Common Partnership Myths Debunked
Whether you are considering taking on a business partner as you start your company or after you have been in business for a while, there are some myths that you should research before making a commitment. Sometimes it is easier to bring someone on as an employee instead of a partner and other times, it is essential that you choose the right person to partner with to succeed.
Partners Should Complement Each Other’s Strengths
There are three main aspects of business, sales, operations and finance, but expecting yourself or your partner to be strong in all three areas can mean that you never open your doors. This leads many owners to consider bringing on a partner who complements their strengths and weaknesses. For instance, if you excel in operations and finance, you might be tempted to bring on a partner who is strong in sales. This can lead to a rift in the partnership, however as each of you focuses more on your own core strengths than how they should work together.
Partners Work Harder Than Employees
One of the most persistent myths is that a business partner will automatically work harder than an employee, but the truth is much more complicated than that. Ownership in a business comes with responsibilities that an employee just does not have such as financial risks and legal liabilities. This can weigh someone down with the ins and outs of business and lead to a decrease in logged hours, a change in how the partner approaches their job and much more. If you value the work that an employee is currently putting in, it can be more beneficial to both of you to offer profit sharing options over partnerships.
You Are Not Partners With the Spouse
When you take on a partner, you expect to be working with him or her and not the spouse, but the truth is that conversations between spouses will affect your company. You can find of this in your own life. Maybe your sibling thinks that you should offer more colors for products and says to expand the lines. Maybe your spouse thinks your restaurant wait times are too long and prompts you to hire more staff. The same things are likely to happen with your partner’s relationships which can put strain on how the company is run and your bottom line.
Taking on a business partner is a big commitment and you want to be sure that a partnership is best for your company before you start looking for candidates. You also want to consider potential partners based on solid business facts instead of popular myths to ensure you choose the right one for your operation.