5 Key Points That Turn Co-Founders Into Superstars

5 Key Point That Turn Co Founder into Superstar

Co-Founders: A cool word by today’s standard but a dark web from inside. The two Steve’s, the first a lonely young man with philosophical queries, the other one through a computer programming genius. We won’t say anything more because by now we are sure you must have guessed who we are talking about. The two Steve’s were poles apart (One Steve had even duped the other of a substantial amount of money for the work done on making a pong game), but what made them create the world’s biggest company in terms of market valuation?. Well, this is a question which is hard to answer. And in this blog, we delve into the 5 key points that turn co-founders into superstars. It takes a lot of the business partnership to flourish and blossom amidst the grueling demand of a start-up. There are uncountable stories of start-up partnerships ending in lawsuits and at times of violence.

So here’s a list of few important points that you must check out before making that one handshake that may open the doors to greatness or the freefall to an obscure isolation for you.

The Big Picture

As partners in a budding start-up, the co-founders must always aware of the big picture at the back of their mind. They must be at all cost be bound by the Vision and Mission of their Venture. Co-founders work best when they bring expertise from different domains to the table. But these contrasting expertise unless channeled towards a common goal can lead to ego clashes. A difference of opinion is a must for creative solutions to problems. But co-partners must refrain from being rigid and vehemently be sticking with only their point of view. Success depends on teamwork. Business partners must remember that their partnership must be synonymous with the engine and wheel of a vehicle. While the engine churns out the power that is necessary to drive the vehicle, the steering wheel is the guide towards the destination. A successful business partnership has similarities like a successful marriage that survives long if one partner acknowledges the contribution of the other to the startup equivalent to his.

Read Also: Things to Know Before Forming a Business Partnership With a Friend

Hire Expertise: Never Settles for The Ordinary

While working on their flagship offering of the day, Apple co-founders were stuck on the power supply. In came Rod Holt, apple employee no #5, who charged 200$ a day for working on the power supply. Years later, Rod Holt while remembering the good old days recounted that when asked for his fees, Rod Holt had replied that he was not sure that the co-founders could afford him. Mush to his dismay the co-founders replied they could. And this is Rod Holt came onboard Apple 2 and became part of history. This is just one of the single instances where co-founders hire expertise to find solutions to a nagging problem that threatens the very values and integrity that the start-up stands for. Hence, as co-founders, the most important quality is to be flexible when the situation demands you to be and play down your egos. Always refrain from supporting limitations that affect the core values of your business or product. Founders should be bold and never settle for the ordinary.

Read Also: 7 Partnership Factors That Can Make or Break Your Business

Flexibility: Should Be Quick to Embrace Change

Today’s hot is Tomorrow’s cold. This is apt for the ever-changing landscape of technology. Remember Yahoo!!… There greatest mistake was turning down Google in 1998 for $1 million and the rest, as they say, is HISTORY. Co-Founders must be aware of the scalability of their idea and back it up with complete faith. One or both of the co-founders must remember that an idea is just the beginning of the journey. In the larger scale of things, both must agree on important changes that can not only redefine the scale of the business venture but open doors of opportunity that they never realized existed in the first place.

Read Also: 7 Signs of A Bad Business Partnership or Partner

Accountability

Be very careful and avoid someone who is all talks and no work. Drumbeaters are the worst you would want to associate with. Remember, the biological clock works differently for individuals. While some may be up and ready to go with the dawn, others may take a little longer and hit the road running at 9 AM. While some can get a lot done in 5-6 hours others might take 9-10 hrs. As long as your potential co-founders skill suits the partnerships requirement and he is a workaholic, these nits and bits can be overlooked. Each co-founder’s role and responsibility must be clearly defined from the outset to check friction and ensure individual accountability. As long as co-founders appreciate the skill set they bring to the table and respect each other work ethic, accountability will never be an issue.

Read Also: 7 Most Important Clauses to Include in a Partnership Agreement

Money

Grab that cash with both hands and make a stash

New car, caviar, four-star daydream,

Think I’ll buy me a football team

These starting lines from the famous song ‘Money’ from the legendary band Pink Floyd perfectly echoes the common human sentiment when it comes to Money. Remember, Money changes people. There have been co-founders who have sold all their shares and taken the first flight back home at the first glimpse of a million dollar buyout. Good for them, but it leaves the other partner stranded and with a lot of work on his table. On the other hand, sometimes a co-partner, who may have mouths to feed and loans to be paid, may be in dire need of money. As a co-partner decide beforehand if you can handle such a partnership rather than finding yourself entangled in a whirlpool of someone else’s greed or need. It is imperative to set crystal clear financial goals from the very outset.

Read Also: 7 Kinds of Business Partners You should Avoid

Important Tips

  • Attend hackathons or events like ‘founder dating’ to meet potential creative and skillful co-founders. Events are great opportunity to exchange ideas and meet equally enthusiastic people.

  • 50-50 partnership is never a good idea.

  • Refrain from being a Dictator. Never act like a boss and feel you are only accountable to yourself. A great product does not always mean a great company. So work on management skills and be a true leader.

  • A good idea attracts investors easily is a myth. It took centuries to prove that the earth was round. A good idea will not necessarily attract immediate investors.

The above were five important points which we think co-founders must consider at the very beginning before embarking on the roller coaster ride of the start-up universe. In addition to these, the co-founders must agree to a mutual agreement that clearly defines the objectives and goal of the business and put it into writing. The legal agreement must also cover the exit strategy if things don’t work out in the first place. However, these lines should not deter budding entrepreneurs from taking the leap of faith. Remember one thing, a big failure is a doorway to great success. During one of those days that bring disappointment and anguish, co-founders must remember that knowledge can bestow fast legs to your startup but it is imagination that will give it wings. So imagine, plan, implement and chose a great co-founder that suits you the best and fills in the gaps that you can’t. In the words of one of the greatest entrepreneurs of our times “Its all about connecting the dots”.

How to Generate E-way Bill On The E-way Bill Portal

How to Generate E way Bill On The E way Bill Portal

What is E-Way Bill?

EWB (Electronic Way Bill) is a unique bill/document which is mandatory to carry for either inter-state or intra-state movement of goods if the goods worth more than Rs. 50,000. e waybill is quite easy to generate or canceled via Android App, SMS and through API (Site-to-Site Integration). The e way bill system is to generate a unique EBN (e-way bill number) is assigned to the distributor, recipient and the transporter.

Who Should Generate an eWay Bill?

Both the registered and unregistered transporter are able to generate the EWBs, however, it is required to have User ID / User Name and Password to log in to the portal.

The new eway Bill Portal is a platform where you can easily generate e way bills, annul the generated e-way bills, change the vehicle number on the previously issued EWBs, etc.

