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Solo vs. Partnership

Solo vs Partnership

One of the questions that will come up to your mind when you’re planning to start a business is whether you’ll go solo or with partner/s. If you’ve come up with a business idea with someone, chances r you start the business with that person as your business partner but if the idea is yours alone, you don’t imagine running the business with someone else. You might like the idea of having full control of your business having a partner might be beneficial for your business as you have someone who can provide more ideas on running the business. Deciding whether to start a business solo or with a partner will depend on a lot of factors. I outlined some advantages and disadvantages of running a business solo and with partner/s.

 

Solo

Pros

  • You’ll have the simplest organization structure that will be easier to manage
  • All business decisions are yours so you will not have anyone to be in conflict with
  • You receive all the profits
  • It gives you an opportunity to learn more as you will face every business challenge alone
  • Going solo gives you a freedom to run your business the way you want to
  • Credit of your success goes to you alone

Cons

  • You are liable to all business debts
  • If your business goes down, you’re the one to take responsibility for it
  • You may not know everything about business but you have to do it
  • You need to work double and spend late nights at work. This means no vacation for you
  • No one will support your idea and no one will give you suggestions and second opinions
  • Capital might be limited since you are the only source for it

Partnership

Pros

  • They say two heads are better than one and it is true almost all the time
  • Partners will provide more capital letting you start your business sooner and you could support all business needs
  • Shared responsibilities and liabilities
  • There will be people to discuss ideas with and they can use their connections for the success of your business
  • Two or more people will provide a diversity of skills and talent

 

Cons

  • Emotional ties might affect business relationship and the business itself
  • You may have to deal with each other’s differences and it might not work for your business
  • Shared profit
  • Decision making may lead to conflicts if your ideas and beliefs are different

You will need to wait for what your partner have to say before you go with a decision and you might not always feel comfortable with that