The Pros and Cons of Business Partnerships

Being the master of your own destiny and your own empire seems like a wonderful concept. You have a business idea and you want to make it work but there may be times when you cannot do it alone. Should you look to get into bed with a business partner or is remaining a sole trader going to be more beneficial in the long run?

Going into partnership with someone requires a long thought process. Going into business with a friend requires an even longer thought process! If it doesn’t work out, you could end up losing your business and your friend. So think carefully before you consider letting someone else in on your business idea.
Of course, there are many pros to having a partner in business. In an ideal world, you can share the workload and the profits. In an ideal world, the partner will have ideas that you had not thought of and vice versa. Your business could grow more quickly with the help of another person. You can share the risks as well as the costs and benefits. You can complement one another’s skills and be there for one another to offer morale and support when times are tough.

But what if it goes wrong? Well, you don’t have total control over the business for a start. If you are the type of person who likes to control every situation, then you will need to learn to share and share alike. You will need to work as a team and think like a team with a common goal.

What if you fall out with one another? There are bound to be times when you don’t see eye to eye and you will need to be able to resolve these disputes amicably, with the best interests of the business in mind. Are you the kind of person who can do this? Maybe you need to sit down and work out whether you really are the type of person who wants to go it alone or who likes the idea of a partnership.

There will be times when one or more people in the partnership don’t appear to be pulling their weight as much as the others. This can lead to friction. People are different; people work in different ways and there is always a chance that you might end up frustrated at someone else’s lack of motivation or cooperation. Again, you need to be prepared for this and it’s a good idea to set out ‘roles’ for each partner up front so that you are all clear on where you stand and what your responsibilities are.

Do a check on your prospective partner(s) because they may not be who you think they are. If your business partner runs off, you are liable for his or her debts as well as your own. You need to make sure that you trust this person completely. Make sure you have spoken to past employers and colleagues about them and find out as much as you can about them.

Get legal help from the outset. Make sure you have a lawyer and an accountant involved and that everything is done above board and not by word of mouth and on trust.

Whatever you decide, go with your instincts but make sure that you have done your homework.

Copyright © Peter Moore 2009 - Co-Founder - EzWeb123.com