Validity Period of E-WayBill

The e-way bill validity depends upon the distance traveled by the goods. The EWB validity is calculated from the date & time of producing an e waybill. Validity periods listed below:

Validity of an eWay Bill

If your eway bill expires, you can be extended it within 4 hours after its expiry.

Which Documents are Required to Generate e WayBill?

Before proceeding to generate eWay Bill, here are the stipulated requirements. Just keep handy with the given information ahead of breaking into the system for GST e way bill issuing.

  • You need to e way bill registration on the EWB portal (One time process)
  • The consignment related Invoice, Challan or Bill to keep your side
  • If the way of transport is a road, keep the Vehicle number or Transporter ID
  • In case of the way of transport is air, ship, or rail, keep handy with Transporter ID, document number and the date provided in the document.

How to Create eWay Bill?

Here is a simple step-by-step guide for generating eWay Bill. After e waybill login you can generate EWB, just Follow these easy steps to produced eway bill online.

There are two methods to generate e-way bills

  1. On the Web-Based Portal
  2. Or by SMS.

Here on this post, we will be guiding you on “How to Generate eWay Bills on E-Way Bill Portal online

Generate e Way Bill Via Web Portal

Step 1:  Open www.ewaybillgst.gov.in and login to the website to get into e-way bill system.

Goods and Services Tax E-Way Bills System

To the login screen, enter the registered Username and Password then fills the Captcha code. After feeding the e way bill login credentials, click on Login tab

Step 2: At the left side of your screen, click on Generate new tab placed under E-waybill option.

E-Way bill generate New

Step 3: E-way bill entry form appears where you have to fill details of the Transaction Type, document type, no., date, etc. information. Here is the detailing:

E-Way Bill Entry Form

Transaction Type:

Choose Outward in case you are a leading supplier of consignment and

Choose Inward in case you are a leading recipient of consignment

Sub-type:

In case of Outward type transaction, the following kind of sub-type appears:

Outward type transaction kind of sub-type

In case of Inward type transaction, the following kind of sub-type appears:

e way bill generation step by step guide

Note: Here CKD/SKD stands for Complete knocked down condition / Semi knocked down condition respectively.

Document type:

Choose the relevant option from Invoice/ credit-note/ challan/ Bill of entry/ Bill, or choose “other” if your options are not on the list.

Document Number:

Feed the invoice/document no. here

Document Date:

Choose the date of challan or Invoice or Document. It is important to note down that the system doesn’t take the future date.

Read Also: HSN Code & GST Tax Rate List for General Store and Kirana Items

From/ To:

From/ To details depend upon a supplier and a recipient, So you have to enter the From/To details basis on whether you are a supplier or a receiver

e way bill generation step by step guide

Note: GSTIN number is for a registered person and if you are an unregistered supplier/recipient, you have to mention URP under the section naming GST Identification Number(GSTIN).

Item Details:

Here in item details, you have to mention the information regarding the consignment (Harmonized System Nomenclature code-wise) under this section, let me tell you about it.

  • The 1st on is “Product name” here simply enter the name of your product.
  • The 2nd is “Description”, write a little description of your product here.
  • The 3rd one is “Harmonized System Nomenclature(HSN) Code” of your product.
  • The 4th on is “Quantity”, enter the quantity of your product here.
  • If it’s in “Unit”, enter here.
  • 6th is the “Value/Taxable value” of your product.
  • 7th the Tax Rate(C+S+I+Cess): Mention CGST, SGST, and IGST tax rates in %. You also have to mention Cess tax rate (in %), if there is any charged.

e way bill generation

Note – On the EWB rollout, the details furnished here are a basis of filing entries in the corresponding GST returns on an auto-populated way.

  • Transporter details:

This field mandates to furnish information regarding the mode of transportation (Air/Road/Rail/Ship)and the estimated distance include (in KM). In addition, either of the information can be described:

transporter Doc. Number, Transporter name, transporter ID & Date.

OR

Vehicle number carrying transported. consignment.

Format: AB121234 or AB12AB1234 or AB12A1234 or ABC1234

E way Bill

Note: On the login dashboard, furnish the My master’s section in advance. This section is for the products, customers/clients, transporters and suppliers which take part in e-way bill generation frequently. After that, proceed for further filing.

Step 4: Click on Submit tab. The system automatically validates all the information provided and displays error as well, if there is any.

Read Also: Gen GST Software Review – Know Why it’s Best GST Software in India

If there is no error, the request is further advanced and the e-way bill form EWB-01 along with a relevant unique 12 digit number is being issued.

This is how the final EWB looks like:

EWB looks like

Choose conveyance with e Way Bill under GST to make the goods to be transported in a relevant selected mode and then print out the bill and keep it with the consignment.

How to Change Vehicle Number in an Existing e-Way Bill through Web Portal?

If you forgot to enter the vehicle number while creating the original e-way bill or had to change the vehicle for some reason, you can update the vehicle number in the existing bill by using the option on the portal. Here’s how.

Log in to your e-way bill portal account. Go to vehicle update option in the left sidebar. Enter the e-way bill number for which you want to update the vehicle number. The other information will be auto-populated. Now, enter the new vehicle number. If you had already entered a vehicle number in the original bill, you will also have to provide a reason as to why you want to change the vehicle. You can enter more details in the remarks field in the form. Click on ‘submit’ button when done. Upon verification, your vehicle number will be updated and you will get the confirmation message.

How to Cancel an e-Way bill through Web Portal?

Only a supplier can cancel an e-way bill, and that too only within 24 hours of creating it. Here’s how to cancel an existing e-way bill via the web portal.

Login to your e-way bill portal account. On the dashboard, click on the ‘Cancel’ option under the ‘E-Way bill’ tab in the left sidebar. On the next page, enter the 12-digit bill number which you want to cancel and click on Go. On the next page, you will have to provide a reason why you want to cancel that bill. Then, you can proceed to cancel it.

Print GST E-Way Bill:

Step 1: On the Dashboard, click on Print EWB sub-option under e-Waybill option

Step 2: Furnish the 12-digit e-way bill number provided at the time of generation and then click on Go option

Step 3: Now, choose anyone from detailed print or print button and click it

This is how you can create waybill easily by following the step-by-step procedure on the e way Bill Portal.

Generate E-Way Bill via SMS

The government has provided an alternate facility for those who do not have access to the web or desktop computer. Now, you can easily generate/reject/modify an e-way bill by simply sending an SMS from your registered mobile number.

