Starting a business is an exciting endeavor. You are watching your dream become a reality.
As it grows, you will take on more responsibility and make more decisions. Running your business can quickly become overwhelming. Should you consider bringing on a partner?
The pros and cons of a partner
Bringing the right person into your business can be a game-changer, but it’s a decision that requires careful consideration and deliberation. Here are some signs that you may need reinforcements:
- You’re overwhelmed by trying to juggle everything. There are only so many hours in a day, and having an overly large workload can quickly lead to burnout and poor decision-making. Having a business partner to share the responsibilities can make daily operations more manageable.
- You are lacking specific skills. Some people are creative thinkers, while others excel in finance. The right partner can fill that skills gap.
- You need more funds to grow your business.
There are several benefits of having a business partner. Here’s why it might be the right decision:
- You can share the workload
- Diverse skillsets
- More connections
- A partner may push you to stay motivated
While there are advantages to having a business partner, there are also some challenges, such as:
- You and your partner may have differing visions
- You will likely disagree at times
- You will have to share your profits
- Your partner may not have the same work ethic
If you determine that a partnership is what your business needs, the next step is to find the right person. You should start by outlining the qualities, skills and experience you’re looking for. When evaluating potential candidates, consider your existing contacts. You can also attend networking events where you’ll meet people who share your interests.
If you find someone with potential, start by collaborating on small projects to see how well you work together. It will give you a better sense of how they communicate, their work ethic and if they’re reliable.
Once you decide to move ahead and formalize the partnership, you must have a written partnership agreement. It should outline roles, responsibilities, profit sharing, dispute resolution and steps if one of you decides to end the partnership. Working with a legal professional ensures that everything is covered and the document is legally sound.