Pros and Cons of Having a Business Partner

Do you want to start your own business but feel hesitant that you have the right skill and resources? Many young aspiring businessmen are embracing the thought of business partnership. Others though feel reluctant with the idea as it’s hard to trust someone with your business.

If you’re caught between the idea of getting a business partner or not, read this article to know the pros and cons of business partnership.

Here are some pros:

Different experience and skills

You’re two individuals with different experiences in life and skills. This is advantageous in your business because you get to complement each other’s weaknesses by enforcing your own strengths. Because of your difference in expertise and background, you get to bring fresh and different ideas on the table.

Say you’re not good in strategic planning yet efficient in customer service. Your partner can think of marketing strategies while you’re the one implementing them and provide efficient customer service. Having two different minds with unique creativity and skills are way better than one.

Diverse opinions

Just like you have different set of skills and experiences, you and your partner are also packed with different opinion. Though this could sometimes be the cause of clash and misunderstanding, it can lead to better decision making when you come to terms with your differences. Imagine when you and your partner is collaborating on decision making and creation of idea.

Both of you may not have the same opinion on how to run your business. You may be traditional while he prefers the advanced method. While you want to do everything manually while he wants technology to take over, it’s when you meet half way and compromise that seals the deal. Consider automating some of your processes. For example, look into sales order software – this type of software will give you more time to work on sales rather than wasting time entering orders. Use of automation is  a perfect alternative.

How many wonderful ideas will both of you come up with?

How many mistakes will you avoid?

 When both of you have different understanding and approach of a situation or crisis, you’ll be able to find better resolution since you get to cover lots of different angles. Brainstorming will always be a productive process since you have different thoughts and ideas to bring to the table.

There’s strength in numbers

“No man is an island.” Though this popular saying is particularly true in the social aspect, it is also applicable when it comes to business. Two – three armies are way better than one. How so?

First, you get to face and conquer trials better if you’re with a partner. It’s easier to come up with ideas and resources to solve the problem when you’re together than being on your own. You get to open more horizons when you have a partner. Your market will be wider since he has social connections of his own that adds value to your business.

Having a support system

Running a business is no joke and not for the faint-hearted. Along the way, you will get to face lots of adversities and challenges. Before you get to the happy ending of success, you will have to go through lots of humps and bumps.

Having a business partner does not only mean having an extra head and hand, but it also means having an extra shoulder that you can lean on in times of difficulties. You and your partner can be each other’s cheerer and supporter when times are rough. You can help motivate and encourage each other when the other party feels like giving up.

Here are some cons:

• You are limited when it comes to decision making. Before you make any decisions, you have to wait and consult with your partner first. This can sometimes be a problem especially if you want things to be done quickly.
• Profits are shared. It’s going to be a challenge on how you divide the profit since both of you may not have contributed the same effort and time towards your business.
• Since you’re two individuals with different opinions, disagreements can occur. If tension is not settled, this could mean withdrawal of the other party which can turn your business upside down. Traumatic split ups can leave a heavy shadow on you and you may be afraid to try partnership in the future again. It’s worse if you are friends with your partner. You did not only lose a business partner but you have also lost a friend.
• A partnership may end if the other party withdraws or passes away.
• The major drawback of business partnership is unlimited liability. You may not share the same level of partnership but you may carry the same burden and responsibility. Say for example, you only own 5% of the total partnership. In an unfortunate situation that your business fails, your only supposed to pay 5% of the debt. The bad news is, this does not stay true at all times. If your partner can’t pay his portion of debt, you will be forced to pay all of the debts.

Do What Works

Jumping into the business partnership boat is a risk. If things don’t work out – you can end things on good terms and move on with your life. With trust to your partner, cooperation and hard work, you will reach the peak of success together.