Teaming up with a partner (or multiple partners) to start or expand your business can make taking that leap a little less daunting.
However, establishing and navigating relationships with other people can be tricky, especially in a business context. Whether you’re considering a general partnership or incorporating a business with a partner, you’ll need to carefully consider whether that partnership-based structure is the right fit for your business.
Consider the Pros and Cons
Before you sign on any dotted lines, be sure to carefully consider the advantages and disadvantages of business partnerships:
Advantages
- Brain capital: Two (or three or four) heads are better than one.
- Share the workload: You don’t have to wear all the hats in the business. You can even take a vacation and leave your partner minding the business. You have backup. You don’t have to be in two places at one time. You’ll both have better work/life balance.
- Strength in numbers: In the B2B market you will be taken more seriously if you are a team of two or three versus a sole proprietor. Clients will perceive that your business has more resources behind it, because it does.
- Access to financing: With more people to back a business loan, you may find that you can more easily access financing for your business.
- Support and connection: You have someone else to share the success with.
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