The e-way bill SMS facility lets you quickly create an e-way bill, especially when you are in an emergency and have no time to access the web. To be able to generate an e-way bill via SMS, your mobile number must be registered for the facility. A maximum of two mobile numbers can be registered against one GSTIN for the SMS facility and both numbers must already be registered on the GST portal.

SMS Format for Generating an E-way bill

In order to get an e-way bill via SMS, the user needs to send an SMS in a specific format, as explained below, to the mobile number of the respective state in which they are registered.

There are different SMS formats for different e-way bill activities. Take a look below:

E-Way bill generate a request by suppliers (EWBG)

If you are a supplier wanting to create an e-way bill, you need to send an SMS in the following format:

EWBG TranType RecGSTIN DelPinCode InvNo InvDate TotalValue HSNCode ApprDist Vehicle

The terms here are:

TranType: Type of Transaction
RecGSTIN: Receiver GSTIN
DelPinCode: Delivery location Pincode
InvNo: Invoice number
InvDate: Invoice date
TotalValue: Total value of the supply
HSNCode: HSN code of the product being supplied
ApprDist: Approximate distance between the sender location and the receiver location
Vehicle: Vehicle number

For example, Ram is supplying goods worth Rs. 1,00,000 with HSN code – 7015, for which invoice no. is 1001 and the date is 10/7/2018, from Mumbai to Shyam in Pune. The vehicle number for this transport is MH20 W7289 and the total distance to cover is 150km. The SMS to be sent by Ram will have the following format:

“EWBG OSUP 24AACPX0991K2ZK 411006 1001 10/7/2018 100000.00 7015 150 MH20W7289”

This SMS should be sent to the registered mobile number for e-way bill facility in the Maharashtra state. You can find this number on the GSTN website.

If the format and details provided by you are correct, you will receive a reply message, as below:

“E-Way bill generated successfully. e-way bill no: _____ and date is 10/7/2018”

E-Way bill generate a request by Transporters (EWBT)

As a transporter, if you want to get an e-way bill via SMS, you need to send an SMS in the following format:

EWBT TranType SuppGSTIN RecGSTIN DelPinCode InvNo InvDate TotalValue HSNCode ApprDist Vehicle

The terms here are:

TranType: Type of Transaction
SuppGSTIN: Supplier’s GSTIN
RecGSTIN: Receiver GSTIN
DelPinCode: Delivery location Pincode
InvNo: Invoice number
InvDate: Invoice date
TotalValue: Total value of the supply
HSNCode: HSN code of the product being supplied
ApprDist: Approximate distance between the sender location and the receiver location
Vehicle: Vehicle number

Provide the correct transport details in the format mentioned above and send it to the registered number of your state. If all the information is correct, you will receive the e-way bill details shortly by SMS.

E-Way Bill vehicle update request (EWBV)

If you want to update vehicle details in an existing e-way bill, send an SMS in the following format:

EWBV EWB_NO Vehicle ReasCode

Here,
EWB_No: E-way bill number of the existing bill
Vehicle: Vehicle number of the new/updated/changes vehicle
ReasCode: Code for Reason to change

Provide the details in the correct format, as mentioned above, and send it to the registered e-way bill mobile number of your state. If the details sent by you are correct, you will receive a confirmation message shortly.

E-Way bill cancel request (EWBC)

Want to cancel an existing e-way bill via SMS? Here’s the format for this request.

EWBC EWB_NO

Here, EWB_NO is the E-way bill number of the bill that you want to cancel.

Provide the correct e-way bill number and send it to the registered number. Upon verification, your bill will be cancelled and you will receive a confirmation number.

Generating a Consolidated E-Way bill on The Portal

A consolidated e-way bill is used when transporting multiple supplies (consignments) through a single vehicle. The consolidated e-way bill can be generated on the web portal. Here’s how:

Step 1: Visit www.ewaybillgst.gov.in and e waybill log in using your details.

Step 2: At the left side of the dashboard, click on ‘Generate New’ option under the ‘Consolidated EWB’ tab.

Step 3: A form page will open where the following details are required to be filled:

  • Mode of transport – Road/Rail/Air/Ship
  • From State – State from which the transport is initiated
  • Vehicle Starts From – the place/city name
  • Vehicle No.
  • E-way bill number of the already generated e-way bill, in which you want to consolidate more details.

Once you enter the e-way bill number, the remaining details will be auto-populated. Click on Submit button to generate a consolidated bill with the new information. You can download or print the new e-way bill on the next page.

HSN Code & GST Tax Rate List for General Store and Kirana Items

gst rate and hsn code of general items

What is HSN Code Under GST?

The HSN Code full form is Harmonized System of Nomenclature that is multipurpose international product coding system developed by the World Customs Organization better known as WCO.

How does HSN code work?

HSN code in GST contains the 21 section, with 99 chapters, about 1,244 heading or 5,224 subheadings. Sections and chapters are designed in order of an item’s level of manufacture or regarding its technological complexity. It is a 6-digit code that is unique in nature and is classifies more than 50000 products worldwide. Every two digits of the code represent the chapter, heading, and subheading.

HSN Code GST Format

[xx]                        [xx]                       [xx xx]
Chapter              Heading             Subheading

Here, you can find the GST rate and HSN code list for the General store and Kirana items which is a daily everyday item. And everyone should know about GST rate and HSN code of general items. Here we will get you to know all GST HSN code with GST Rates List for general store and Kirana items list:-

GST Rate & HSN Code List For General Store Items:

S No.

वस्तु का नाम Items name HSN Code

GST Rate

1. टूथ पेस्ट Tooth Paste

3306

18%

2. टूथ ब्रश Tooth Brush

9603

18%

3. शेविंग क्रीम shaving Cream

3307

28%

4. आफ्टर शेव लोशन Aftershave Lotion

3307

28%

5. डिओडोरेंट Deodorants

3307

28%

6. फेस पाउडर Face Powder

3304

28%

7. नेल पोलिश Nail Polish

3304

28%

8. सिन्दूर Sindur

3304

NIL

9. बिंदी Bindi

3304

NIL

10. कुमकुम Kumkum

3304

NIL

11. आलता Alta

3304

NIL

12. लिप मेकपलिपस्टिक इत्यादि Lip Makeup –Lipstick

3304

28%

13. आई मेकप Eye Make up

3304

28%

14. टूथ पाउडर Tooth Powder

3306

12%

15. शैम्पू shampoo

3305

28%

16. हेयर आयल Hair Oil

3305

18%

17. हेयर डाई Hair dye

3305

28%

18. फेस क्रीम Face cream

3304

28%

19. टेलकम पाउडर Talcum Powder

3304

28%

Read Also: GST E-Billing and Return Filing

GST Rate & HSN Code List For Kirana Items:

S No.

