When starting a business, one of the major decisions an aspiring entrepreneur has to make is deciding whether to go solo or work with a partner. This is true, especially for those with like-minded friends who also have the capacity to spend cash for a startup.
Running a business alone or with a partner has its set of pros and cons. Going solo works well for some like introverted entrepreneurs while partnerships work better for those who are efficient team players.
Thinking of starting a sole proprietorship business? Or do you want to do great things with a person you trust? Let’s discuss the advantages and disadvantages of both below.
Pros of Having a Business Partner
1. You have help
Starting a business alone means doing everything yourself. But with a partner, you have the luxury of sharing tasks to get things done faster.
2. You have additional knowledge
Aside from having an extra hand for help, you also have an extra head to provide you with information and ideas you don’t possess or know.
3. You have less financial burden
Having a partner ensures that all the funding for running the venture won’t come out of your own pocket. This is a great way of avoiding racking up a huge debt in the first months of your startup.
Cons of Having a Business Partner
1. Profits are split
Because you share financial responsibilities with your partner, they’ll also receive a cut from future profits.
2. Bureaucracy leads to delays
You can’t make decisions on your own in a business partnership. Everything must be decided unanimously. And if the other party doesn’t want to budge. Nothing will happen.
3. Arguments can happen anytime
It doesn’t matter how well you know each other as business partners. Both of you will see and do things differently. This can lead to a lot of arguments which could affect your relationship.
Pros of Running a Business Alone
1. You get to follow your vision and plans exclusively
In a solo business, there’s nobody you should consult with before executing a plan. Everything happens the way and whenever you want them to be.
2. You work with greater efficiency
When you have no partner to think about and deal with, you’re calmer and more focused on getting things properly done.
3. You can easily adapt to the challenges
One good thing about running a business alone is that you’re forced to handle everything yourself. This teaches you to think on your feet and create various management strategies that adapt to every problem and situation in your personal and business life.
Cons of Running a Business Alone
1. Financial losses are all yours to shoulder
The problem with running a business alone is that you have nobody to share the blame with if things go south. That goes the same with monetary losses. Business startups are often financed through a loan and there’s nobody who’ll help you pay your debt.
2. You have little time for personal endeavors
As mentioned, running a business alone means doing everything yourself. While that may be a good thing because you get to follow your own vision, plans, and formula to drive your venture into success, you’ll also have less time for breaks, vacations, and even sleep.
3. You have no second opinions
We all need someone to provide us with a second opinion on every problem we face, especially if we’re unsure of what we’re about to do. This is the biggest trade-off to having a “zero conflict” entrepreneurship experience.
The best way to help you decide on what kind of business you’ll have is to reflect on your working preference. If you feel you perform better doing things alone, then pursue solopreneurship. Otherwise, find a partner to run your business with.
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