Business partner or solo?

1tothe2 · 09-06-09

Hello guys and gals,

If one were to start there own business would you suggest a business partner or solo?

AFashionableLife · 09-06-09

Hi 1tothe2,
That would always depend on your situation, the business type etc.
There are normally only 3 reasons for taking apartner in my opinion.
1. For financial reasons, split the start up / buy costs etc.
2. If you do not have the skills required for the business for e.g it is a car mechanical workshop and you are not a mechanic but your partner is.
3. Because you want to. Some people start business's with friends family etc just to share the workload.
In my thinking, i would never take a partner unless I had to.
you lose some of the creative and administrative control.
You share the profits...

You are not the sole decision maker.
And finally you will never ever have a falling out with yourself, but a partner....?

These are just my thoughts.

The Start Up Sage · 30-06-09

Have to agree with a fashionable life's comments about partners.

Having said that, one option is to form your own business (you as sole director and sole shareholder) then, if and when you are ready to bring the partner on, you can structure the 'sale' of shares to this partner.

This frees you up to get on with building a business, keeping your options open to bring on a partner when and if it suits you.

In this way, you keep control of your own destiny and are not held hostage to your potential partner's timeline.

The Business Start Up Sage
Business Switch
business-switch.com.au

FinSpec · 13-08-09

I've seen people fall out with themselves... not pretty!

But I have to say, good advice above

Jonicode · 15-09-09

Of course there are certain advantages and disadvantages to both. But for me having a partner has certain assets that's undeniably strong. For instance, a partner will keep you on your toes. Like when you want to buy that $2k scanner, he or she should and will question why. Moreover, if you start to slack off, he or she will be there to remind you of business priorities. No one can do everything, and two complementary skill sets create an asset that cannot be reproduced when flying solo.

leaves123 · 26-09-09

If direct partner or not, working at a business with numerous people is something that I have found very rewarding. The most important reason for this would be that one can draw on each others experiences and ideas, their motivations and different ways of approaching things.

In any case, one should always draw on the knowledge and experience of others, in order to avoid making mistakes that someone else has made and could have warned you against.