Having a Business Partner vs Going Solo
Published – 08/01/2019 6:36 pm
A decision whether to do business alone or with partners can be tough.
And there is no right answer what is better. Each model has advantages and downsides, many of those have to do with the human factor.
#Business with a partner requires a certain level of maturity of each founder. But also it is better to formally agree on business aspects such as authorities, responsibilities, and obligations. In fact, many conflicts between partners arise because people did not bother to make an agreement at the very beginning. This can be included in the Articles of Association or additional provisions. You may limit Directors, appoint external Directors depending on the size of your business. You may agree on the founders’ rights when appointing the Board of Directors. If you decide to involve a venture investor, find out what they want from your business and write that down too. Also, write down the rules for exiting business just in case.
Obviously, if you decide to do business alone, you won’t have anybody to conflict with. The success of the company depends on you only. The latter can be good and bad. Although you don’t have to agree with anybody, it might be hard to do everything by yourself and you are the only source of ideas. Plus, you will have to invest your own money and it might be harder to handle the costs alone.
On contrary, having a #partner means more people to generate ideas, additional hands for various activities, and another source of money.
With all said, when making the decision whether to do business alone or with a partner, consider the level of responsibility you are willing and ready to take. And do the legal work carefully to avoid problems in the future.
That’s all for today.