Before investing time and money in a business, you already did a market analysis, to determine whether your business will have a fighting chance of surviving longer than the five-year benchmark. After all, every entrepreneur knows that the majority of new ventures close their doors within the first five years. You have considered all of the possible contingencies, but you have one major question to answer, before you embark upon the adventure of business ownership. Do you fly solo, or do you take on a partner?
You have to very carefully weigh the pros and cons of creating a partnership, as opposed to doing everything yourself. On the negative side, if you have a partner, you will have to learn how to negotiate and compromise. You, nor your partner, will be able to make a major decision, without the other's approval. You would definitely have to brush up on your people skills.
However, it would be good to have someone to discuss decisions before they have to be made. After all, you and your partner are in this together. You both want the venture to succeed. Therefore, you know that you are both going to be deciding what is in the best interests of the business.
Yet, while you are still thinking about the advantages of having an extra brain to decide the important aspects of the business, you still have a nagging concern. What if you do all the work, and yet you still have to share the profits equally? The partnership would not be fair, unless both of you are equally dedicated to giving the business 150%. Absolving a partnership can be difficult and costly, putting the future of your venture on the line.
Now, you are really confused! You like the idea of having someone alongside who is equally enthused about establishing a profitable business and willing to work hard-for free-until mutual goals have been realized. Realistically, in the beginning, it would be cost effective to hire one less employee. But, you might also risk the problem of stepping on each other's toes. How do you decide?
Unfortunately, you are the only one who can decide if you prefer sole proprietorship or would welcome the input and help from a partner. Both choices have distinct advantages and disadvantages. In order to make a final decision, you will have to determine whether your ultimate goals can be best served venturing solo or with a like-minded partner.
Paul Sutherland is an Accelerated Business Growth Coach. His company - Daniel Thomas International - www.dti.eu.com helps SMEs to grow their businesses with tried tested and proven techniques and strategies, increasing their bottom line profits in 90 days or less?
