9 Things to Consider Before Forming a Business Partnership
Getting into a business partnership has its benefits. It allows all contributors to share the stakes in the business. Depending on the risk appetites of partners, a business can have a general or limited liability partnership. Limited partners are only there to provide funding to the business. They have no say in business operations, neither do they share the responsibility of any debt or other business obligations. General Partners operate the business and share its liabilities as well. Since limited liability partnerships require a lot of paperwork, people usually tend to form general partnerships in businesses.Things to Consider Before Setting Up A Business PartnershipBusiness partnerships are a great way to share your profit and loss with someone you can trust. However, a poorly executed partnerships can turn out to be a disaster for the business. Here are some useful ways to protect your interests while forming a new business partnership:1. Being Sure Of Why You Need a PartnerBefore entering into a business partnership with someone, you need to ask yourself why you need a partner. If you are looking for just an investor, then a limited liability partnership should suffice. However, if you are trying to create a tax shield for your business, the general partnership would be a better choice.Business partners should complement each other in terms of experience and skills. If you are a technology enthusiast, teaming up with a professional with extensive marketing experience can be quite beneficial.2. Understanding Your Partner’s Current Financial SituationBefore asking someone to commit to your business, you need to understand their financial situation. When starting up a business, there may be some amount of initial capital required. If business partners have enough financial resources, they will not require funding from other resources. This will lower a firm’s debt and increase the owner’s equity.3. Background CheckEven if you trust someone to be your business partner, there is no harm in performing a background check. Calling a couple of professional and personal references can give you a fair idea about their work ethics. Background checks help you avoid any future surprises when you start working with your business partner. If your business partner is used to sitting late and you are not, you can divide responsibilities accordingly.It is a good idea to check if your partner has any prior experience in running a new business venture. This will tell you how they performed in their previous endeavors.4. Have an Attorney Vet the Partnership DocumentsMake sure you take legal opinion before signing any partnership agreements. It is one of the most useful ways to protect your rights and interests in a business partnership. It is important to have a good understanding of each clause, as a poorly written agreement can make you run into liability issues.You should make sure to add or delete any relevant clause before entering into a partnership. This is because it is cumbersome to make amendments once the agreement has been signed.5. The Partnership Should Be Solely Based On Business TermsBusiness partnerships should not be based on personal relationships or preferences. There should be strong accountability measures put in place from the very first day to track performance. Responsibilities should be clearly defined and performing metrics should indicate every individual’s contribution towards the business.Having a weak accountability and performance measurement system is one of the reasons why many partnerships fail. Rather than putting in their efforts, owners start blaming each other for the wrong decisions and resulting in company losses.6. The Commitment Level of Your Business PartnerAll partnerships start on friendly terms and with great enthusiasm. However, some people lose excitement along the way due to everyday slog. Therefore, you need to understand the commitment level of your partner before entering into a business partnership with them.Your business partner(s) should be able to show the same level of commitment at every stage of the business. If they do not remain committed to the business, it will reflect in their work and can be detrimental to the business as well. The best way to maintain the commitment level of each business partner is to set desired expectations from every person from the very first day.While entering into a partnership agreement, you need to have an idea about your partner’s added responsibilities. Responsibilities such as taking care of an elderly parent should be given due thought to set realistic expectations. This gives room for compassion and flexibility in your work ethics.7. What Will Happen If a Partner Exits the BusinessJust like any other contract, a business venture requires a prenup. This would outline what happens in case a partner wishes to exit the business. Some of the questions to answer in such a scenario include:
How will the exiting party receive compensation?
How will the division of resources take place among the remaining business partners?
Also, how will you divide the responsibilities?
8. Who Will Be In Charge Of Daily OperationsEven when there is a 50-50 partnership, someone needs to be in charge of daily operations. Positions including CEO and Director need to be allocated to appropriate individuals including the business partners from the beginning.This helps in creating an organizational structure and further defining the roles and responsibilities of each stakeholder. When each individual knows what is expected of him or her, they are more likely to perform better in their role.9. You Share the Same Values and VisionEntering into a business partnership with someone who shares the same values and vision makes the running of daily operations considerably easy. You can make important business decisions quickly and define long-term strategies. However, sometimes, even the most like-minded individuals can disagree on important decisions. In such cases, it is essential to keep in mind the long-term goals of the business.Bottom LineBusiness partnerships are a great way to share liabilities and increase funding when setting up a new business. To make a business partnership successful, it is important to find a partner that will help you make fruitful decisions for the business. Thus, pay attention to the above-mentioned integral aspects, as a weak partner(s) can prove detrimental for your new venture.
