Majority of businesses start-ups die at inception. This is mainly due to poor/wrong choices the owner(s) of these businesses make before starting up the business, or in cause of its running at beginning days. Whether to start up a business alone or to partner up is one of those choices a prospective business owner should make before starting up a business. Other choices of crucial importance include, but are not limited to:
- The modus operandi of the business
- The business location
- Products or service the business is to deliver
- The business model
- The business start-up size etc.
Making the right decision in every of these areas goes a long way in determining whether a business would succeed or not.
Depending on what you want and the nature of your business, you can choose between starting up a business alone or partnering up.
In this article, you would see why to start up a business alone or to partner up. You will also learn of the downsides to both choices.
WHY START-UP YOUR BUSINESS ALONE?
One of the benefits you derive from owing your own business and running it alone is that you can create your own rules. When you are the sole proprietor of a business, you can set your own working hours, set your own rules. Not only do you get to set your own rules you also get to run your business comfortably and at your own pace. This flexibility is particularly important, especially when you hope to create a balance between work and personal life. You get to create time for your personal needs and also for your family.
With the absence of business partners and the rules they set, which are important you abide by, you can put whatever matters to you first- if it is the business, fine!
- Following your vision
One attribute of business people is that they are dreamer. Having to run your business alone, you get to run with a blue print following the visions you had at the conception of the business idea. Every successful business owner would always exude joy when they find out the visions they have for a business materializes without being compromised. They would be greatly joyed when they see the business they envisioned unfold exactly as planned. While a business with partners may go on successfully, it wouldn’t be as you envisioned because the different partners might have a different view of how they feel the business should move.
- Less stressful decision-making
When decision-making power is autonomous, the business would go on faster and without distractions. Partnership businesses have this thing with rigorous decision making which takes time. Before a decision is made, the partners would have to hold meetings, vote, collaborate etc. These processes can be very stressful and may affect the productivity of the business. This is not the case with a business in which you are the sole decision maker. When you run your business alone you can make crucial decisions that would see to the growth of your business on time without waiting for other to come up with their opinions. This would go a long way in boosting your productivity.
DOWNSIDES TO STARTING YOUR BUSINESS ALONE
While starting your business alone may seem the best option to take, as it offers you freedom and autonomy, there are also downsides to it. The disadvantages of this kind of business include:
- You get to bear the financial risk alone; if there is loss you go through all the pain of encountering it alone.
- While starting your business alone is advantageous because of how flexible you can be, the flexibility can be disastrous because you might not give the business the much commitment it deserves due to lack of monitoring.
WHY START-UP YOUR BUSINESS WITH PARTNERS?
- Sharing of risks
A business, any business, at commencement and early years needs funding. Having partners means multiple sources of funding and a higher cash flow. Also, the risks involved if the business does not go as plan would be lessened. It wouldn’t just be you bearing the risks, but you along with your partners. When partnered up, you will feel relaxed knowing that if any losses results in the cause of running the business, you will be rest assured that the risks wouldn’t be yours to bear alone.
Businesses have different sections and areas of functionality. These functional areas in a business require particular set of skills to go on effectually. A single individual may not possess all the needed skills to perfectly run these functional areas. When a business is run by partners, there is room for diversification as the different partners would likely possess complementing skills that is needed to run the business. This would expand the business, her customer base, and profitability. Also, due to specialization there is also room for division of labor, hence, reducing the workload of one person.
- Sharing and checking of ideas
Sometimes, our ideas that feel so great may not be accepted by the world. Having partners allows for scrutiny of your ideas. Partners too can help in modifying your not-so-great ideas and transforming them into good ones. With a team in place, all your ideas can be tested, modified when needed and also refined. Also, when your business is partnered, there is room for group brainstorming which would birth innovative ideas. Ideas too can be provided by your team member to solve difficult problems.
DOWNSIDES TO STARTING YOUR BUSINESS WITH PARTNERS
Starting your business with a partner may also seem highly advantageous because of how you get to share the risks and all. One thing you have to take note of is that, not just the risks are shared but the profits too. This therefore implies that you’d most likely take half of what you’d ordinarily be getting starting alone – unless there is a scale-up.
Also, disagreements may arise in cause of decision making.
The choice of whether to start a business by yourself or starting with partners is a very crucial one. The very survival of the business is dependent on what decisions you make based on this. Different factors should be considered when making this decision. Some of the factors to be considered include:
- Your personality (can you work with people?)
- Your personal and business goals
- The nature of the business
- Available resources; etc.
Another feasible option in business structure is starting out alone and later partnering up. Irrespective of the option you make, make sure it was well thought out. Read more.