would rather watch a business die than merge. I have seen similar situations with owners of small business. They don’t want to partner with anybody. I think it is the ego thing; the pride that goes with ‘this is MY business’.

The biblical saying that 1 would chase a 1000 and 2 would chase 10,000 seem absurd but very true. This principle implies that, when we join our resources with others, we multiply our resources ten times more and beyond. There are many people who would not be business owners today had they not joined their resources with somebody. Great brands like Antrak air in Ghana, Yahoo, and some Banks are owned by two or more people. While some don’t have the skills to run the business to run the business, they have the capital for it and they complement each other’s weaknesses.

Modern day businesses are merging in different forms to deal with diverse and serious problems. Some banks have merged to beat the competition. Standard Trust Bank Merged to become UBA while Social Security Bank merged to become SG-SSB. Even Bigger firms are forming associations and groups. The challenges these days are more than the competition; there are disasters, political instabilities, global economic problems and the like. Firms have joined others to undertake projects or research and have boosted their revenue. The examples are everywhere, just open your eyes.

Many Forms of Mergers 

I think we all have this selfishness and ego problem. However, we can still do something about it. There are different forms of mergers that would suit all of us. For instance, going public, joint venture, franchises, partnerships, licensing among others offer different levels of teaming up. If it is not satisfactory then have another business for your ego but do one more for partnerships because the benefits are great. Think about what you can own through mergers. The possibilities are that you can do big projects that your company alone doesn’t have the resources for; you can own a bank, your music album can be launched, you can even get employed as well.

Agreements

It was Mario Puzo who said ‘for every great wealth there is a crime’, and I have seen various crimes committed under the umbrella of partnerships. The fear for partnerships is valid. Too many people have been cheated. You start a business with a friend and he puts his name on it and kicks you out. Though these are happening, they should not deter us from going ahead with joint ventures.

·         Guard yourself from these troubles via having an agreement.

It should be signed by the parties involved. Every part of the agreement should be clear to both parties. The percentage of ownership, rules and responsibilities of each party among others should be clearly spelt out. Get a lawyer to make it formal.

·         Look at what he has to offer.

Would the he is bringing on-board help you to achieve your objective? What he is bringing should complement your needs. If you have the capital perhaps he can also help with providing the building among others for the business.

·         Examine his objective for the partnership.

Is it same as yours? If your goals are different it might create problems in the future.

·         Examine his character.

You can know this by inquiring about his past dealings. If he is a conman then the likelihood of him cheating you is great.  Stay away.

·         Try to predict his future behavior.

Is he a consistent person? Would he quit at the slightest trouble? Is there are chance that he would turn against you in the future?

·         Look at the personality of the person you are dealing with.

If his character is too strong for you I will suggest you find another person. Believe me, you don’t want to partner with a person you can’t handle. Because, he could dominate you and give you serious heart problems.

Your comments are welcomed, what are your views and experiences?