Often, a lot of entrepreneurs are confused on whether to involve partners in their small business or not. Well, there is no right or wrong time to involve partners for your small venture, but there are certain things to keep in mind.
While Starting a Business:
Once you start your business you must try to exercise your total control over it. As initial stages are more complex then the subsequent stages of the business, it requires more careful planning and just to avoid any ambiguity in the decisions or difference of opinions, you must try to do this on your own and avoid any sort of partnership as much as you can. In case if you need a helping hand in execution, you may hire an expert or a consultant.
When Actually Things Change:
The need of partners will only arise, if your resources or skills gets restricted after a certain point and you will require outside help either to sustain or to grow your small business. These partners will provide you with money or technical skills; however they will come at a cost of sacrificing decision making powers and profit sharing. Again at this stage if you do not want to sacrifice the decision making powers, you may think of continuing with consultants.
To be precise, having a business partner vs not having one is the game of right choices only and you make choices based on options you have. While running out of finances you may consider sharing powers, on the other hand when you are running out of time and you want to keep complete ownership as well you may opt for outsourcing!
Well, having a partner doesn’t always mean it’s a 50-50 business, so you can have a limited partnership too. All you need to focus is to specify and document all the terms and conditions before you enter into any partnership. It’s the best measure to avoid any confusions or disputes at a later stage. Due consideration should be given to the selection of partners too.