I meet prospective entrepreneurs all of
time - through my church, at my health club, and even at my neighborhood block party.One of
most common topics they want to discuss is whether they should look for a partner to help them start and run their business.
I know that it can be quite frightening to imagine quitting your job, investing part of your savings, and handling fifteen different tasks -- all by yourself!
But is a partnership
right way for you to start your business?
> The Ups and Downs of A Partnership
There are good reasons to enter into a partnership in business, and some that can lead to disaster.
- Good Reasons
* Partnering with someone who can provide business-specific skills, contacts and relationships you feel your business needs, but which you do not personally possess.
E.G. A person who comes to your business with a highly useful Rolodex because of 20-years of selling experience in your intended industry.
* Partnering with someone who can help administer key areas of activity to permit you to focus more effectively on your area of greatest strength.
E.G. An individual who is good with numbers, while you love to work with people in
sales process.
* Someone who is truly committed to sharing
highs and lows of
business and who will stand by you come thick or thin.
- Bad Reasons
* You need more money than you either can raise yourself, or feel comfortable putting up all by yourself.
You don't need a legal partner if all you need is money. It is preferrable to take out a home equity loan or find a private investor.
* You don't want to do all
work yourself.
If you feel you need additional labor, consider using an outside contractor, office temporary, a part-time high school kid or a relative. Do not give up ownership in your business just for another strong back.
* You are social friends and you think it would be fun to run a business with them.
A partnership gone bad can end a long-standing friendship very quickly. This can particularly be true of partnering with a relative.
> Till Death Do Us Part
Some people say I am being overly dramatic when I compare a potential business partnership to a marriage. But
similarities are closer than you might think.