There are people who think that being an entrepreneur means doing it all by yourself, but that is simply not true. For an aspiring entrepreneur or one looking to expand their business, partnership may just be the way to go.
The major advantage is that partnering can help you pool resources. For instance, if an aspiring entrepreneur has capital and passion for a certain kind of business, and another has the know-how and experience/portfolio, a business partnership would be mutually beneficial. If one entrepreneur has excess office space from which he runs a business that isn’t really producing much, and another runs a highly productive complementary business but is staggering under the weight of rental costs, they’re might both be better off together in a partnership.
That said, business partnerships have their pitfalls. Many have ventured into it and found it to be the undoing of a relationship that was once superb. Marriages have been broken, family relationships strained, and friendships irretrievably lost just because of a business partnership that didn’t work out.
Also, for couples going into a business partnership, there is the risk of losing this basket into which they have placed all their eggs. A couple deriving all their income from a single source often jeopardizes family finances. As such, a couple must do their due diligence beforehand. There should also be a backup plan that allows one partner to find a job if things aren’t working out.
If you decide to go into a partnership, make sure there’s a business plan for the enterprise, and that each partner’s job description is well outlined. If either partner is leaving a lucrative job to go into the partnership, it should be understood that there are sacrifices to be made and frugality will be the new order of the day.
You also need to consider the expense of another salary if your potential partner isn’t bringing capital to the table. What strategies are in place to ensure the business is profitable enough to provide enough income for both partners?
Being an entrepreneur goes beyond sole ownership or the “Founder/CEO” title. Producing results is what matters, and if you need to partner to achieve this, then examine the pros and cons and make that decision.