Partners or No Partners when it comes to opening a new business?
Is it better to do it alone?
When starting a new business, many will think that being in partnership will make the exercise easier. After all,it is so much better have a like-minded individual to share the problems at the beginning and enjoy the successes as the business progresses.
Yes, there are many reasons to go into partnerships and there are many not to. Let’s examine some of them:
- “It is lonely on the top”, as the old saying goes. Running a business alone often leaves one in a situation that she or he cannot share the issues with anyone else. An outsider may not be able to relate to the inside workings of a business and employees have very different motivations from those of owners. So having a partner can be a great advantage. Bouncing off ideas, discussing issues, giving each other support, etc.
- Two people can have very different opinions about the same issues they are faced with. Sometimes those difference of opinions can lead to arguments and even confrontations. That can be rather destructive in a business and can affect the operations negatively. When you have more than two partners, issues magnify even more and the business can come to a point where nothing gets done.
- The partners have different skill sets. Now you are talking. Like sales and operations. Two individuals complementing each other’s skills. If they both stick to their own field of expertise, things should work out rather well. However if they start to get involved in the other’s department, soon problems will arise.
- Best friends becoming business partners. The worst idea of all. In all cases that I have seen this led to the breakup of the friendship and major problems in the business. Why, one would ask. After all, if you trust your friend, all should work out fine. The fundamental problem here is that you got to know your best friend through your private life. Your motivations and your behaviour will be very different once you are running a business. The new persons that you and your friends become may not gel very well at all.
- Starting a new venture with a business associate. This could be the best combination. Here you are talking about an individual that you got to know through business and not personally. Your behaviours will be very similar once you have started the business. Especially if you have complementary skill sets, as discussed above, this type of partnership can be the best for the future.
- Doing it alone. For many there is no alternative. You can avoid the arguments and disagreements and just do it. Yes, it might be lonely on the top, but once the business becomes profitable you will not have to share those profits with your partner.
By running a business, like operating a trading floor with Day Trade The World™, most of the issues that you would need to discuss with your partner will be presented to you as tried and true. You can also rely for help with our Trade Support department and you can share.
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