Adding employee positions may seem to be the most obvious choice when thinking whether to bring a partner for your business. For sole proprietors who don’t want to dilute ownership, this can be a good move. But, adding business partners gives something that hiring employees doesn’t, which is the dedication and motivation that comes from having stakes in the business.
Typically, employees have the freedom to leave their job for one another anytime. Giving partners a share of your business may result in an uptick in dedication and motivation. They have also an interest in persevering through the challenges as well as helping business be more profitable and stronger.
Since partnership basically means sharing ownership, it isn’t a decision that you should take lightly. There are times that it makes sense to stick with ownership and the power to make decisions by yourself. You may go solo if you can.
The best partner can be incredible to the business success. Yet the reality is, there are lots of amazing employees out there. If you concentrate more on the process of your business, get the right ones to execute the process and you’ll be in good shape. However, partners can be essential when returning a business to growth and stability if you’re careful regarding the agreement’s structure.
Think of the dilution of your ownership as you take on partnership. Consider having a partnership agreement in place where all your roles are clear. See to it that you do your due diligence when it comes to the person, the amount of business you’re giving away as part of partnership and long term goals of every partner.
It is really a big decision for the reason the entrepreneurs must consider their co-founder relationship as they would consider a lifetime partner. There are many reasons why you should share ownership and take on partners and these include the following:
- Having a detailed and solid partner agreement.
- Reducing the risks of turnover through adding partners rather than hiring employees.
- Sharing opportunities and challenges with others who could help business grow beyond what you can accomplish by yourself.
- Reducing burdens on your energy and time.
Bringing one or more partners can be breath of fresh air. Rather than relying on your creativity, skill sets, and perspective, you will create a team of equals whose combined ideas and skills improve the business. Having a partner could mean an A-player at all positions. Aside from that, once you concentrate on a much narrower domain, you will discover nuances you never knew existed. Creating this nuanced understand of domain is what provides you a financial and competitive edge. Through concentrating on the core area, you will accelerate your growth and will be able to differentiate yourself from the competitors.
Time to Consider Partnership
Changing business from sole proprietorship to some kind of partnership is not for everybody. However, if both partners have the same vision, it can be stabilizing for one another. With this, it’ll result in higher profitability and huge success in the long run.