One of the biggest questions many entrepreneurs face when starting a new business is whether they should go it alone or have a partner to help.
There are positives and negatives to both situations. A partner can be beneficial in some cases, as they can help reduce many of the obstacles that come with managing a business. However, there are other times when going solo is the best route to take.
So, how do you decide whether to go with a solo venture or a partnership for your new business?
Can You Do It All?
The first obvious question is whether you can handle all aspects of the business on your own. Going solo might be a good option if you are well-rounded enough and have the time to tackle every angle.
If there are roadblocks in place, then bringing on a partner might be a good idea. These roadblocks could be family commitments or another source of income-you need at this time. Or, it could be that you lack the skills or knowledge to handle certain aspects.
Can Someone Else’s Strengths Offset Your Weaknesses?
Everyone has strengths and weaknesses. The question to ask is: Will your shortcomings hold you back as you start your new endeavor? If so, you may want to search for a partner who has a complementary skill set to yours.
A partner with a solid financial and organizational background could focus on the back-end operations while you spend your time on sales, marketing, and innovation, for example.
Do You Need Checks and Balances?
Do you work well by yourself or perform best when someone else provides objective criticism, feedback, and a different way of looking at things? There’s nothing wrong with needing these checks and balances.
Some people thrive when they work by themselves. They are self-driven, self-motivated, and also can step back from a situation and objectively assess what’s going right and what’s not. Others need another voice to chime in, especially when unexpected problems arise or when there’s a fork in the road.
To some people, simply having a partner to bounce things off of can help. To others, that extra voice is detrimental to progress.
Do You Need Funding?
One of the most common reasons that new businesses fail is they aren’t adequately funded. Their owners don’t have enough cash on hand to withstand ebbs in sales or unexpected outcomes.
Scott Crockett says it’s vital that entrepreneurs know starting a business will always make more money than you think. If you have ample cash to invest, then it’s great to go it alone. If not, a partnership may be more viable.
Can You Sacrifice Ownership?
The most significant benefit to a solo endeavor is you don’t have to share your business’ financial success with anyone. What you earn is yours and yours alone. When you have a partner, you’ll be sacrificing at least a portion of these proceeds.
Sometimes, the sacrifice is well worth it. You could earn more with a partner than without — even considering a financial split. Other times, your company’s gains through a partnership aren’t enough to justify giving up ownership.
About Scott Crockett
Scott Crockett is the founder and CEO of Everest Business Funding. He is a seasoned professional with 20 years of experience in the finance industry. Mr. Crockett’s track record includes raising more than $250 million in capital and creating thousands of jobs. Scott has founded, built, and managed several finance companies in the consumer and commercial finance sectors.