वस्तु का नाम Items name HSN Code

GST Rate

1. शक्कर Sugar

1701

5%

2. खांडसारी Khandsari

1701

5%

3. कॉफ़ी Coffee

0901

5%

4. नमक Salt

2501

NIL

5. मिर्ची chilly

0904

5%

6. जीरा Cumin

0909

5%

7. सौंफ Anise

0909

5%

8. चाय Tea

0902

5%

9. मेथी Methi

0910

5%

10. अमचुर Amchur

0910

5%

11. गोंद Natural Gum

1301

5%

12. तेज पत्ता Bay Leaves

0910

5%

13. अन्य मसाले Other Spices

0910

5%

14. बटर Butter

0405

12%

15. देसी घी Ghee

0405

12%

16. चीज Cheese

0406

12%

17. कंडेंस्ड मिल्क Condensed Milk

0402

18%

18. कत्था Indian Katha

1404

18%

19. साबूदाना Tapioca

1903

5%

20. काली मिर्च Black Pepper

0904

5%

21. दाल चीनी Cinnamon

0906

5%

22. लौंग Clove

0907

5%

23. जायफल Nutmeg

0908

5%

24. जावित्री Mace

0908

5%

25. इलायची Cardamoms

0908

5%

26. कलोंजी Black cumin

0909

5%

27. सौंठ Dry Ginger

0910

5%

28. केसर Saffron

0910

5%

29. हल्दी Turmeric

0910

5%

30. अजवायन Thyme

0910

5%

31. रस्क और टोस्ट Rusks and Toasted Bread

1905

5%

32. मंगोड़ी एवं सोया बड़ी Mangodi/ soya Badi

2106

12%

33. डिटर्जेंट केक Detergent Cake

3401

18%

34. डिटर्जेंट पाउडर Detergent Powder

3402

28%

35. जैतून का तेल Olive oil

1509

5%

36. पॉम आयल Palm Oil

1511

5%

37. सूरजमुखी का तेल Sunflower Oil

1512

5%

38. कपासिया का तेल cottonseed oil

1512

5%

39. कोपरे का तेल Coconut Oil

1513

5%

40. सरसों का तेल Mustard Oil

1514

5%

41. अन्य खाध्य तेल Other Edible oil

1515

5%

42. डिश वाश बार Dish wash Bar

3402

28%

43. टॉयलेट सोप Toilet Soap

3401

18%

44. सेनेटरी नैपकिन Sanitary Napkin

9619

12%

45. पान मसाला Pan Masala

2106

46. सोयाबीन का तेल Scessesan Oil

1507

5%

47. मूंगफली का तेल Grond Nut Oil

1508

5%

Read Also: How To Generate E-way Bill On The E-way Bill Portal

GST Rate & HSN Code List For Dry Fruits

S.No.

वस्तु का नाम Items name HSN

दर

1. काजू Cashew Nut

0801

5%

2. बादाम Almonds

0802

12%

3. अखरोट walnuts

0802

12%

4. पिस्ता Pistachios

0802

12%

5. खजूर Dates

0804

12%

6. अंजीर figs

0804

12%

7. किशमिश Kishmish

Raisins

0806

5%

8. अन्य ड्राई फ्रूट्स Other Dry Fruits

0813

12%

List of HSN Code & GST Rate For Confectionary

S.No.

वस्तु का नाम Items name HSN

दर

1. मिठाइयाँ Sweetmeats

2106

5%

2. चीनी की कन्फेक्शनरी Sugar Confectionary

1704

18%

3. च्युइंग गम Chewing Gum

1704

28%

4. बबल गम Bubble Gum

1704

28%

5. सफ़ेद चोकलेट White Chocolate

1704

28%

6. पिजा ब्रेड Pijja Bread

1905

5%

7. सिवईयां Siwaiyan

1902

5%

8. रस्क और टोस्ट Rusk and Toast

1905

5%

9. पास्ता Pasta

1902

18%

10. नूडल्स Noodles

1902

18%

11. कॉर्न फलैक्स Corn Flacks

1904

18%

12. वेफर्स (बिना कोक या चोकलेट के ) Wafers (without coco and Chocolate

1905

18%

13. पेस्ट्री Pastry

1905

18%

14. केक Cake

1905

18%

15. वेफर्स ( कोको या चोकलेट के ) Wafers (with coco and Chocolate

1905

28%

16. जेम, फ्रूट जैली gem, Fruit Jelly

2007

12%

17. फ्रूट जूस Fruit Juice

2009

12%

18. वेजीटेबल जूस Vegetable Juice

2009

12%

19. यीस्ट / बेकिंग पाउडर Yeast /baking powder

2102

12%

20. नमकीन, भुजिय ा, मिक्सचर और इसके समान तुरंत खाने की वस्तुए Namkeen, Bhujiya, Mixture and ready to eat like item

2106

12%

21. इंस्टेंट टी Instant tea

2101

18%

22. ब्लैक टी Black Tea

2101

18%

23. सॉसेज/ Souses

2103

12%

24. आईस क्रीम Ice cream

2105

18%

25. सॉफ्ट ड्रिंक कंसन्ट्रेट Soft drink concentrate

2106

18%

26. शरबत Shabbat

2106

18%

27. सुपारी Supari

2106

18%

28. रेडी टू ईट पेकेजेड फ़ूड Ready to eat Packaged food

2106

18%

29. डाइबेटिक फूड्स Diabetic Food

2106

18%

30. इंस्टेंट कॉफ़ी Instant coffee

2101

28%

31. पान का चूरन Pan Churan

2106

28%

32. कस्टर्ड पाउडर Clustered powder

2106

28%

33. बिस्किट Biscuit

1905

18%

34. डबल रोटी BRAED

1905

NIL

35. पापड़ Papad

1905

NIL

GST Rates Chart (Infographic):

Here is the infographic of the tax rates for General Store Items. India has 5 GST tax slabs, range start from 0% (Nil) to 28%.

GST Rate list

Further Reading:

7 Most Important Clauses to Include in a Partnership Agreement

Partnership Agreement

Are you planning to start a partnership business? Have you done your research? Did you find the right partner? And what should be included in a partnership agreement and other legal aspects of the partnership?

If you have positive answers to all these questions, you are probably ready to go ahead in the partnership. But if you don’t, then, your research is far from over. So, just go on reading. In this article, we will discuss the most important clauses every partnership agreement needs. As you can imagine, there are many things business partners must decide upon before getting into running a business together. Your partnership agreement (or operating agreement) will mention such things, to protect you and your business from any adverse factors that may come around during the course of the partnership.

Drawing a simple partnership agreement may seem like a tedious job now, but it is one of the most important things you can do before going into a partnership. You should do it even if there is no such law because it is for your own good (just like wearing a helmet when riding a bike).

