A lot of people start a business assuming they will need a business partner. Some plan on getting them before they start, others somewhere down the line.
The right business partner can be a real boost, but too many partnerships fail for you to assume it will be a good thing. Here are some reasons that you might decide you don’t need one.
1. You will sacrifice too much autonomy
Part of the appeal of owning your own business is setting your own rules and not having to answer to anyone. While that is never entirely true, as you always have to answer to clients, the IRS and other authorities, you will have a lot of freedom when making decisions. Taking on a business partner cuts that freedom as you will now be responsible to them, and they to you.
2. You can get what they can bring in another way
Many people bring a partner on board because they have convinced themselves this person has something they need, without realizing they could get that thing elsewhere. Needing finance does not mean you need to make someone a partner to get it – you could get a loan or crowdfund. Needing marketing skills does not mean you need to make a skilled marketeer your partner – you could use a freelancer. Even if you are convinced you need a particular person, there might be another way to have them help you, rather than making them a partner, such as paying them a fixed fee or a commission.
3. You may have to work harder
Bringing on a partner means extra outgoings and having to split profits. If having them onboard does not at least double the business’s income, then the business will become less profitable to you.
When adding (or even considering adding) a partner to your business, it’s always wisest to seek legal guidance.