Website design By BotEap.comPartnering with another entrepreneur means sharing ownership, responsibility, and trust. Should you find a partner? Is it better to partner with a friend? For some people, it is a “no” because they are afraid of losing their friendship because of money. For others, it is a “why not do business together?” This seems to keep the friendship one step ahead of the game. They may feel more comfortable working with someone they already know and trust.

Website design By BotEap.comIt is difficult to say whether partnering is a good option depending on the business industry, financial situation, and many factors. Let’s ask some critical questions:

Website design By BotEap.com1. Is the business your idea or someone else’s? Do you have any business knowledge in this line of work or passion? Do they have the same goals as you?

Website design By BotEap.com2. What type of business do you have or want to create? Is this a product or service business? What responsibilities or licenses should both partners obtain? Who is responsible for obtaining the necessary documentation or licenses?

Website design By BotEap.com3. Do you need to partner with someone to run this business because you can’t afford to hire people or for financial reasons?

Website design By BotEap.com4. What association will you agree to be? 50/50? 60/40 or 70/30, etc.

Website design By BotEap.com5. The entrepreneur must understand that business is a long-term commitment. It is a long journey from start to harvest. What is the exit plan for a partner if necessary and how to reach an agreement?

Website design By BotEap.com6. Do you have the ability to manage this business?

Website design By BotEap.comThese are some vital questions entrepreneurs should ask themselves before creating a partnership.

Website design By BotEap.comI have spoken with many entrepreneurs and did some research. Here are some advantages and disadvantages of the partnership:

Website design By BotEap.com• Property:

Website design By BotEap.comAdvantages: Pride of ownership, freedom from the control of others, the time invested will show higher performance, flexibility to make decisions.

Website design By BotEap.comCons: You never know when you can put 40 or 80 hours in business this week. Having to compete with other companies. There is no guarantee of success.

Website design By BotEap.comIf it is associated only for capital, an entrepreneur may think twice. Partnership mistakes are costly because a partner may not have business experience or may not be willing to invest the same amount of time.

Website design By BotEap.com• Control:

Website design By BotEap.comWhen it comes to partnering, many people immediately think 50/50, so everyone can have equal control. You should avoid this because “there are too many cooks in the kitchen.” There needs to be a person who can make the final decision. Research shows that it is better to form a 60/40 or 70/30 partnership. Every business needs a person who has overall control and responsibility. In this way, employees will not be confused by knowing who is the boss.

Website design By BotEap.com• Personality:

Website design By BotEap.comPros: Different and more diverse characters can benefit in various tasks like finance, people, product, marketing management, etc.

Website design By BotEap.comCons: Facing the same problems, but two people can react in different ways.

Website design By BotEap.com• Vision of the partners:

Website design By BotEap.comAdvantages: It is best if you have a partner who has the same vision, passion and goal as yours.

Website design By BotEap.comCons: partners often see the same product going in two different directions.

Website design By BotEap.com• A mix of generations:

Website design By BotEap.comSenior partner: Lifelong experiences, knowledge, and more flexible work hours, but not a lot of energy and you may be considering retirement soon.

Website design By BotEap.comYounger partner: They are knowledgeable about new technologies and are full of energy. Eager to work, but lack of real-world work experiences or some specific skills needed. Less flexible work hours or no full commitment to work.

Website design By BotEap.comThink long and hard before inviting a partner to your dream!