The business partnership looks like a good idea for both parties in the beginning. In most cases, people don’t realize difficulties they are going to experience.
9 Reasons Why It’s Better to Start a Business Without Partner
People consider a business partnership to be a positive and simple thing to do. They share investments and income accordingly. Along with this, they share responsibility and duties. Is some person have more actives to invest, and other more knowledge in a field, this sounds like a perfect combination. Sounds fair? Here are a few reasons why people have to avoid working together and build a company alone.
1. Sharing equity
Starting a business needs financial support. Sometimes it is enough to have around $1000; sometimes you need to have a bank credit or loan from other corporations or people. The thing is, you have to invest equally in your startup. If you can’t do it, don’t start a partnership. If you need a business partner just for his share, don’t do it. It will become a reason for most misunderstandings you will have. Money should be divided equally, this is the only possible way to run business with someone else. Otherwise, lean the sum you need and run it alone.
2. The dream
Most attempts to run a small business fail in three months from the start. One of the most important reasons for this is choosing the wrong brunch. If the only goal of your business is to make money, you are going to fail. You have to be passionate about it. When it comes to partnership, it is almost impossible to find the one whose dream is the same. Even if you are lucky enough to have this person, you will always have difficulties and disagreements about it.
3. “But I thought that…”
There is nothing to talk about if you don’t have a partnership agreement. No matter how small your startup is, you have to create a document, which will include every single situation that can happen and prescribe its resolution. Both parties should approve and sign the agreement. If you need professional assistance in creating a document of concurrence, you can pay for essay online. Without it, misunderstandings are going to emerge eventually.
4. Consider hiring instead of partner
Partnership business is much more complicated than the vast majority of people thinks. Instead of supporting each other and sharing the difficulties, you might create problems and block the process. Think about employees. Instead of dividing income, you will need to pay salary, instead of discussing tasks and duties you will be a boss and the one who always make a decision. One or two essential employees may solve all the problems you consider sharing with a partner.
5. Making important decisions
If this is your dream, you won’t be able to make a decision alone. Every time you have to contact a person you work together with. After some time it may feel as if you are asking for permission. As a founder, you’ll get tired of asking for the reasonable argumentation. You have to make it yourself every time. It is much easier to make important decisions alone. No need for exhausting discussions, in approvals of both parties, only you and your company. Long lasting discussions may become a massive anchor for your entrepreneurship.
6. Money always matters
In partnership, you have to share all the income. There is a lot to think about. You will earn twice as much as together with the other person. Alone you don’t have to share. What if you think your companion doesn’t invest as many efforts as you do? What does he decide that you don’t earn what you got? This situation will appear, it is only the matter of time.
7. Consult and learn instead of relying on
People mostly don’t want to have their business alone because of fear of failure, lack of knowledge, and unwillingness to take responsibility. In fact, partnership won’t relieve you from responsibility but add more of them to a stable and constant relationship. It is more hard work than it can seem. Instead of concentrating on your fears, invest time in learning, consulting and be responsible for all the decisions you make.
8. Human factor
Human behavior is complicated and still can be unpredictable. People can offend, be too emotional, be not able to divide personal relationships and work, and there is more. It seems to be easy to share responsibilities with someone you’ve been familiar with for ages, but you will never predict his or her behavior at work, especially in entrepreneurship. There can exist two different personalities that you will no longer recognize which means can’t predict. Formal relationships must always have a hierarchy.
9. Termination of the partnership
When one partner or an investor, has the right to force the founder to leave the company, this is where you have to be careful. Think twice if you need a business partner who can fire you. These cases can result in nasty corporate divorce losses. If you want to avoid it, then avoid other people doing your business.