Kodak invented the digital camera in 1975 but dropped it for fear it would threaten its film business. If they hadn’t have done so, they could have dominated the industry and still have a thriving business. Kodak once said, “We don’t sell film, we sell memories.” The company who made “the Kodak Moment” part of American culture forgot who they were.
In my previous article, I wrote about the pros and cons of partnerships. When we formed ours, there were many things we didn’t plan for in advance, but I was fortunate that we had an amicable split due to changing priories and goals, not ill-will. Looking back, I can see how under different circumstances, things could have ended badly. So here are some safety tip to consider when forming a partnership—before you shoot your eye out.
New businesses characteristically fail at an alarming rate. Between 2007 and 2010, the failure rate for U.S. small business rose by 40 percent. Yet, according to the U.S. Small Business Administration, companies with multiple owners are more likely to survive longer than sole proprietorships. What’s more, a 2008 study showed that the average revenues for partnerships increased 157 percent since 1980, while revenues for the average sole proprietor decreased 51 percent during the same period. The study also reported that the average sole proprietor’s net income in 2008 was around $12,000.
The facts seem to make the case for partnerships, yet 72 percent of small businesses are sole proprietorships. Partnerships have their pros and cons, and at first glance, the pros might seem to outweigh the cons. Yet, a partnership gone bad can make you wish you’d never gone into business in the first place.
Get Web Design Clients!
If you’re struggling to get clients, then Web Design Clients Galore could make the biggest difference in your web design business this year.
Learn how to get a constant supply of high-paying clients, and all the web design projects you want.
Thanks for visiting. I’m a Marketing Evangelist, Blogger and Sales Trainer.
I get excited about geek stuff. But I’m also passionate about helping people and companies reach their fullest potential and becoming wildly successful.
That’s why I love helping businesses figure out how to market (especially web marketing) and why I train sales people to be the best they can be at what they do.