Get Affordable Home Insurance in Calgary
There are many reasons to get home insurance in Calgary. First of all, you want to make sure your house, cottage, or tenancy is covered for damage, theft, and flooding. Secondly, you want to know if you are overpaying for home insurance, and if you are, you want to know if you have access to a more affordable insurer. We can help you connect with a live insurance broker who will give you the information you need to insure your house in Calgary. You can also request a quote from at least 10 Canadian home insurers, so you can compare rates.Typical Home Insurance Premiums
Home protection prices are different for rented and owned properties. Tenants insurance for rented homes covers the basic contents of a house and some liability (you may need a separate policy for fine art, wine collections, furs, and other expensive, atypical items). Tenants insurance is often cheaper than homeowners insurance.Homeowners insurance covers the building and its exterior, as well as risks connected to theft, fire, earthquake, etc. Since the value of the building is much higher than the contents of a rented unit, homeowners insurance premiums are significantly higher than are the premiums for tenants insurance.In order to have a broader picture of home insurance rates in Canada, here are statistics of the average home rates in Alberta, Ontario, British Columbia, and Canada. These statistics are provided by InsurEye.In Alberta, monthly house insurance rates are typically $84 for homeowners and $49 for renters.In Ontario, monthly home insurance rates are typically $78 for homeowners and $42 for renters.In British Columbia, monthly home protection rates are typically $85 for homeowners and $47 for renters.Across Canada, monthly home insurance rates are typically $77 for homeowners and $41 for renters.Examples of Calgary Home Insurance Quotes
Home insurance quotes in Calgary depend on the size of a building, its location, and possible risks (like flooding). The following examples of house insurance quotes will help you better understand how much home insurance can potentially cost you:· For a 2,800 square foot, two-storey house in Calgary, in the neighbourhood of Altadore near River Park, expect approximately $98 monthly ($1,176 a year).· For an 850 square foot, two-bedroom condominium on the 12th floor in downtown Calgary, next to Central Memorial Park, the insurance costs are approximately $23 a month ($276 a year).· For a one-storey house in Calgary, in the Mount Pleasant neighbourhood, located close to 4th St NW and the Trans-Canada Highway, the insurance is approximately $62 monthly ($744 a year).Flooding Coverage for Homes in Calgary
Since Calgary often sees flooding, every homeowner should be prepared for the possibility of this risk and should understand the main aspects of home protection and flooding. One thing you should keep in mind is that home protection in the flood-endangered areas of the city is more expensive because of the much higher risk.There are four main types of flooding. It is important to remember that your home insurance policy treats each of them differently:1. Overland flooding occurs as a consequence of water (rain or melting snow) entering your house from the outdoors. Standard insurance in Calgary does not cover expenses from overland flooding. However, some companies do provide coverage for this type of flooding at an additional cost.2. Roof leakage can be covered or not covered, depending on the factors that caused it. If the roof was in poor condition from the beginning, your insurance provider will not cover the damage. Your home insurance will most likely cover damage from a natural cause, like hail.3. Your insurer will cover plumbing issues, only if you comply with the rules in your policy, such as having somebody visit your home while you are not there for extended periods of time (for example, while you are on vacation).4. Sewer backup happens when wastewater is driven back into your house. Traditional home protection does not cover this type of flooding. However, you can always purchase this type of coverage as an addition to your home insurance policy.The Difference Between Condo and Tenants Insurance in Calgary
Owners of condos can purchase homeowners insurance for their condo. The condominium corporation purchases commercial condo insurance. The difference between these two policies is in what part of the condo they cover. The homeowners insurance covers the contents of the condominium. The coverage also includes protection for upgrades, locker contents, third party liability, theft, additional living expenses, and sometimes special insurance assessments.The commercial condominium corporation’s insurance covers the building’s exterior (envelope), together with its infrastructure and common areas.Condo renters in Calgary need tenants insurance to cover the contents of their condos. This type of protection is usually mandatory and is part of the rental contract. In addition to the coverage of contents against theft, fire, and other hazards, the insurance also extends to third party liability and additional living expenses. Living expenses are for the cases when the condo is unlivable (due to earthquake, flood, fire, etc.), so the renter is forced to live in a hotel or rental unit until the condo repairs are complete.10 Ways to Save on Home Insurance in Calgary