Clauses to Include in Your Partnership Agreement

1. Sharing and Contribution:

This section mentions the details of the money and other resources each partner is contributing to the business. It usually decides the sharing of each partner in the company. This clause should also mention the steps to be taken if the business demands more monetary investment in near future. Make sure to plan for the worst-case scenario. The clause should also mention if one or more partners are only investment partners in the firm.

2. Decision-Making:

The decision-making process and how the important decisions will be made should go into this clause of the partnership agreement. What if you could not reach a conclusion even after a serious discussion? Who will make the ultimate decision? How will you conduct the meetings for making a decision? Who will head such meetings? All these questions and some others must be answered in this section.

3. Violation of Agreement:

The partnership agreement should be treated like the official rule-book of the business (it actually is), and therefore, any sort violation of any agreement rule should be handled accordingly. Depending on the type of violation, the guilty partners and/or other business entities can be made to do certain things. These things and actions, along with conditions, should be clearly mentioned while drawing the agreement in the beginning.

4. Distribution of Profits/Losses:

How often and how much money can business partners take out of the company funds. Would there be any fixed salary? If the company is planning to expand on a national or global level, would it affect the salaries of the individual partners? If yes, how? Will partners ever get back the money they initially invested in the business? And so on. Answer all these questions with the suitable answers to make sure that you and your partners are in sync.

5. Death of a Partner:

Bad things are usually unannounced, and it is best to plan for them in advance. One of such situations is the accidental death or disability of one of the business partners. This section will mention the methods to tackle such things, including the details of insurance, trusts, shares, and wills. Each partner, in consultation with other partners, should make the decision on how he/she wants their affairs to be handled and who would take their position in the company, etc.

6. Welcoming New Partners:

This is another important clause to include in the operating agreement? What if your business expands and you wish to include more partners in it? This clause will include the conditions of sharing, responsibility and other things for new partners in the business. There should definitely be a provision for protecting the integrity and value of the old partners when writing this section.

7. Dissolution of Partnership:

This is the ultimate and one of the most important clauses that should definitely go into your partnership agreement. What will happen if one of the partners decides to leave or is forced to leave or has to leave for some reasons? The beginning of the partnership, when all partners are in agreement, is the best time to constitute an exit strategy so that there are no arguments when the actual time comes, and the matter can be resolved peacefully. This should include the process of selling/distributing the shares of the said partner, replacing their position if required and/or dissolving the partnership.

Well Worth the Time and Effort

Indeed, building up a big and small business partnership agreement takes some time and some cash, however, it’s certainly justified regardless of the significant serenity to know you and your partners are in agreement and have similar desires and understanding about how your business will work. After a few discourses and just a little-printed material, you’ll have an agreement that can spare you from potential fights in court and huge issue later on.

Business Agreement Format/Template

A business agreement between two parties is a very common and required document. This agreement letter describes all the terms & conditions for both partners to follow so that they can avoid issues and disagreement in the future.

Smple-Business-Agreement-Format

Basic Details Needed in a Partnership Agreement

  • Partnership Name
  • Purpose of the Partnership
  • Name and Addresses of all Partners
  • Capital Contributions
  • Profit/Loss Distribution
  • Partnership Addition and Withdrawal
  • Ownership Interest
  • Partnership Dissolution

Do you have all these clauses in your business agreement? Do you have anything else to add? Feel free to share your thoughts in the comment box below.

7 Partnership Factors That Can Make or Break Your Business

Business Partnership Factors

A business partnership is a very common choice when you are looking to start a new business or expand the existing one. On the top, it may seem like a safe and brilliant idea to find a partner when you are in need of investment or resources or just the right company, but it actually has its downsides as well.

There are many factors that can help you achieve great success in the partnership, but if not tackled carefully, the same things might end up breaking your business. Read on to find out more about such things.

Trust

An honest and open relationship between partners is the foundation of any successful business partnership but It is very crucial for business partners to trust each other. A business is much like a relationship; if you do not trust your partner, you’ll never be at ease about them. Instead of choosing a new, unreliable partner, make partner with someone whom you know and trust well. The lack of trust among partners is harmful to the business as well as for the relationship. If you cannot trust them as a person, you’ll never be able to trust and respect their decisions, which will lead to conflicts in the business.

Planning

Businesses often neglect the importance of proper planning to find the right business partner. The planning should involve the things you can do to present yourself and your business as a strong venture in the eyes of the prospective partners. Let them see the positive points of your business and tell them how they can benefit by partnering with you. But make sure to provide only correct data and truths, otherwise, it may cause a big issue later on.

Skills

A business partner must essentially be someone who complements the skills you lack. Having a partner who has the exact same skills as you is generally of no use unless there is a great demand for that particular skill. You will be exhausted and even irritated if all of you are working on the same skill set. If you are looking for a partner for his skills and talent, make sure to choose the one who has what you don’t.

Recommended Reading: Things to Know Before Forming a Business Partnership With a Friend

Goals

It is also very crucial for business partners to have the same goal towards the company. Then only they can work for the same thing and think alike. It is natural for each person to have some personal goals and ambitions in mind, but they should not contradict with the business goals. And your partner and you should be able to prioritize the business if and when it comes to that. Make sure to keep checking on and revising your goals to ensure the success of the business.

Expectations

It is natural for people to have expectations from others. But the easiest way to save yourself from disappointment is to keep moderated expectations so that your partner can surprise you more often with amazing work. You should know the limits and potential of your business partner and build your expectations accordingly, and you’ll never be disappointed. Otherwise, you will just keep bugging them about everything you expect them to do.

Engagement

No matter how many skills or talent your partner have, it is all useless if he/she is not driven enough. That means, your partner should have a zeal towards the business. Even if your business partner is more of an investor than the doer, he should at least be engaged in the business by attending regular meetings and all. The interest in the business is what will keep all the partners motivated enough to go on, no matter what.

Adjustment

A partner should be able to adjust himself with other partners as well as according to the business situations. This applies to all the partners of the business including you. A business will often see ups and downs during its course, and partners need to be able to roll with the times.

To create a good balance in the partnership and make sure that it doesn’t harm the business, you should continuously evaluate yourself as you do with your partner, and change yourself if and when required.

Things to Know Before Forming a Business Partnership With a Friend

Business Partnership with Friends

A business partnership is usually formed when a business is in short of financial or personal and/or other resources. When looking for a business partner, the first choice is usually a close friend or relative who has been in the same business/industry as yours and could complete the void in your business perfectly. The major reason for choosing a friend as a business partner is the trust factor. You know them, trust them and believe their skills.

