If you are a sole proprietor, there may come a time when you begin to wonder if it is a good idea to take on a business partner.
Getting a business partner can bring many changes, and you have to be prepared to adapt to a whole new way of running your business. It is important to make sure that your new business partner will contribute positively to the growth and success of your company.
So, when is the right time to bring on a small business partner?
You are unable to solely manage business growth
Â While a growing business can bring more profits, it also requires you to invest more time and effort.
If you are running your business all by yourself, you probably have to oversee every aspect of your business and do all the decision-making yourself. Even if you are a very capable business person, there may come a point when you will not be able to cope with the growth.
Taking on a business partner is a good way to manage growth, because it enables you to share your management responsibilities with someone who truly wants your business to succeed.
A partner who has extensive knowledge and experience in certain aspects of management can be an invaluable addition to your business. He or she can also help ease your decision-making burden and contribute new business ideas.
You need to team up with another business to compete with the big players
If your ambition is to become one of the major players in your industry, joining forces with another company can help you reach your goal.
Partnering with another company can be beneficial in many ways. It enables you to obtain additional expertise and knowledge of your industry, increase specialization, access valuable assets and funds for new development, reduce costs and expand your market share. With a greater market share, you will have a more significant influence on market trends.
Your business is on the verge of closing
Getting a business partner does not only help you manage and stimulate growth; it can also be an effective defensive business strategy. If your business is in serious trouble, it may be better to form a partnership with a strong company than to close it down.
A business partner can provide the necessary expertise and resources to get your business back on its feet. However, one disadvantage of entering into this kind of partnership is that you will have less control over your business.
If you want to gain back full control of your business later on, you can make an agreement with your partner to end the partnership on a certain date.
Taking on a partner can be a great business move if you do it at the right time.
To ensure that the partnership will be harmonious and successful, it is essential that you select an individual or company that has the same vision and values as you.
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About the Author: John McMalcolm is a freelance writer who writes on a wide range of business topics, from small business management to biographies of famous entrepreneurs such as Richard Branson, Mark Cuban and Steve Wynn.