As your business grows and you feel like you’re ready to take the next step, you may ask yourself if adding a business partner is the right course of action.
How to Decide if a Business Partner is the Right Step
While there are a handful of benefits to partnering with another savvy business person, there are also some things to consider before deciding if it’s the right move for your business. From shared responsibilities to new liabilities, the main keys to adding a business partner is to work with someone you trust and make sure you’re both on the same page.
Pro: Complementary Skills
This is where the old adage, “two heads are better than one” comes in. As cliche as it is, it’s true; it’s often helpful to get another person’s input and opinions, especially when making important decisions. As a business owner, you find yourself making decisions and brainstorming daily and, even with employees, you can start to feel overwhelmed with responsibilities and decision making.
Adding a business partner into the mix can help you distribute your to-do list by splitting up responsibilities. When looking for a new partnership, it’s key to find someone whose skills are complementary to your own. A partnership can work much better when you balance each other out and each have different yet equally important strengths.
Con: Less Control
On that same note, sharing ownership and responsibilities with another partner means giving up a portion of control. As a sole business owner, you can make decisions how and whenever you want, but when someone else is involved the decision making isn’t solely in your hands.
There will be a good chance you and your partner won’t always agree but adding a business partner means there will be some compromise. If you choose to have a partner, keep in mind that both parties need to be on the same page for it to work.
Pro: New Opportunities
With a new partner comes new relationships, connections, and opportunities. Partnering with someone means you’re gaining exposure to all of their business contacts, experience, and knowledge. When you’re a solo entrepreneur, you work hard to network and connect with a community of resources and support.
The entrepreneurial person you join forces with likely worked just as hard to build a network and will bring that to your business along with them. You’re basically doubling the amount of opportunities available to your business. A win for both parties involved!
A major factor to consider when adding a business partner is the liability aspect. Joint partners are tied to each other’s business liabilities and responsibilities. When sharing your business with another, you’re essentially becoming one owner responsible for one bank account.
Before striking up a new partnership, be sure that you’re working with someone you fully trust. Take all the necessary precautions if it’s someone you already have a relationship with (personal or business) and especially if it’s a brand new relationship that’s been formed because of this partnership opportunity.
Digital Marketing for Women Entrepreneurs
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