But is it actually wise to get into business with your friend? What if it ends up destroying your friendship with them? What is the business fails and you start blaming each other? These and many other questions must be answered first before you plan to start a business partnership together.

Things to Know when starting a business with friends

Legalization of the partnership

A legal business partnership gives you the facility to easily start your partnership business and take the help of the law, if and when needed.

Partnership Agreement

The partnership agreement will consist of the details of the individual roles, responsibilities, share, the percentage of profits & losses, etc. so that your friends know what they are supposed to do in the business, and you do not have to continuously remind them of that.

Important Things to be Discussed in Advance

These will include the usually tough conversations like who will be the owner, the CEO, the head of product, and other things like salary, job title and descriptions, and so on. It is better if the roles and titles are assigned according to the eligibility of the individual partners.

Friendly Favours

Remember that you do not owe your friends any favours, at least not within the business, and you are not supposed to make compromises when it comes to their roles and responsibilities in the business. Each partner of the business should be treated equally. If you can do that, they only get into partnership with your friend.

New, Fresh Perspectives

A new partner in the business should be able to bring fresh ideas and perspectives. It’s a good thing if you and your friend have a lot in common and think alike, but you should also be able to present different perspectives on certain conditions. Otherwise, it might cause shortness of new, different ideas.

Personal and Professional Lives

When you include a close friend into your business, you give them access to your professional life and things that only your office staff or management know. These things are likely to get out when you socialize with the same person with whom you do business.

Pros and Cons

There are both advantages and disadvantages of doing business in partnership with a friend. It depends on which ones matter the most to you.

Pros of Starting a business with a friend

  • You get a partner that you actually know and even trust.
  • They are likely to share your beliefs, thoughts, and decisions.
  • There’s already a good communication standard between you two.
  • You better understand each other’s strengths and weaknesses and can assign roles accordingly.

Cons of Forming a business partnership with a friend

  • A friend as a partner may not receive the same level of respect from you as an unfamiliar partner will. It is more casual and less formal kind of relationship.
  • It is usually difficult for people to confront a friend the same way they will do any other partner or employee. Such confrontations may often lead to breaks in friendships.
  • It may become a matter of pride and respect between friends as to who is the boss in the mutual company.
  • The chances of your professional life overlapping with your personal (social) life are very high.

Should you do it?

Starting a business with your friend has a nice ring to it. It can become a good thing or a bad thing depending on how you take and treat it. It would be an amazing thing to build a business having your friend beside you, helping you in every step. It won’t be an easy thing and you may often face challenges when you’ll have to choose between your friend and the business, but you can deal with that in an intelligent manner.

Overall, you can certainly form a business partnership with a friend if you think it is worth it.

How to do it?

Wondering how to start a business with a friend? Well, it’s not difficult at all. You just need to register a partnership firm under your names, and then you can start right away. Make sure to consult with a good lawyer and draw a substantial partnership agreement to keep your personal (social) and professional lives separate.

Do’s and Dont’s

  • A business partner must be someone who pushes you, challenges you, and who has the skills and intelligence that complement your own skills. If you have such a friend, you should get into partnership with them. But do not make your friend a partner in business just because he’s your friend, however, doesn’t have any other special skill.
  • Define the roles of each partner clearly, and focus on your own work rather than continuously interfering in someone else’s job.
  • Make sure to legally register the partnership business entity.
  • Choose a CEO who actually deserves the title.
  • Do not make special favours for your partner friend.
  • Do not partner with a friend who thinks exactly like you and has a similar personality and even skills.
  • Do not exclude or ignore other team members and/or partners when discussing ideas with your friends outside the office (on a social gathering).
  • Do not let friendship overcome the professionalism.
  • Do maintain appropriate bookkeeping and file regular tax returns.
  • Communicate often and in a friendly yet professional way.
Recommended Reading: How to Build a Good Partnership without Ruining the Relationship

Overall, a business partnership with a friend is not a bad deal, to begin with. However, the success of such partnerships depends largely on how well you can keep your personal and professional lives from interfering with each other. The same things, more or less, are applicable to a business partnership with a spouse.

Types of Business Entities And Their Advantages and Disadvantages

Types Business Entities

Before you start a business, you need to choose the type of business entity that perfectly suits your requirements and the kind of business you are planning to start. A business entity is the legal business organization required to conduct business officially in an area. There are many reasons why you need to register your business as a legal entity. It not only provides you personal protection but also it defines the taxes to be paid by your organization, the kind of partnerships you can form, and the way your business will function and by whom.

There are 5 basic types of business entities as follows:

1. Sole Proprietorship
2.Limited Liability Partnership
3.Limited Partnership
4.Limited Liability Company (LLC)
5.Corporation

Sole Proprietorship

A sole proprietorship needs not to be registered officially. A sole proprietorship conducting a business and having no partner is the sole proprietor. It is the simplest type of business entity. These businesses can still hire employees and external help but cannot have more than one owner. This type of business has a big disadvantage that is the proprietor of a sole proprietorship remains self-liable for all the business’ obligations. So, if a sole proprietor business keeps running into money-related trouble, the creditor can bring claims against the entrepreneur.

Read Also: 7 Kinds of Business Partners You should Avoid

Sole Proprietorship Pros and Cons:

Advantages of Sole Proprietorship

  • A sole proprietor has the power of decision-making and complete control over the business.
  • There is no cost of the establishment as you can work from anywhere if your business is not registered.
  • No tax liability
  • The cost of forming such a business is zero.

Disadvantages of Sole Proprietorship

  • All the risks and liabilities are borne by the owner of the business.
  • No legal protection for the business.
  • Investors and creditors are able to collect their dues against the person or business property of the owner.
  • Getting loans is not easy.

Limited Liability Partnership

Some professional businesses and companies can form limited liability partnership (LLP) with one or more persons. In this kind of partnership, the liability of each of the business partners are limited to the company and a few other things, but not on the personal activities of other partners. A business needs to be registered as LLP with the local or state registrar to be eligible for the benefits.

Recommended Reading: How to Build a Good Partnership without Ruining the Relationship

Limited Liability Partnership Advantages and Disadvantages:

Advantages of LLP

  • A business partner is not responsible for the wrong/illicit activities of other partners.
  • An LLP is a tax pass-through entity, that means all the tax liability are divided among the partners of the business.
  • Registration of LLP is cheaper.
  • There are fewer rules associated with it.
  • It is comparatively easier to exit an LLP partnership.
  • No upper-limit on the number of partners.

Disadvantages of LLP

  • Requires minimum two partners.
  • Fundraising options are limited.
  • Less business credibility
  • In some countries, LLP can only be formed by professional service providers including lawyers, accountants, and doctors.

