You are a new entrepreneur. You have a great idea for small businesses, a very good business plan and you are ready to start to execute. The only thing you miss, in your opinion, is a business partner. But are you sure you need one? There are some advantages and disadvantages to bring business partners, many you might have considered. In the end, the choice is yours and must be based on what is best for your business plan. Business partners can be blessings and interference, and sometimes even curses are truly for you and your growing business. You have to decide very carefully whether you really need a partner.
The great news is that business partners are not the requirement to start a business. However, your business plan may be very complex so you might feel you need someone to help carry out the workload. Also, when it comes to new business ideas such as startup, having more than one person who sees plans and ideas can help understand whether they are worthy or too outrageous. Having business partners is the best way to filter your ideas through other people before deciding to continue.
Sometimes the best thing you can do for your business idea is to start a partnership with someone who has certain skills and talents that you don’t have. Having access to other skills that you might not have can be extraordinary to startup because you don’t need to hire some people to fill up what you lack. You may be lucky and choose business partners that equip you in all the ways needed.
You must know that one of the biggest advantages to partnering with someone is the fact that the partnership does not pay income tax. You still have to file a tax refund, but you will not pay taxes on income, which is good news. However, don’t make this decision only based on this fact. There are also some losses to have business partners.
Disagreement will definitely occur when more than one person makes a decision, and the partnership is no exception. But perfectly you work with your partner, in the end you will find that you don’t approve every detail. It’s normal, of course, but you can also find that you don’t agree with important decisions. This type of disagreement can be avoided by just deciding not to partner with others.
Your business can also suffer if your partner makes a bad business decision without telling you. This is especially a problem in terms of financial decisions. Your partner can run with all the money and his idea, leave you without anything. The fact is that placing your trust to others can be scary, especially when it comes to your ideas and money.