We Are Partners

The next day Mr. Boden invites Dmitry to a restaurant for a business lunch. Johnny Bodes wants to get some extra information about Dmitry's company Eurosport. Dmitry is also interested in cultivating business relations.

Mr. Bode: How are you today, Dmitry?

Dmitry: I'm fine, thank you. And you?

Mr. Bode: I'm all right. Thank you.

Dmihy: Pd like to learn a bit more about your company. I understand that Eurosport is a young company.

Dmitry: Yes, it's a startup, but it's growing fast. In the four years since its launch, the company has grown to 35 employees and gained a reputation for reliability and professionalism. In this folder you'll find key figures illustrating the company performance. Here you can find our revenues, turnover, profit before taxis. In our industry a common strategy is to go big from the very start, but Eurosport has taken a different tack. Until recently, we'r'e been expanding cautiously.

Mr. Boden: I like this down-to-earth business approach. It's a part of our key strategy too.

Dmitry Johnny, could you tell me about your company. How many people do you employ?

Mr. Bode: Dynateam Innovations has its headquarters in Cleveland, Ohio. But we have branches in 5 other states. The staff numbers 200 people. We run a chain of outlets, selling sportswear and sports equipment for both professional sportsmen and amaturers.

Dmitry. I've noticed the letters Inc. on most of the business cards here in Denver. Corporation seems to be a popular way of organizing a business.

Mr. Bode: Yes, you are quite right. There are a number of tax advantages to incorporating. Many importing and exporting firms incorporate in order for the owners to be protected from product liability. I presume, you know that in corporation liability is limited to the assets of the business. I am convinced, that it is economically better for a business to incorporate when its profit before taxes reaches $ 50 000 USD a year. And you? Have you thought of incorporating as a form of attracting investments?

Dmitry: Not, really. Eurosport is a partnership. My partner Vitaly Mirotvorsky and I, we are the owners and each partner's contribution complements the other's.

Mr. Boden: А good partnership in business isn't very different from а good marriage on condition that you have found the right formula for success.

Dmitry: I quite agree. Vitaly and 1, we are both involved in day-to-day operations. Vitaly deals with the company's finances and 1 have business savvy and negotiate deals.

Mr. Boden: Do you have any written agreement specifying each one's role in the company?

Dmitry: This idea has never crossed ту mind. What сап be included in such agreement.

Mr. Boden: I'll tell you. First of а11, the slitting of the profit and loss, especially if it's not а 50-50 venture.

- Obligations, tasks and duties of each.

- Initial investment and liabilities of each partner involved.

- Ownership in case of one partner's intention to remove himself from the venture.

- Will а new partner ever be allowed into the company, and if so, how will he buy into it

and how will he share the assets, profits, liabilities?

- How and when salaries and bonuses will be paid?

- In case of irreconcilable differences between partners, what are the options for the company's future?

- Сап one partner or director sell shares or his part to another party without asking the other partner first?

- Hiring practices: will friends or family members be allowed to become involved in the company or not?

And there is one more thing one has to keep in mind. 1f the company is not incorporated, the partners are jointly liable for the debts of the company. This means that if one partner is insolvent, the creditors can pursue the other to collect all the money they are owed, even if the company is owned 50% each.