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The Green Sheet Online Edition

November 22, 2021 • Issue 21:11:02

Strength in partnerships

By Elie Y. Katz
National Retail Solutions

Running a small to midsize business can be difficult. In addition to managing goods, a business owner must continuously manage capital. Also, a business owner must maintain connections with consumers and distributors. These pressures can induce sleeplessness and anxiety, harming a business owner's physical and mental health, which can lead to burnout.

Business partners can help decrease this stress. Plus, partnerships often outperform single proprietorships. Initially and through the partnership's existence, business partners may share responsibilities, labor and ideas.

Funding, planning

A merchant's ideal business, for example, needs funding to properly budget for utilities, labor and other expenditures. Starting a new business can be costly, and doing so on a whim might be financially disastrous.

It is great to have a business partner who can help minimize upfront costs and improve cash flow. They may be able to help with growth, too, for it's possible your business partner will know more about running a company than you do.

After obtaining funding, considerable planning is needed to ensure a successful launch. You'll need to budget for variables, for instance, a c-store or corner market would need to budget for infrastructure such as shelves, storage, kitchen items if you plan to offer hot meals, equipment and perhaps equipment upgrades.You must also budget for client retention, advertising, and search engine marketing and optimization to compete online. Budgeting also includes saving money for unexpected expenses like new HVAC equipment.

Expert business partners can help you stay under budget and prevent problems. A store design expert may work alongside a finance expert. Partners may assess one other's budgets and provide recommendations for improvement. Business partners may also budget jointly. One partner may focus on physical expenses, the other on marketing. Collaboration improves budgetary efficiency.

Collaboration is also useful when deciding on payroll. When it comes to recruiting, paying, and retaining workers, two heads are better than one. How much to budget for personnel, when to hire seasonal or full-time workers, etc. By bouncing data and outcomes off one other, you may gain insight and creativity, which leads to better hiring choices.

Inventory management

Building inventory requires cash. To build a good inventory, you must plan and act carefully. While focused on day-to-day store management, you'll be less likely to make an error involving inventory if you have a partner who can assume responsibility for ensuring stock levels are kept in check. Ordering too much of an item wastes shelf and storage space. When preoccupied with other issues, you may order the correct products but not enough of them. You could sell out of stock, spurring dissatisfied consumers to move to a competitor. If you're constantly out of stock, you'll lose customers and income.

Community building

A business partnership may assist in building public, manufacturer and distributor connections. One partner can build relationships, meeting businesses one-on-one and taking part in community events like street fairs. The other can take care of other responsibilities like budgeting. Sharing your resources may help you grow your network and receive referrals.

This is all worthless, though, unless you work with the appropriate individual or company. You want someone you can trust and who is willing to work hard. Research potential partners and seek advice. Then follow up. Examine the person's social media. Before making a decision, consult a trustworthy person who wants to help you succeed. You might also consult a friend or family member of the potential partner. But if you choose this path, tread carefully. Arguments, egos and prior disappointing business results may exacerbate family and relationship problems, clouding their opinions.

Choosing a partner with the highest level of ethics, business experience, tolerance and brand reputation will inspire others to join your expanding company. Do your research and select wisely to find a successful business partner. end of article

Elie Y. Katz is founder, president and CEO of National Retail Solutions. NRS is a leading provider of POS systems, NRS Pay credit card processing, NRS Petro for gas stations, NRS Funding cash advance, and many additional products and services for small and midsize independent retailers across the United States. Contact him by phone at 201-715-5179 or email at ekatz@nrsplus.com.

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