A problem shared is a problem halved, or is it? When we consider setting up a business, we have to think about the skills that we have, as well as the ones that we don’t have. A business partner can be the yin to our yang. And while this helps when growing your business, what happens further down the line? Is it beneficial to start a company with a business partner or not?
Splitting The Duties
In a legal sense, it helps to do everything 50/50. As you might be deciding whether to progress as a partnership to a Limited Liability Company, or any of the other permutations, when going through the legal components, this is when you have to draw up a specific set of duties for both of you. The little things that you don’t deem important right now can be blown out of all proportion further down the line. What if you want to go it alone? As such, you would have to buy your partner out. When you start out, and you feel that you need a partner so they can fill in the gaps in your knowledge, everything has to be split down the middle. Otherwise, arguments ensue, and it gets messy.
If you decide to form a business with another person, you have to come to terms with the fact that conflicts could be a constant. You might have different ideas about how the business progresses. With this in mind, you have to learn the art of compromise, and understanding that you both need to have a shared vision. Having different skills is all well and good, but if you decide that the business needs to go a certain way and you are hell-bent on it, this could stop the business dead in its tracks. It’s also crucial for you to have an open mind because things will change. The big mistake many entrepreneurs have when they have limited experience is that they don’t tend to deviate from their vision. Things will change, and there can be unexpected events. When you work with a partner, conflict will arise even if you are on the same page. You can minimize it, but you can also prepare for it.
Who Would You Form A Business With?
Again, this comes back to conflict. When you form a business with someone you need to be on the same page but have different skills. This means that it’s going to be a learning experience. As well as this, you need to figure out if you are two different people that can still work together. Forming a business with a friend happens because we already have that shorthand. But it’s about avoiding the emotional conflict of interest. Having a relationship to build upon means that things can get personal. Forming a business with someone is about the act of business. As they say, “it’s not personal, just business.” So where will the line be drawn?
Is it beneficial to start a business with a partner? In one respect, sharing the duties works wonders. But you also have to think that there could be double the stress. When you operate as a sole trader, you have complete control. A business partner means you are surrendering 50% of this control.