Many new and experienced entrepreneurs think that going it alone is the best way forward. There are certainly benefits to that. You know exactly what you want, you have total creative and financial control and of course, the lion’s share of the profits.
For passionate entrepreneurs, your business is your baby and it’s totally understandable why you’re hesitant to let anyone else get too close to it.
However, there are plenty of reasons why opening up your business to a partner is a beneficial move. It might even be a better option than going it alone.
Two heads are better than one
As the old saying goes, having two lots of brainpower means new ideas, new angles and problem-solving approaches. When one person feels stuck in a rut, the business partner can provide support.
If you’re one of those people who have sudden flashes of bold, new ideas, then having a partner to bounce these ideas off is a plus. If your business partner is good, they’ll be honest with you.
Boost overall productivity
Following on from the above point, you can get more done at the top if there are two of you. Joining forces with someone else allows you to do all the things you wanted to do but simply didn’t have the time to.
Get extra funding
Bringing a business partner on board can also mean potentially new investment. This could be a good move for businesses already established that are experiencing slow growth and stagnation. It’s also good for those who are struggling to launch their start-up due to lack of funding.
Someone who gets it
Emotional support is not to be underestimated. You may think you can do it all, but sometimes it’s good to have someone there who just gets it.
Confiding in a business partner who knows what it’s like at the top, with all the responsibilities that go along with it, can be a great help. You can share your worries and sources of stress and work on them together.
While we’d recommend considering a business partner, it’d be wrong of us to say that it’s all a bed of roses.
It’s a big decision to make, with potential downsides to consider. In the interest of balance, we’ve included two issues entrepreneurs should be aware of.
Appointing another shareholder of course means you’ll have to share some of those nice profits with someone else. However, if there is a boost in productivity or investment then profits could rise and swallow any potential losses.
Difference in opinion
While two heads can be better than one, it’s not ideal if they’re butting together all the time. You may want to go one way, but your partner hates the idea and wants to take a different approach.
You can end up in a stalemate, while all that extra productivity you expected passes you by. In this case, compromises may be made but it can certainly lead to some discomfort and awkwardness.
To avoid this, you need to choose the right person for the job. There will always be a bit of friction at times with any business partner. The most important thing is that you can both work through it in a professional way that limits delays and losses to productivity.
Are you considering setting up with a business partner? Have you ever been in a partnership before? Please share your thoughts below.