Starting a business can be equal parts exhilarating and terrifying. With so many moving parts to any business, it can be daunting to take every aspect on by yourself.
Conversely, the excitement and thrill of engaging in the entrepreneurial spirit can sometimes be enough to overshadow any fears regarding starting up a new business.
However, there is an option in which you can share the workload as well as the uplifting aspects of beginning a business venture. Business partners can help to make a business more successful than ever imagined, and they can make the process of getting things up and running much easier.
Taking on a business partner can absolutely do wonders for your business, as long as you make sure you’re choosing the right partner.
What Taking on a Business Partner Means
A business partnership is a lot like a personal partnership in a few ways. In both situations, you are both pooling money towards a common purpose, sharing resources and individual skills in order to achieve goals, as well as sharing in the often uncertain and tumultuous world of profits and losses.
It is up to both partners to work their hardest to ensure that a business, like a relationship, lasts for years and results in a happy outcome for both parties involved.
Building a business or expanding a franchise with a business partner requires a mutual understanding of both parties regarding what exactly everyone is getting into.
Both people’s roles in the business needs to be clearly defined so that undue burden isn’t placed on either party. It is also essential that, before entering business together, potential partners discuss how to share profits, resolve disputes, and in the worst case, what to do if one partner wants to dissolve the partnership.
Choosing a business partner is a huge commitment, so be sure to do your due diligence to ensure it is the right choice for you and your business.
While you share the pressure of starting up a business when you take on a business partner, you still need to consider all the responsibilities that are required of both of you. As business owners, you’ll have to jointly manage employees, file your own taxes, and closely monitor the economy for any information that might benefit or harm your business.
Taking on a business partner means that if you had a plan set for the future, you may have to change it in order to suit the needs of both you and your newfound business partner.
Benefits of a Business Partnership
Going into business with another individual has a whole host of benefits, both for you as an individual and for the business itself as well.
If you’ve chosen the right business partner, they will help you first of all through the balancing of responsibilities of the business. Business partners also help by bringing a different, unique set of skills to the equation that might be able to take on the problems that you’re unable to.
Different types of businesses offer different benefits and protections to business owners. Among these are sole proprietorships, limited liability companies, corporations, s corporations, and several varieties of business partnerships offering different benefits.
There are general partnerships, limited partnerships, and joint ventures, and while they all operate slightly differently, they are all relatively inexpensive and simple, and all have the benefit of sharing financial burdens between multiple people.
Business partners can offer up a greater depth of expertise and may be able to assist in effectively completing tasks that you may prefer to hand off or are out of your knowledge or skill level. They can provide a different, fresh perspective on business decisions and may be able to help you make important decisions regarding the direction and actions of the business itself.
Additionally, business partners provide a support system to you, relieving a good deal of the stress associated with operating a business by sharing the responsibilities and workload, as well as sharing in the businesses successes and failings equally.
What to Look for in a Business Partner
The act of choosing a business partner can be quite difficult, as you have to take the time to weigh all of an individual’s strengths and weaknesses before making the huge decision to enter into a business partnership with them. While not all business owners require an advanced degree to operate a successful business, taking on a business partner that has one can be a good decision, particularly if you don’t.
Those who have pursued their education further than a bachelor’s degree have better networking opportunities, and the prestige and esteem associated with holding a master’s degree can open many doors that may have previously been shut to you.
Choosing the right business partner can ultimately come down to whether or not you like the individual. Of course, you should also look to whether or not you hold shared values, especially in regards to business, and have complementary skill sets. Study up on the multiple intelligences theory.
It speaks to the idea that people have multiple learning styles and therefore multiple means of acquiring skills. Look for a business partner whose intelligences may not match your own but complement your skill sets.
You should also place just as much value in how well you get along with the individual in day-to-day interactions. After all, though someone may look perfect as a business partner on paper, the likelihood of a business flourishing under your shared guidance is slim at best if you can’t stand to be around them for long periods of time or flat-out don’t enjoy their company.
The right business partner will display a lot of the same skills as other entrepreneurs, like an inherent creative spirit, the ability to comfortably communicate to large groups, and the ability to identify business opportunities.
You and your business partner should be able to trust and respect one another implicitly, as you will both have the other’s well-being in your hands in some measure. Look for a business partner who is able to fully and effectively communicate with you, is able to easil
y mend relations after arguments of any size, and supports your weaknesses while enhancing your strengths.
Choosing the right business partner is a huge decision that could make or break your business. It is important to know that you’re making the right decision before you commit to a business partnership.
Don’t be afraid to test out a partner before you make the commitment, as you’ll be sharing a lot with them in the coming years.