As an entrepreneur trying to get your business off the ground, you may wonder, “Do I need a business partner?” It may seem easier to build a business with someone by your side instead of going it alone. But this is a case where more doesn’t necessarily mean better. Remember that anyone you sign on as a partner will be entitled to half the equity of your business. Unless they contribute to the success of your endeavor equally, it may be prudent to reconsider before signing the paperwork. Ask yourself the following questions to decide if what you need is a partner, or just some hired help.

Skill – “Does this person possess skills that I lack?”

When establishing yourself as a business owner, you may discover that there are some skills you lack. Perhaps you are excellent at task management and organization, but you’re not great at interacting with clients. Or maybe you have a strong creative vision, but lack the skills to organize and implement a plan to move towards that vision. Those are instances where a business partner who does possess those skills could be incredibly useful. By selecting someone whose skills are a complement to yours, you strengthen your brand and ensure that nothing will impede your path to success.

In addition to evaluating the skills of a potential partner, ask yourself if those skills are something you will make use of for the duration of your partnership, or if you only have a temporary need to complete work in the process. If you look to bring on a partner simply to complete a task you have no skill in, what you may actually need is an employee, not a partner. Hire a lawyer, a full or part-time employee or a temporary freelancer to complete those tasks without losing any of your business equity to an unnecessary partnership.

Finances – “Does this person provide financial support?”

You may encounter financial road blocks while building your business, and as you consider a business partner, it is important to ask yourself if this person is able to contribute financially to the business. If they cannot contribute financially, that may be a reason for serious consideration before proceeding. Remember, you want to protect your business equity instead of dividing it between yourself and a partner who is not able to invest.

Another question to consider relating to your business finances is “Do you anticipate having enough revenue to support a partner?” Again, your assets will be divided, so it is important in your business plan, to evaluate whether your business can financially support two owners, or if it would be more financially sound to bring on support staff at an hourly rate or lower salary. The short term appeal of having a business partner to shoulder the financial burden may be canceled out by having to support that partner if you don’t generate revenue quickly enough.

Vision – “Does this person share my vision for the business?”

This is perhaps the most important thing to ask when considering a business partner. Does the person you have share your creative vision? Do they believe in your mission statement? Do they demonstrate the level of respect you have for the potential clients you’ll be serving? If your answer to any of those questions is no, then partnership is not for you – or at least, perhaps, you need to keep looking for the right partner. A difference of opinion in the vision for your company will result in disagreements and impede your process to move forward. Protect your vision and values, as you protect your equity, and allow nothing and no one to weaken them.

Perhaps as you read this you’ve realized that business partnership isn’t for you – and that’s okay. There are other ways to team up with another entrepreneur to work towards the goal for your business. Consider a joint venture or a gross revenue share. Or weigh the options and consider hiring a support staff to complete the tasks that don’t match your skill set.

If you do decide that partnership is right for your business, make sure that you test the partnership out first. Work together on smaller milestones to evaluate your ability to function as a team, talk openly about hypotheticals for your potential partnership and, if you’re satisfied with the results, proceed to the next step. As with anything in business, make sure that your every aspect of your partnership is covered in a legal written document to clearly establish both of your role in the business and protect yourselves in the event of a dispute.

You won’t regret taking this time to carefully consider the options for your business and a potential partnership. By protecting your vision and your equity, you are certain to establish your business in a way that guarantees your success.

Cristiano

Author Cristiano

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