Read Also: 7 Signs of A Bad Business Partnership or Partner

Limited Partnership (LP)

A limited partnership firm has both regular partners and limited partners. A regular/general partner is responsible for managing the day-to-day tasks and management responsibilities of the business, while the limited partners are liable only to make their part of capital contributions, as and when required. A limited partnership is required to have at least one regular partner. This type of partnership works great in the real estate and other related businesses where the general partner can get tax and investment benefits by forming an LP.

Limited Partnership Pros and Cons

Advantages of LP

  • Less paperwork and formalities than a corporation
  • An LP is not liable to be taxed but individual partners have to file expenses in their personal income tax returns.
  • A partner is only liable for his own debt equal to the amount he invested in the business.
  • The limited partners do not have any role in the management and decision-making process.
  • The limited partner can leave anytime without dissolving the partnership.
  • This is a kind of investment opportunity.

Disadvantages of LP

  • The general partners are liable for all the risks, dues and debts of the company, as well as for the consequences of their decisions.
  • It is necessary to create a partnership agreement to define the roles of the limited partners in the company.
  • It may be essential to hold annual meetings for all the partners.

Limited Liability Company (LLC)

An LLC is the type of business entity where the liability of the company is limited. It is usually owned by one or more people. It provides protection to the owners as they are not personally liable for the debts and dues of the company. Same as every other partnership, an LLC is formed by registering your partnership with the legal office and signing an LLC operating agreement.

Limited Liability Company Advantages and Disadvantages:

Advantages of Limited Liability Company

  • It is a better alternative to LP, as it doesn’t involve any personal liability to business owners.
  • It is inexpensive to form.
  • LLC is owned by all the partners, and they can decide on how business profits, losses, shares, and management responsibilities will be shared.
  • These are usually good for real estate partnerships.

Disadvantages of Limited Liability Company

  • No or less prospect of investors
  • Doesn’t work for a complex business structure.
  • As one of LLC partners, you cannot pay yourself for the work.

Corporation

A corporation is the top type of business entity. It is usually owned by the company shareholders and managed by a board of directors, which is also formed by the shareholders. The board is responsible for making all the important business decisions and firing/hiring officers in the company.

Advantages of a Corporation

  • The ownership is transferable based on who has the most shares at a given time.
  • It gives you the ability to make public stock offerings and acquire capital.
  • Generally, business shareholders and employees are not liable for the company’s debts and obligations, while shareholders will only lose their own investment if the business ever fails.
  • Well-established business structure with roles and responsibilities clearly defined.
  • The organization employees can receive stock benefits.

Disadvantages of a Corporation

  • Expensive to form and manage.
  • More paperwork and time-consuming.
  • Shareholders can only hire/fire the managers and officers but have no direct control in the managerial process.
  • Tax is charged on the corporation as well as on the individual salaries of the shareholders, thus causing double taxation.

Read the above descriptions, types of business organizations advantages and disadvantages carefully, and choose the right business entity for your business.

How to Build a Good Partnership without Ruining the Relationship

Good Partnership

The one thing we all are afraid of when building a business partnership is ruining the personal relationship with the person. A partnership is prone to arguments, disagreements and even occasional fights. This will have a direct impact on your personal relationship with the partner. Most people, when looking for a new business partner, prefer to go with a good friend, relative or colleague whom they know and trust. While this might be good for the business, it can have a negative impact on your personal relationship with the person.

It is very much possible that you will eventually start disliking the person or liking less than before or even start hating them when you are engaged in constant fights and arguments for a while during the course of the partnership. This doesn’t mean that you should not form a partnership with a close friend or relative. It only means that you will have to take some extra measures or be extra careful not to ruin the relationship while building the business.

Recommended Reading: 7 Kinds of Business Partners You Should Avoid

Here are some things you can do to make sure that you continue liking each other even after spending years in the partnership.

Work together more often

When you are sharing a business, you need to work together very often. Even if you do have specific responsibilities and duties, you can still work side by side. When you are together more often, you’ll be able to communicate more frequently with each other rather than keeping things in mind or sharing them with a third person. It’s not enough for partners to only attend weekly meetings together, they should be doing tasks, having discussions and making decisions together. This helps to build a trust between the two that goes a long way in the relationship.

Like the person underneath

Even if the ideology or thinking of your business partner doesn’t match with that of yours. That doesn’t mean that he/she is a bad person. Remember why you liked them in the first place and keep reminding yourself of that whenever you feel like hating them. Try to be the change you wish to see in your partner. Understand their strengths and weaknesses and behave accordingly so that you can continue having a good relationship.

Make decisions together

Many business partnerships fail because one of the partners start treating himself superior to others, making important business decisions by himself and all. Even if you are given such an opportunity to be able to make decisions together, don’t do it. When a decision is made by consulting all the partners and after mutual discussion, the responsibilities and blames are shared by every partner when the decision results in a success or failure. It is natural to like a partner more when he/she respects your inputs in the decision-making process.

Let them speak

Never, ever make your business partner feel unwanted by neglecting their inputs or by not listening to them when they speak. It is important for business partners to be empathetic if they wish to establish a successful partnership and maintain the relationship with each other. You should give them enough time and space to share their ideas and then you can, in a proper way, input your thoughts on it. Try putting yourself in their shoes to understand exactly how they feel about you and about the partnership.

Let them do what they’re good at

One important way to build a friendly partnership is to understand the strengths and likes of you partners. If your business partner is good at something, you should allow them to take that responsibility. This not only increases the chance of success but also strengthens the relationship on the personal level. Also, be ready to make the sacrifice when there’s something you are both good at and want to do.

Read More: What are the Different Benefits and Risks of Partnerships?

Do not lose a good friend for the sake of building a bigger business. Respect your friendship and your partner as a person to ensure a smoothly running partnership.

7 Kinds of Business Partners You should Avoid

bad business partner

Business partnerships can either end up in a disaster or a blessing, depending on the relationship between partners. Every now and then, we hear about partnerships going bad, usually because one of the partners was not good enough or the relationship became sour over the time, and so on. So, what can you do ensure that doesn’t happen to your business partnership? There are many things. The most important one is choosing the right business partner. There are many signs of a bad partnership, but we often neglect them when choosing a partner.

Although it is not easy to differentiate goods partners from bad, not in the beginning, there are some specific bad elements whom you can recognize even from far away and need to avoid making a partner in your firm. Here is a list of seven kinds of persons you should avoid when looking for a business partner.

