Partnership is fundamental to our makeup. In God the corporate and the individual exist together: Father, Son and Holy Spirit without diminishing one another. We are made in His image and also to exist in relationship. In Genesis 2:18 God says, “it is not good for man to be alone. I will make a helper suitable for him.” The root of helper is the Hebrew word ‘ezer’, with the sense of making complete. The word occurs many times in the Old Testament with reference to divine help in battle. We need to work in partnership with God. We may also need to work with others who have gifts that differ from our own, both for our fulfillment and so that our business can realize its full potential. Partnership is about teamwork, unity and cooperation. Above everything it is based on mutual trust and respect. Section I of the Partnership Act 1890 defines partnership as “the relation which subsists between persons carrying on a business in common with a view of profit. “Yet it is much more than a joint venture; it is a mutual dependency, reliant entirely on the integrity of its members.”

Advantages

Partnership minimises investment, while maximising economies of scale. There will be dual or multiple qualifications, experience, expertise and capital to invest. Each partner’s assets increase the business’ ability to borrow needed funds. Losses are divided among partners, depending on liability protection. Shares can be sold internally without costly outside evaluation. Complementary skills allow diversification in business and division of responsibilities on the basis of interest and expertise.

Partnership Means Having Someone Alongside With Whom To Shoulder The Responsibilities Of Management 

Another advantage is that a wider market is accessed than would be possible for a sole proprietor, without costly recruitment or acquisition. Yet the business can potentially respond more quickly in a corporate body to changing market conditions. Commodity duplication can be avoided, providing consumers with a better value and quality of product. Perhaps the greatest advantage is the elimination of potential or existing competitors. Partnership means having someone alongside with whom to shoulder the responsibilities of management and decision-making. “if one falls down, his friend can help him up…but pity the man who falls and has no one to help him…up though one may be overpowered, two can defend themselves” (Eccles. 4:10, 12). Partners must have similar ethics and objectives, or both the business and their relationship will be torn apart.

Factors To Consider                         

Partnership is easy to get into but difficult to withdraw from without a great deal of discomfort. Though it is not required by law, it is wise to establish a partnership agreement to clarify the roles, rights and duties of each partner. Banks may wish to see a copy of the agreement before lending. It is essential to identify in writing, the precise moment that a partnership comes into existence as the relationship can occur informally or inadvertently without prior intention. With differing assumptions and expectations, irreconcilable disputes may arise in a business which could otherwise have been successful. Initial legal fees are insignificant when compared to the cost of establishing rights and duties later in court. It is vital that partners are of one mind. There will be discord if one wishes to reinvest all profit in the business, while another expects the firm to pay for his cars and business meetings abroad. Jesus said, “Every household divided against itself will not stand” (Matt.12:25). Neither Christian faith, professional qualifications, nor high standards of practice will prevent conflicts or mistakes from occurring.

A comprehensive partnership agreement will identify:

l  The beginning and duration of the partnership (not normally fixed);

l  Capital and loss arrangements;

l  Ownership of partnership property

l  Issues of management, accountability and financial authority;

l  Procedures for expansion, dissolution and conflict resolution;

l  Provision for absence and modification as business changes;

l  Personal issues such as pensions and holidays.

It is important to consider indemnity cover and whether partners want general, limited liability or salaried status, depending on the desire for an active role in management or an inactive role with limited liability protection. Another important element to put in place is life insurance to protect partners from large inheritance tax bills. In the absence of a partnership agreement, the 1890 Partnership Act applies in law. This must be expressly excluded where it is not intended that it should apply.

Unless otherwise agreed, all partnership shares will be equal and members will be held liable for one another’s mistakes. Though the relationship should be built on trust, a non-competitive clause may be used to prevent partners leaving to establish themselves in competition.

In accepting a partnership from an existing company, it is important to research the firm’s reputation and existing partners; is there a mix of skills and ages? Is the client base secure? Current accounts data should be made available to you. Are the terms of the offer clear? Is this a promotion or an offer to share in existing problems and liabilities? In other words, are you the only alternative to receivership? What is the company vision and what are its values? Partners are bound by a duty of good faith to make transactions only for the benefit of the partnership with full disclosure of all accounts, not entering into any competition with the firm. This does not mean that, they operate under Christian principles.

Partnership with dishonesty is costly under God’s rule. For Ananias and Sapphira it meant death. See Act 5:1-11

In choosing partners, it is important to research their experience, reputation and situation. Are they ready to invest capital? Do they have the skills you need to target a wider market than you could reach alone? Are your aims and strategies for the business well matched? Do you already have a relationship outside of work?  This does not have to be a negative issue but needs consideration. Siblings and Marriage partners have the advantage of knowing how the other thinks, reacts under pressure and is motivated. They may already have conflict resolution skills in place.

Consider how you want the firm to be perceived and marketed. The title of a partnership business usually consists of the names of all the individual members and title not created in this way may need government approval. Are your images compatible? Does your potential partner have integrity? Will he be tested? An organization is only as ethical as its managers.

Commitment to the partnership will be at least as important as technical ability. Just because someone is a Christian does not mean that they hold all the right values. However, it may be easier to partner with a Christian as values and priorities influence decisions far more than market forces. God can be given the controlling interests in the business as members seek to put Him first and hear His direction. Joshua and his army were in partnership with God and obeyed the most bizarre instruction to march around the walls of Jericho but their obedience brought them victory in His name.

Vision

If you have a vision, call or desire to be in partnership, pray and trust God to call others into that vision with the skills you need. His involvement does not begin until He is invited. Pray for people with wisdom and discernment, who are willing to work hard. After David had conquered Jerusalem, God sent him “men…who understood the times and knew what Israel should do.” Along with “brave warriors ready for battle and able to handle the shield and spear…until he had a great army, like the army of God” (1 Chronicles 12:32, 8, 22). God had called David to complete a mission and the warriors recognized this: “success to you and success to those who help you, for your God will help you.” (vs 18).

In following the Lord’s plan there may be opposition. You will need people who will help you because they believe in you. There will be victories and failures, pain as well as success and each person will need the assurance that God was in the venture from the start.

Make sure that it is God’s call you are heeding, because “unless the Lord builds the house its builders labour in vain” (Ps. 127:1).  Those who defected from Saul to join David did so while he was still a fugitive, before the glamour of kingship, because they saw that God was with him. Remember those whose loyalty to you is tried and tested. Should they be involved? Consider how your business venture will affect those close to you. You may have to spend more time with your business partner.

Our Brother’s Keeper

For the Christian, partnership is more than a contract; it is a covenant to be our brother’s keeper. We must recognize that business has its temptations.

These can come in the form of relationships, where cheating may escape detection, or in handling cash and overseeing valuable merchandise. Whether or not our ‘brother’ is a Christian, we need to do everything possible to eliminate that temptation and produce accountability.

As with any other relationship, a business partnership takes time, energy and hard work. If we are liable for one another’s errors we must create an environment where mistakes can be brought out into the open and discussed. We must focus on communicating frequently, never letting the sun go down on our anger.

In a Christian partnership we should meet together regularly to commit the business to God, pray, assess and evaluate. Being rooted in prayer reinforces unity and cooperation and delivers us from the devil’s attacks. With unity of heart and purpose we can witness to outsiders, working to transform the marketplace by example rather than conforming to the world’s standards. 

First published in COUNTDOWN Vol.4 No.4

By:Countdown