What Are the Roles of Partners in a Business?
A business can be run single-handedly or be a joint venture between two or more people. The partners are the business's owners, and they assume the risk for business activities. A business run by a partnership is governed by a set of terms and conditions laid down in a written document called a"partnership deed."
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Strategic Planning
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At the outset, the business partners need to plan the use of their resources, such as how much capital to invest and how many people to hire. For this they might adopt a Strength, Weaknesses, Opportunities and Threats -- or SWOT -- analysis technique. They also must draft the hierarchy to be followed, their long-term and short-term goals and how to cope with a sudden crisis.
Financial Analysis
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Financial planning plays a major role regarding the proper functioning of the business. The partners must evaluate their investments, their assets and liabilities in the market and calculate their profit and loss . The partners should be on the lookout for ways to generate maximum revenue, increasing sales volume, keeping track of liabilities and return on investments, or ROI. Business partners also bear the debts and obligations of a business, and if required, they may need to part with their personal belongings.
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Human Resource Management
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Human resource planning also plays a pivotal role in proper functioning of a business. The partners must plan out recruitment, induction processes and training. The partners also monitor payroll processing done by human resource professionals and do performance appraisals for the employees. For the betterment of the organization and to achieve long term goals, rewards and recognitions are given to employees.
Public Relations
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The partners should have broad knowledge since they are the decision makers of the business. So while one partner caters to the business aspect, another partner can concentrate on the internal side. Public relations play a key role in making or breaking the image of an organization and hence the businessmen should take a step forward to act as goodwill ambassadors for the company. Their sole aim is customer satisfaction at the end of the day.
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