Reprints Online

Having a business partner can provide the boost needed to make your business a success.  On the other hand, there is also the danger it could turn out to be the worst decision you ever made.

There is much to be considered before you take the big step of entering into a partnership, and a little time spent evaluating the pros and cons of the situation now can save you a lot of possible heartache in the months and years to come.

Before you start to think about the other half of the partnership, you should first ask yourself if you are well suited for this situation.  Imagine your business ten years in the future a successful and thriving firm which has made headlines near and far owing to its professionalism and competence when dealing with customers.  Do you see yourself standing alone as the proud boss who achieved it all yourself despite the difficulties?  Or is there someone standing next to you, taking fifty per cent of the credit and the profit?

This may seem a silly way of analysing your own suitability, but if you felt the slightest twinge of envy, jealousy or doubt at the mention of a business partner in this example, the chances are you would feel those same emotions if you took on a partner for real.  Remember, a little role playing now is better than a real life disappointment later.

If on the other hand, the premise of sharing your ideas and ambitions with a partner appeals to you, then it is wise to be aware of the extent of the fifty fifty situation.

On a basic scale, any start up costs which are involved can be shared between the two of you, as can the resulting workload you incur.  Furthermore, if the business operates at a loss to begin with, this can more easily be shouldered by a partnership than if you are working alone.

On a more personal level, good communication between partners can lead to a better performance in all aspects of running a business.  The ability to identify and solve any problems which arise is a prerequisite to success, and one which can be formidable if the combined efforts of the partners are greater than their individual talents.

However, though the grass may seem greener when you have a partner to share the mowing with, you need to be aware of where the weeds are.  Lets consider the worst case scenario.  If your business fails and you find yourself facing huge bills, those debts would theoretically be split between the two of you.  So a £4000 debt would require a £2000 payment from each person.  But if one partner doesnt pay the required amount no matter what the reason may be the creditors may look to the other partner to settle the debt.

On a smaller scale, but of no less importance, is the question of back up when it is most needed.  One advantage of a partnership is being able to take a holiday, safe in the knowledge that the business wont grind to a halt while youre away.  But if a partner disappears without informing the other or for no good reason, then the partnership is placed in jeopardy.

So you can see a business partnership has much in common with any other relationship between two people.  Honesty and trust are essential if the partnership is to succeed.  You simply cant afford to spend time wondering if your partner is being completely honest about their expenses or their whereabouts on a specific date.  And the same applies in reverse too.

For this reason, it is wise to consider going into business with someone you already know and trust.  Husband and wife teams are not unusual, though they can place a lot of pressure on the relationship and the very real risk of alienation cannot be ignored.  All partners need some time apart, and this can easily be lost when you are working as well as living together.

A close friend can often be a more viable choice but again, you both need to be sure it will not jeopardise your friendship.  The rosy picture you imagine of shared riches and success may drive you on to begin with, but suppose the business does not do as well as you had hoped?  Is the price of losing a friendship worth the risk of going into business together?

All the best partnerships are more valuable than their individual parts, but those parts need to be compatible if the relationship is to succeed.