So, you have a great idea. Should you start a business alone or with a partner? Here is a list of the pros and cons that can occur with a partner.
The Pros
• Diverse Expertise
When working with business partner/s everyone will be an expert in a different part of the business. It helps spread the work load around, and not just be one person’s responsibility.
• Spreading Risk and Start-Up Cost
The start-up cost of a small business can be hefty; more expensive than some believe. If you go into business with other people, the cost will be shared.
• Mutual Support
Having a great support system is extremely important when starting a business. Surrounding yourself with people who have similar passions can lead to a more successful business.
The Cons
• Shared Profits and Total Control of Business
All profits are shared between the owners of the business. Like that of sharing the profits, no one person has total control over the business. Almost everything is shared. Decisions are made mutually. Because of this, conflict can happen quite often.
• Liability
Both or all partners are liable for some of the business. If someone leaves town or the business, it can leave the other partner/partners in a bad position. They will then be liable for whatever that person had.
• Kill a Friendship
It can be extremely risky to go into business with a friend. Confrontation can be hard between friends. Over-communication or spending too much time together can kill the friendship; which could ruin any chance of having a successful business partnership.
If you decide to go into business with a partner remember to take the needed provisions and surround yourself with individuals who will help you be successful and grow.
Steve Jobs once said
My model for business is The Beatles. They were four guys who kept each other’s kind of negative tendencies in check. They balanced each other and the total was greater than the sum of the parts. That’s how I see business: great things in business are never done by one person, they’re done by a team of people.
Based in Delaware, Inc. Plan (USA) can help you to establish your business across all 50 US states and beyond. Our company has been serving the global business community since 1990, and has a track record of excellence in helping entrepreneurs form successful corporations.
