1. Finances. How profitable is the potential partner? Take a look at the organization's annual report (if available) to see if you can spot problems that you could help address. What is the trend line of profits? Do their costs seem to be higher than those in the industry? Are their sales in decline?
2. Competition. How is the potential partner doing in the marketplace? Are their sales growing or declining? What is their market share? What have their major competitors done to improve their position in the marketplace? What innovative strategies have their competitors used to jump ahead?
3. Market trends. How is the industry doing? Is it expanding or in decline? Why is this so? What could you do to help the potential partner outperform the industry averages?
4. Organization. How is the potential partner's business organized? Is it hierarchical or flat? (It is easier to do business with an organization that is flat and flexible.) Is the organization structured along product or process lines? (Organizations structured around processes tend to be more customer focused and therefore more disposed to partnerships that benefit their customers.)
5. Regulations. Does the potential partner operate in a highly regulated industry? Are there government pressures that, if enforced, could reduce the partner's effectiveness? Are there things that you could do to reduce their dependency on bureaucratic red tape?
6. Vendor philosophy. How does the client view dealing with vendors? Do they have many long-term contacts with vendors? Are they loyal to their preferred suppliers? How closely integrated do they get with their best suppliers? Do they tend to buy on price or service? How do they view your industry? Do they see it as a necessary evil or as a value-added opportunity?
7. Performance criteria. How specific is the potential partner with regard to performance standards? Will they want you to sign service contracts? Will the reaction to non-performance be punitive? Are you capable of meeting stringent performance criteria?
8. Key players. Who are the key players? Are they people that you would enjoy working with? What are their business philosophies? Are these similar to yours?
9. Relationships. How is your relationship with the potential partner? Is it a long-term one? Have you worked well together? Has there been a history of give and take? Do they see you as a leader in your field? Do they value the relationship as it now exists? What partnerships have they formed with other suppliers? How successful have those been? Favorable answers to most of these questions would suggest that you have a basis for creating a partnership agreement.

When you start in the accountancy profession you are told that the ultimate aim is to achieve partnership. Pass your exams, keep your nose clean, put in the hours and eventually you will make it and be able to sign on behalf of the firm. Then untold riches will be yours.

I am a writer, not an accountant, but many of my friends and relations are accountants and from them I have pieced together a very strange picture of the role of the partner in the big accountancy firms today.

The brightest?

First of all I always thought that it was the brightest who are appointed to the partnership. This may have been the case at one time but now isn't necessary. Most large professional firms invest considerable resources to have departments full of senior managers with the sole task of to reviewing other professionals work. These are people whose whole lives are devoted to ensure that all work leaving the firm has a consistent high quality and thus protect the firm from litigation. In the olden days, that is 10 years ago, partners did this. It was the partners who were responsible for reviewing the quality of everything that would go out in the name of the firm. Partners would be chosen primarily for their technical ability and their personal quantities would be a purely a secondary factor. The professional reviewing department frees today's partners from needing to have the ability to do this work and so they are free to concentrate on the nitty-gritty of drumming up new business and office politics

PR role?

Increasingly a partner's role is seen as developing client relationships. This includes wining and dining and also giving overall direction to the work of the managers under them. Partners may not necessarily be competent to give detailed advice to clients: they may just be glorified P.R. referral points who get one of their specialist managers to get back to the client with an answer. Partners no longer become industry experts as today's auditing pattern means that they will only develop a relationship with the client for a few years before the partner responsible for that client is changed.

Boosting profits

Conflicts often arise between the need for client care and the firm's self- interest. In years gone by it would be that the client would be put first and the firm's interest would not enter the equation. This situation is now reversed and many newer partners are primarily motivated by self interest - linking their self interest to the self interest of the firm. Consequently we should not be surprised when we hear of a partner of a well-known firm saying in a meeting with other professionals "Stuff the client. We want to get the deal done".

Salesmanship

Thus the way to become a partner is not through technical excellence but by developing the personal qualities and style of salesmanship that fits the corporate ethos of the particular large firm concerned. If your firm has just appointed some young, loud-mouthed lad, full of bull to the partnership, who is not technically very bright, you now know why!

SOLE PROPRIETORSHIP	PARTNERSHIP	CORPORATION
 	 	 
you own and operate yourself, the proprietor and his or her business is considered one and the same	joint effort between 2 or more people, each partner is liable for the actions of the other	is an independent personality, a separate legal entity
 	 	 
you run the business using your own personal bank account, all profit or loss is yours alone	partners share equally the capital and profits of the business, a business bank account is easier	the owner is a shareholder of the corporation but s/he does not own the assets
 	 	 
keep separate financial records	keep separate financial records	the corporation keeps its own complete set of financial records
 	 	 
business profits are reported on your personal income tax	business profits are reported on your personal income tax	profits and losses are held within the corporation
 	 	 
the sole proprietorship dies with the owner	the business may not survive the death of a partner	a corporation can live forever as long as it is registered with the Corporate Registry
 	 	 
you are personally liable, not covered by any specific legislation	partnerships are governed by The Partnership Act	the corporation is liable for its business debts not the owners
 	 	 
cost of setting up - optional: may wish to search and register your trade name	cost of setting up - may or may not have to file a Declaration of Partnership with Corporate Registry	cost of setting up - sizeable corporation fees, possible legal, bookkeeping & tax preparation fees