The pros and cons of partnerships
Like a marriage, your choice of business partner will affect your success and happiness.
Partnerships have helped establish successful businesses and start great friendships. They can just as easily go the other way, with ruined businesses and relationships.
With their potential to do so much good and so much harm, partnership decisions must be made with great care.
Before entering into a partnership, or dismissing a partnership opportunity out of hand, take a look at the full impact of having a partner. Every situation is different. When you look at the pros and cons, your conclusion may surprise you.
Partnership decisions are very individual. Some people make great partners and others don't. And a great partner for one person may not be for another. To make partnership decisions, you need to know yourself well.
Here are a few questions to ponder – and it’s important to be honest with yourself:
Resentment, often the result of values and ethics that are not shared, can destroy a partnership. When choosing a partner, consider these questions to reduce your risk of resentment:
It's easier to form a partnership than to dissolve one that isn't going well. That's why it's important to clarify, in writing, the terms of your partnership. Get your lawyer and accountant involved in the agreement, and ensure that these points are covered:
Partnerships can expand your potential for success or drive your firm into the ground, so set it up with care and tend to it well.