Here’s 11 reasons why you should find a partner when opening a business:
REASON # 1: Less Risk
I’m sure you’ve already heard about all of the risks involved when starting your own Business.
With that in mind, why not split the risks?
Being able to divide up some of the risks, is a luxury that sole proprietors do not have.
As long as you have a like minded Partner, you will still feel just as independent as you would if you were on your own. In other words, you will still be your own boss.
REASON # 2: More Money and Time Left for you
Since your partner will most likely have to contribute some of their Money and time towards the business, your plate won’t be as full.
REASON # 3: Credit
Depending on your credit history, you may or may not be able to qualify for a business loan. However, depending on your partners credit history, you will have a better chance of being approved. Infact, your potential business partner’s credit, may be the primary reason for partnering with that particular person.
Lending institutions almost always want a personal guarantee (co-signer) when applying for a business loan, therefore your partners credit should be a major factor when choosing partners.
Lastly, the more personal guarantees you can offer the bank, the more they will be willing to loan the business.
When you’re just starting out, the more credit you have access to, the better.
REASON # 4: Two Mouths are Better than One
Spreading the word about your new business can be a daunting task at times, so it’s nice when you have help.
P.R. and Marketing are an important part of business and nobody is going to promote your business as much as a vested partner.
REASON # 5: Contacts
Networking, prospecting, generating leads and referrals are all necessary when it comes to business.
If you open a business on your own, you are limited to only the contacts that you have already gathered in the past. However, your partner will be able to open up your options tremendously, depending on their back ground.
For example, if your potential partner went to a prestigious college, he/she has access to a huge alumni which can be extremely useful.
Another example would be if he/she was in charge of a large organization. The more people they are connected to the greater chance you have of succeeding.
REASON # 6: New Skill Set
Your partner may have a skill that you do not have yourself. While you dont want to be 100% reliant on their skill set, it would be nice to have if it can help the business.
REASON # 7: New Licenses
This is a similar concept to the previous one mentioned. If your partner has a license that you don’t already have, you may have the potential to make more money.
For example, If you are a CPA with your own Accounting Firm and you decide to partner up with someone who is a licensed insurance agent, guess what?
MO MONEY, MO MONEY, MO MONEY!
REASON # 8: An Extra Pair of Hands
As basic as this sounds, who wouldn’t want a little help? Team effort will always get the job done faster and more efficiently.
REASON # 9: More Ideas
After a while, new ideas may be hard to come by. Being able to brain storm with your partner on a regular basis will most likely lead to new fresh ideas, that will be very beneficial for the business.
Napoleon Hill once said, “When two minds come together a third mind is created.”
REASON # 10: Character
Some people have more to bring to the table then just money and skills. Some people possess certain key charactertics such as: charisma, enthusiasm, a positive attitude, discipline, image, popularity, and so on. Depending on the type of business you are in, some of these charactertics may make a huge difference.
For example, if you want to open a beauty product business, you may want to partner with a Model or a Beauty Pageant winner. Since hiring a Model may not be an option for you at the moment, cutting one into the business could might be necessary.
REASON # 11: Less likely to quit
Opening and running a business is hardwork. Why sugar coat it? Business ownership is no joke. There will be many ups and downs, struggles and triumphs. More importantly, there will be several times you may want to quit. Having a partner may give you the extra edge you need so you wont quit. Hanging in there for the sake of not letting him/her down.
In closing, people who avoid partnerships, are normally people who wish to keep all of the profits and ownership to themselves. While this is understandable, it’s important to take all that has been mentioned in this post into consideration.
Since the odds are not in your favor, why make it harder for yourself to succeed?
REMEMBER, It’s always better to own a small piece of a profitable business, than to own an entire business that is not profitable.
Written by Ivan Maldonado
Author of Head Start 2 Riches
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