Is entering a business partnership with a friend or acquaintance a good idea or is better to fly solo? There is no right or wrong to this question because the success or failure of a partnership depends on the partners themselves. Although people claim that it’s foolish to get into business with a friend or a relative; there are plenty of success stories which prove otherwise. A business partnership should be a well thought out decision and never an emotional one. Here are a few pros and cons of such an alliance:
– Any start-up related costs or other misc expenses that arise are shared.
– Responsibilities are usually divided and each partner looks after specific aspects of the business.
– Any business risk is shared. Partners often motivate each other and are a good support system when things go wrong.
– Business decisions are not made based on one person’s outlook or view. Both partners get to make mutual decisions after airing individual thoughts and opinions. It has been found that such decisions are much more effective when implemented as well.
– Both partners bring a different set of skills, knowledge and work experience to the partnership. This is very helpful when running a business together.
– Any fear or risk of running the business alone is eliminated. Having a partner you can trust helps in better exchange of ideas and may give the business itself a better chance to succeed.
– Problems begin to occur in a partnership when there is a clear conflict of opinions between the partners. Or when one partner adamantly sticks to his opinion without trying to understand the other person’s point of view.
– Both partners may have different personal aims or goals which could clash with business interests. When one partner feels that he is doing all the hard work, whereas the other is simply enjoying the fruits of labour; it’s a sign that the partnership already has cracks.
– Having a partner means that you need to consult and discuss before taking any decision. This lack of freedom or reduced space to do what one wants may become a reason for quarrels later.
– If the partners are unable to come to a decision regarding an issue, it could create tension in the partnership. If reaching a joint decision is that hard, approaching a third party for help may be the best alternative.
– The role each partner plays in the business needs to be chalked out clearly or that alone will give rise to ego clashes.
– Many partners have different ambitions for their business. If the business vision is not the same, it can lead to a conflict of interests, which could lead to a future split.
Whether entering a business partnership is right or wrong, depends on you and your business partner. But remember that any successful partnership requires dedication, hard work, common aims, a willingness to listen and an open mind.