Here are a few ways to save on your home coverage. For more savings, get an insurance quote and contact an insurance expert.1. Professional membership. Members of unions or professional organizations can get a discount on their home insurance. Insurance companies, like Meloche Monnex Insurance, also provide their members with insurance policies.2. Hydrant or fire station. If your home is close to one of these things, you can ask for a discount from your insurance provider.3. Discounts for students. Some insurance providers give discounts for students. As for dependent students who live alone, their parent’s home insurance may cover the insurance on their apartment at no additional charge. For example, Desjardins Insurance provides this discount.4. Discounts for graduates. TD Insurance is an example of an insurer that offers discounts for graduates from post-secondary institutions like McGill University or the University of Toronto.5. Quit smoking. Many insurance companies increase home protection premiums for smokers due to the potential fire risk.6. Change your policy. Those with tenant insurance should rethink the size of their coverage – perhaps some things that do not have much value do not need additional coverage.7. Security of your home. Does your home have additional security, like a doorman or security guard? This might get you a discount from your insurance provider.8. Direct insurer. Also called a captive agent, a direct insurer represents one company and can offer their products for a cheaper price when compared to insurance agents or brokers.9. Consumer reviews. Other home insurance consumers often share their experiences of purchasing insurance and making claims. Thanks to these insights, you will be able to avoid unexpected costs and overpayment.10. Compare prices. You can get home insurance quote in Calgary for a cheaper price thanks to the price comparison tools that show you the rates of the same services provided by different insurance companies.
Defying SEO’s Extinction
Some SEO practitioners today think of SEO as an unmoving industry that shows no change in terms of internal and technical processes. They also say that some SEO techniques that exist three years ago are still in use, regardless if these still help on optimization or not. In some cases, obsolete techniques that still exist are now coined as Black Hat techniques, which professional White Hats despise.Expert writers, bloggers, and analysts on the Web have expressed their early predictions about the newest SEO methods that will continue to dominate the incoming year. These methods have been on top since 2010. However, people consider these predictions as nothing but the same predictions and techniques we use ever since this industry was born, concluding that SEO has no future in terms of method improvement.On the other hand, a great flock of experts thinks that ‘improvement’ is SEO’s strongest power to survive in the market. Some industries like PPC and MLM have stopped growing in terms of improving their internal processes to expand their niche, to the point that their method has earned negative popularity from people. Pyramid schemes, later coined as pyramid scams, had sprouted everywhere in the market and later lead to a massive network marketing business downfall. SEO, on the other hand, has taken a different route, and has improved because of its practitioners’ incessant search for innovations.Fueling the growth of SEO is the nonstop improvement of technology-driven businesses like mobile phones, social media sites, and other Web-related industries, for they play a big role on SEO’s earlier methods. Having mentioned this, it clearly shows how SEO acts as an Internet and Web-centered business, that whatever positively happens on the Internet will benefit the industry. Moreover, as industries become reliant and dependent on the Web, competition swells up as companies vie for rankings, mainly, on search engines. This solidifies the idea that as long as industries depend on the Web, and as long as they put their faith on search engines as an alternative to costly traditional advertising, the SEO industry will never fail to improve.Inside the SEO industry, independent and large-scale SEO companies vie for domination as well, together with their respective SEO resellers and end clients. The healthy SEO market continues to grow and give birth to multitudes of new sub-industries like SEO Reselling, SEO web designers, SEO writers. It even paves way to the inception of the ever-improving White Label SEO, SEO Reseller Packages, and Private Label SEO.In this light, all experts who predicted SEO’s death are now hibernating in a faraway land, and some hide under a pseudo-domain name to avoid the self-inflicted infamy. Moreover, those who despise the industry over weaker MLM and direct-selling business have shown respect for SEO, and have even shown undeniable success in this industry.And as a humble harbinger who never believed those predictions, I greatly proclaim SEO’s domination up until, and as long as, the World Wide Web exists.