While thinking about including a partner in a business, one should also be well aware of the pros and cons of it. When two or more persons collectively think of starting a business, things might seem to go on the right track! It might look an easy trade to start with, but is it really so? There might be numerous impediments too of having a business partner. Read on to learn about the different pros and cons of having a partner in your business.
Planning for establishing a business partnership?
Before getting started with the pros and cons of a business partnership, one should be well aware of the literal meaning of business partnership or what actually business partnership means? Partner in your business means an individual or two and more, sharing the same interests and working on the same platform to gain and share profits and loss respectively. Business partners work on mutual understanding and interest of their business. The business partners have to rely on each other to leverage the business; understanding each other’s personal as well as professional needs, while understanding the principles and protocols of handling a business.
The Pros of having a partner in your business
1 Sharing hand – Partner in your business makes work easy to handle due to work sharing and another helping hand. The responsibility gets divided between the partners, which seems to have another pair of hands to catch the ball and claim for a catch out to your opponent. Partner also shares financial responsibility.
2 One is better than two – Once you choose your right partner in business you have the opportunity to deal with any circumstances with two or more minds, more perspectives, more views and more solutions to any problem.
3 Support – A partner in the business cushions you, you always have support at your back. Partnership assures you that someone is always with you to take care of your business just like you care for it.
The Cons of having a p artner in your business
1 Shared profit – Along with sharing of loss one has to share profit you earn too, this is the primary disadvantage of having a partner in your business. Being a single owner of your business may assure you as the only owner of profit. And sharing business with more than one partner forces you to share your dividends and profits with all the partners.
2 No sole decision making – It may be an easy in a sole proprietorship to make all the decisions on your own. But having a partner in your business, you can’t be the sole decision maker. Moreover all partners may not agree at the same point.
3 Growth may be affected - It may happen that you might have a much higher growth level in sole proprietorship. Growth rate in business with partner may affect in the long term.
Now you know the various pros and cons of having a partner in your business. So decide carefully and thoughtfully whatever is practical and good for you and your business and what suits you the best.