Thinking about becoming an entrepreneur? Maybe you have an idea for a great product that will solve a big problem. Or, perhaps you’re already an expert in your field, but you’re ready to go out on your own and provide services that people will rave about.
Starting a business requires you answer some important questions. One of the questions you will need to ask yourself is whether you should go into business alone or with a partner? Here are some things to consider when making this decision.
Should You Go Into Business Alone?
The solopreneur business model operates as a single-person business. Although solopreneurship is an easy and fast way to start a business, there are many pros and cons to choosing this path. Some of these things can be related to your work style, the resources you have, and the type of business you intend on starting.
- Work style: If can prefer working alone through most of your work week, then starting a business alone may be one of the better options
- Business Type: You may envision running a freelance business, such as consulting or providing web development services. What you have in mind can easily be done without a business partner.
- Colleagues: Not having teammates wouldn’t bother you. You can perform your work without colleagues.
- Money Matters: You don’t want to be obligated to answer to or consult with investors. You’d rather make all the financial decisions on your own.
- Creativity: You’re creative when it comes to your business. You don’t want to hand over creative control to anyone else.
- Vision: You have a vision and purpose for your work. You’re excited about making things happen.
- Self-Confidence: You believe in yourself to see things through, even in difficult times.
These are just a few signs that you could be successful on your own, without a business partner. If the complete opposite of the above statements applies to you, you might need the help of a business partner to be successful.
And, while all or some of the above statements might be true for you, there are times when adding a business partner might add value to your business.
Benefits of Starting a Business Alone
Easy and Quick to Start
Starting a business with your friends or any other person can sometimes be very difficult. You have to sit down and discuss various issues before making any move. This is not the case when you run the business as an individual. When you are starting a business alone, you make all of the executive decisions about the startup and how it will operate.
Because you won’t have to worry about things like getting board approval about the structure of the business, you can launch a business much faster. You could literally have a business idea and be in business within a few days.
Control
You would also have full control of the business decisions once it has been launched. This means you will control the marketing decisions, financial decisions, and operating decisions. All of these decisions will be your responsibility. The downside to this is that you do not have a dedicated person within the business that you can consult if you are unsure of a decision.
Lost Cost
Many solo businesses are low-cost startups. If you choose the right type of business, you may be able to begin the venture for $100 or less. However, there are other businesses that can be operated alone but require more startup capital. An ecommerce business, for example, may be easy to start but may need more funding in order to build a functioning website, purchase inventory, and for marketing.
Benefits of Starting a Business with a Partner
Financial Resources
One of the benefits of starting a business with a partner is the addition of financial resources. You may need additional cash for marketing, supplies, equipment, and operating costs. While you could use your personal capital to help fund these costs, having a business partner can help by splitting the cost of some of these expenses.
Some business partners are willing to invest without being involved in the day-to-day operations. Take, for example, someone who would love to be a restaurant owner, yet they have no food industry experience.
Additional Expertise
A business partner can also offer the expertise that you do not currently have. Let’s say you’re opening a hair salon because you are an experienced hairdresser. If a nail tech wanted to be your business partner, your salon could offer nail services, too. Their clients might decide to start getting their hair done at your salon. These would be clients that you would not have gained otherwise. Teaming up to offer several services under one roof can be a win for everyone.
A Sounding Board
Being an entrepreneur can be tough. It takes a lot of faith to know that your business will be successful, even in tough times. Having a business partner can give you a peer who understands the unique difficulties of your work. They can back you up if you need to make tough choices, like raising prices, firing an employee, or streamlining your product options during a recession.
Giving You Time Off
If you’re like lots of entrepreneurs, you’re passionate about your job. You don’t want to leave your business in the wrong hands. But, life happens, family emergencies happen, and sometimes you just need a break. Having a trusted business partner can give you the regular rest that everyone needs to prevent burnout, fatigue, and exhaustion.
Before you choose a friend as a business partner, consider the potential fallout. What if your partnership isn’t successful? To learn more, check out our resource How to End a Business Partnership With a Friend.
Conclusion
If you decided to start a business alone there are several things to consider. An entrepreneur faces many decisions, especially in the early days of starting their business. One of the biggest decisions is whether or not to go into business alone or with a partner. Considering the benefits of bringing a partner on – and the benefits of working alone – can help you make the best decision for you and your business.
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