When an entrepreneur has a great idea , it is common for them to start asking themselves: “ What is the best way to open my business ? Should I do it alone or with a partner?
The doubt arises, on the part of the future entrepreneur, mainly due to the concern of not being able to handle all the work alone. For this reason, you should take into consideration points such as:
- Financial: Do you have enough money to pay your bills, even if the situation is not the best?
- Responsibility: Are you able to take care of all the work yourself, even if the number of tasks takes up a good part of your day, including weekdays?
After considering the above situations, the entrepreneur may consider the idea of hiring someone to share the responsibility and risks of the new venture.
However, with a quick search on the internet (and even among family members) it is possible to find cases in which close friends or relatives had their relationships broken after a disagreement between partners.
So, what is the best path to follow? Check out our article below and draw your own conclusions!
Should I go it alone?
If you decide to venture into the business alone, you will have some benefits, such as: the part of the profits that would initially go to a partner will be yours. Another point that may be interesting for you is the peace of mind of not having to listen to partners questioning your own decisions. Otherwise, in order to move forward with an idea, both partners need to be in agreement to put it into practice.
On the other hand, working without the help of a partner has its downsides too. For example, although you don’t have to listen to what your colleagues have to say, you will need to be more present for new ideas, resulting in more working hours.
In addition to the point mentioned above, another difficulty that entrepreneurs have, especially when they are alone, is the difficulty in raising capital to put their ideas into practice.
Or should I find a partner?
If you choose to seek a business partner, the entrepreneur will have some benefits, especially if the partner has different skills than yours.
Having a partner in your business gives you the chance to find flaws that a single person would not normally notice. This is due to the exchange of experiences that both parties have had in their respective lives, whether professional or personal. The moments of overcoming that one has had can serve as inspiration for the other and vice versa. The exchange of experiences allows both parties to be better prepared for the paths that lie ahead.
Regarding the financial aspect, a partnership can be a great choice, especially when one of the parties does not have a large amount of money to invest. By sharing the costs, choosing a partnership becomes less risky.
Looking at the other side, you should choose very carefully the person you associate with. Stay away especially from those who do not admit to listening to opposing opinions.
Disagreements can arise mainly when there is a lack of clarity when closing the agreement. Failure to do so gives the partner the opportunity to decide something that you do not agree with. Even with a good conversation, if the person is insistent, they may continue with their thinking, if it is not specified in the document.
For example, imagine that you dream of starting your own business and decide to ask an acquaintance to be your partner. Since you are very committed and trust the person completely, you believe that both of you can make progress in the business. However, at a certain point, your partner decides to split his share with two other partners, making a total of four business partners.
You do not agree, as you believe that a larger number of people could cause even more conflict of ideas, but as it was not clear whether or not it was possible to divide the parties in the contract, your partner takes the liberty of taking action, causing a huge headache for you.
Which option should I choose?
As we saw in the previous items, both have positive and negative sides, and it is up to you to analyze which is the best alternative. If you have enough knowledge on the subject, but do not have the working capital to pay the bills of the enterprise, seeking an investment partner may be the best alternative.
If you are thinking about looking for a partner, the entrepreneur needs to choose a person with whom he or she has a good relationship, but above all, someone who is committed and has the same desire to prosper as you.
For a partnership to be good and lasting, both parties must treat the agreement as a marriage. In other words, you must choose the person you want to partner with very carefully, remembering that the results, both positive and negative, must be shared between the couple.
What precautions should I take with each choice?
If you start a business as a couple, you both need to define, in advance, each person’s responsibilities, as well as the rules that must be respected by both parties, in a clear and objective manner.
Transparent language is necessary to avoid possible ambiguity, in order to reduce the risk of an even bigger problem in the future.
With a business partner by your side, it is natural that at some point you will have conflicting ideas. The problem should be presented as an opportunity to bring about an improvement for the company. To be successful, the team needs to reach a common agreement.
The decision of whether or not to hire someone to set up a business is not an easy one. On the one hand, the person will need to dedicate their full time to complete all the tasks, running the risk of encountering more problems. If they manage to prosper, they will have an even greater profit.
On the other hand, the entrepreneur will have fewer risks and will be able to count on the help of the partner to solve problems (if he is qualified, of course), however, it is natural that at some point you will deal with internal conflicts, in addition to the profit being reduced.
In conclusion, after defining the main positive and negative points of each decision, it is up to you to choose the best way to set up a business.