After people make the decision to start a small business, they often wonder if they should start the business by themselves or with a partner. There are positives and negatives to each choice. This is a big decision, as it can have a lasting impact on your business.
Who can be your partner?
It is common for friends to come up with business ideas when they are sitting around talking. Most of the time, these ideas go nowhere. However, if two or more people come up with a business idea and decide to go into business together, it is critical that all of the people involved share the same goal. When friends start business together, it is common for some of the friends to have the true drive for the business to succeed, while the other people are just tagging along for the ride. This could lead to problems and infighting down the road if people are perceived to not be pulling their weight.
Before starting a small business with two or more people, have each person clearly define what their job responsibilities will be. Have each person state what they can bring to the table. It will also be important for each person to indicate how many hours they can put into the business per week. It is generally not a good idea to start a business with a person who has young children at home. This is because the demands of raising small children may often interfere with the time they devote to your new business.
Being the boss
The main advantage of starting a small business by yourself is that you are the total boss of everything that happens with the business. There is to compromising with your fellow associates. You can shape the business exactly how you desire with no interference from anyone. This may be the ideal choice for those individuals that do not possess good social skills.
It is no secret that most small businesses fail. Not having enough money to effectively develop and promote a business is one of the main reasons why many small businesses fail. Therefore, starting a business with a partnership allows the people to pool their resources. While this may require people to relinquish more power than they would like, a small business can never have enough capital. For this reason, people do not have a great deal of capital or who were not able to secure a small business loan should consider a partnership. All businesses should make workplace health and safety a top priority.
More than one boss
A partnership is nice because each person can contribute his or her money to the business. However, if two or more people invest the same amount into the business, they may want an equal amount of power. This creates a situation where more than one person is calling the shots. While unconventional, this method can work, provided that the people are on the same page as to the direction of the business.