Anyone who has ever started a business knows how much work there is to it. Going from an idea in your head to an actual business structure that profits take a lot of work and determination. For one person, it’s overwhelming at times.
So the idea of a business partner is extremely appealing. Someone, to share all the work with? Sounds great! Plus, business partners can be there for each other on the emotional side of things. It’s just plain nice to have someone in the wild world of small business with you.
Let’s talk about the pros and cons of a business partner, and if it’s something you should consider for your own business.
There are many, many pros to having a business partner. We’ve listed them out to make them easier to digest.
-Double your work output
-Someone to bounce ideas off of
-Share the emotional journey together
-Find someone who has different skills, and covers more ground
-Potentially more start-up capital, as you can both bring funds
But of course, not everything is sunshine and roses with a business partner. Here are a few reasons you might not want one.
-Split the profits in half
–Much higher potential for arguments
-Should have much stricter legal contracts and documents for business structure
-Possibility of things not working out and ruining a relationship with them
Do You Need a Business Partner?
This is what it boils down to; do you need a partner? We think that they can be an incredible boost, especially to businesses that are self-funded.
If you’re starting a business to fix a large-scale societal problem, or to fill a hole in the market, a business partner is a great idea. For these businesses, they tend to be less personal, require more work, and a business partner or business cofounder can have your best interest and be a crucial asset.
If you’re starting a business because you want to turn a passion into something that makes money, you might not need a partner. Businesses like these tend to be smaller, stem from a personal interest, and come with workloads that can be carried by one person.
Before you start any business, it’s crucial to write a business plan. This helps you understand what you’re trying to do as a business, where your revenue will come from, and how you want to move forward. Once you’ve done the business plan, it should become clear if a business partner is something you’ll benefit from at all.