1. The ‘Employees’

Some people are just meant to be employees and are not able to manage the responsibilities of a business. A person with the employee mindset expects to get paid regularly, if not weekly or monthly, work only during office hours, spend time with the family, and follow instructions rather than give them. What happens when you make such a person a partner in your business? They will leave you as soon as they get a better “job” opportunity or as soon as your investment opportunities fade away. Avoid the individuals who are not open to risks or are willing to give time and energy to the partnership.

2. Those who talk much, work less

You might have seen many people who just talk and talk of how big or good they are at something but usually have no record or proof to show. These kind of people are bad for partnerships. They will expect you to do everything that matters and will be gone when it comes to taking responsibility. They will assure you that everything is going great, and you might even become a victim of their charm if you are unfortunate enough. Be sure to check and verify the CV and other credentials of the person when interviewing for a business partner.

3. A Procrastinator

These people like to delay things off and they always have the right excuse for that. They pretend that they want things to be ‘perfect’ no matter how long it takes to do it. It seems like the right decision at the time, but you usually end up delaying important decisions, piling up meetings and other things. Some of these people are plain lazy and prefer to leave things until the deadline when it usually becomes too difficult to finish on time. Avoid such excuse-giving procrastinators if you wish to protect your business from partnership conflicts, and choose a partner who is able to make the right decision at the right time.

4. The ‘Inconsistent’ ones

A person who is not able to stay with one decision or like to switch things very frequently can be termed as ‘inconsistent’. These people like to experiment with different things and decisions, which might be a good thing for the business, but not if you are a startup and can’t afford to lose money on unnecessary things. You can identify this trait by simply looking at the work profile of the potential partner. If they quit or switch jobs very often and frequently, the chances are that they will do the same with the business.

5. The ones who are always ‘right’

Or at least they think they are. These people like to make all the important business decisions without even discussing with other partners. They assume that discussions are only going to diminish the value of the decision. They are even ready to demean other business partners who disagree with them. Also, they are usually eager to blame everyone else but themselves when a decision goes wrong. Try avoiding such people when choosing a business partner. Find someone who is good at communicating, not dictating.

6. Bad with people

There are many people who do foolish things knowingly and then there are ones who do not even know what constitutes as good behavior and what doesn’t. They do not care how they treat other people and often end up offending someone. A business partner is no good if he cannot treat business customers and clients well. If your prospective partner is bad with people, you shouldn’t consider making him a partner in the business. You will never see them coming, and everything will be ruined even before you realize it, just because they opened their mouths.

7. The ‘Dreamer’ ones

It is good and often necessary for a businessperson to have a dream, but it becomes a problem when dreaming is all that he does. Avoid making a business partner who dreams of becoming rich very soon just because he thinks he has a great idea but doesn’t actually know anything about running a business. They normally plan to use your business as a ladder to reach the next step of success. While it’s important for businesses to stay optimistic and positive, they should also stay close to the reality.

Recommended Reading:  How to Protect Your Business from Partnership Conflicts

A business partner should be like ‘other half’ in your business relationship where you are the first ‘half’, and you two together should complement each other. He should be willing to give the same efforts, work and time to the business as you do, and you should be able to respect him and his inputs as a partner.

7 Signs of A Bad Business Partnership or Partner

bad business partnership signs

Not all partnerships are made to succeed. If we talk about statistic of business partnership then 80 percent of partnership ultimately fail. Even after a lot of research and thinking, you might end up with a partner who is just not right for you or your business.

But there are signs; if you look carefully, you can see them. In this article, we will be sharing some helpful tips to identify the signs of a bad partner or partnership. By following these, you can successfully manage to spot a bad partner before going into the business with him.

Also Read: Different Benefits and Risks of Partnerships

Here are some signs of bad business partnership or partner

1. Unwillingness to sign a partnership agreement

Like I said, the signs will be there. A partnership agreement is one of the most important things for business partnerships. It mentions and provides solutions for the best and worst case scenarios of the partnership. If a partner is refusing or showing an unwillingness to sign the agreement, it possibly indicates that they are not as dedicated to the partnership as you or other partners. The reason might be anything, such as no confidence in the business, lack of commitment, different goals, etc. This should be a wake-up call for you.

2. Unbalanced skills and duties

A perfect partnership is the one where the weaknesses of a partner are compensated by the strengths of the other. This is what you should be looking for when you search for a business partner. Even if you do not manage to find the exact person, your partner must be someone who is willing to take the responsibilities you are not comfortable with and vice-versa. Make sure to discuss the same when drafting the ‘roles and responsibilities’ in the clause of partnership deed. If you think that the other person, with his abilities and skills, can only become a burden for you, then it is a sign that you should probably step back and rethink.

3. Too good to be true

If your potential partner, his skills and interest sound too good to be true, it probably is. If someone approaches you saying things like it was his dream to always become a partner in this firm, and this is the best company in the market, and so, what would you think? There is a good chance that he might be true and he could actually be interested in the company or possess the skills he claims. But why take the risk? If it sounds too good to be true, you should consider that as a sign and try making a better decision for your sake and your business’s.

Read Also: 7 Partnership Factors That Can Make or Break Your Business

4. Compatibility

A business relationship, like a marriage, needs compatibility in values and thoughts of the partners. If you and your partner cannot think alike and share common goals, then the partnership is doomed from the very beginning. The partners in a business must agree not only on the goals but also on the ways to achieve those goals. If they are not on the same page from the start, they will probably never be, and it would be too difficult to manage the business relationship.

5. Different financial goals

If one partner is in the business only for making money, chances are that they will eventually get bored of the business, especially if it takes too much time to generate substantial income from the business. Money is an important thing, but it should not be the most important thing for the business. Even in the short-term, it might become too difficult to make a wise business decision when all one partner is thinking about is money. If you find any such sign, you should probably move out of the deal.

6. Ulterior motives

It is normal for each person to have his own goals and targets. Even your potential partners might also have some goals in mind that he wants to achieve with this partnership. This is not necessarily a bad thing. But you should make sure that their personal goals do not affect the partnership or business in any harmful way and they do not have any ulterior or ill-minded motives behind their interest in the partnership. For this, you should do a proper background check to know what else your potential partner is involved in and if he is running some other venture as well.

7. Communication problem

Healthy communication is critical to the success of a relationship. If you are not able to talk to each other properly or argument on everything, this might not get better with time. Some signs of bad communication include taking too much time to respond to your emails and calls, supplying unreliable and/or incomplete information, being dull or moody, lying or hiding the facts, etc. All these and many other signs show that the person is either not comfortable or not interested in working with you. So, you probably shouldn’t go into partnership with them.

These points will surely help you filter out the bad potential partners and ensure the success of the partnership. There are many other things like their inability to compromise, over-spending nature, a habit to argue on everything, disagreements, inability to discuss properly, reluctance to work, etc. which you can consider to identify a bad partner.