Starting a business with a partner can be very beneficial for a number of reasons, one being that you can share the responsibility of running a business with somebody else as well as all the work towards building the business up. There is also the added bonus of the start up costs being split, being able to support each other and each having separate ideas to bring to the table. All of these points could lead to greater financial results and prospects that may not have been possible had you set up a business on your own.
Before going into a business partnership it is probably wise to determine beforehand whether you are the type of person that would fair well in a partnership. Will you enjoy the decision making, responsibilities and profits being shared? And would you be comfortable not having total control over your business? Differences of opinion could lead to disagreements which could ultimately end in the business failing, so you have to make sure that you can accept the fact that everything from simple decisions to the profit of the business will be shared.
Another critical thing to consider is who you are going into a partnership with. The person you decide to go into business with must have similar ambitions and motivation as yourself as well as a similar work ethic otherwise things will more than likely not work out in the long run. You need to be able to communicate well with one another as well as trust them completely. As good as it may sound going into partnership with a friend or relative, you have to remember that there is a difference between getting along socially and running a business together. If things were to turn sour it could make other aspects of your life outside of business difficult.
If you believe that a business partnership is the right way forward and have taken all the above points into consideration, then it is very beneficial to make sure all duties, responsibilities and shares of each partner are detailed in a legal agreement to avoid any difficulties in the future. It is also worth involving somebody like an accountant from the beginning to help form your partnership, and to have somebody outside the business you can both go to for impartial advice.
If you would like any further information or advice on business partnerships and whether they are the right choice for you then please do not hesitate to phone or email us, or alternatively, you can simply use the live chat link available.
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About The Author
MAAT and ICPA accountant, with a passion for making accountancy and bookkeeping accessible. Other interests include cloud-based software development for web and mobile access, keeping fit, reading, and entrepreneurship.