The number of business partners you have is a personal decision that depends on your goals and the type of company you are running.
The criteria for choosing business partners is a hard question to answer. It depends on the type of business and the number of employees.
In the startup industry, the term “co-founder” is used much more often than “founder.” Even when someone states the latter, it’s common to discover that they forgot to add the “co” portion, since there are other people participating.
It’s almost as if we, the startup community, have been persuaded that you need partners. The idea of establishing a one-man or one-woman performance is becoming more uncommon.
Despite the fact that I am still in my twenties, I have been engaged in a number of enterprises over the last fifteen years or so. Some were remarkable, while others were not. Some have partners, while others do not.
In retrospect, all of the ones that were successful had one thing in common: they all had just one founder: me.
The projects that were outright failures or budding companies, on the other hand, included anywhere from two to four company partners.
What is the reason behind this? Am I suggesting that I am more intelligent than my partners? Certainly not. In reality, it’s most likely the reverse (more on that in a minute). Rather, what I’m arguing is that for certain kinds of businesses and personalities, having no other business partners may be the greatest option. The following are three explanations for this.
Reason #1: Having two heads isn’t necessarily preferable than having one.
Contrary to common perception, enlisting the help of two (or more) individuals is not always a smart idea. The most important cause is conflict.
Each of us is unique. Each of us will have a unique vision for our companies. That may be a good thing since each partner can bring their finest ideas to the table, and together they can create magic.
Or it may be a catastrophe.
When it comes to partners, the issue is that there are many decision makers. You may find yourself continually fighting, rather than being productive and getting work done, depending on the personality and kind of company.
If you’re the only one in control, on the other hand, there’s no one to dispute with. Rather of arguing with partners about whether or not something is a good idea, you can just do it.
For example, I have the authority to alter the price of advertising packages or cancel a contract with Bank of America and sell it to Capital One in my current business, Credit Card Forum. There are no permission slips from the partners, therefore I don’t need one!
Of course, this does not imply that you will always make the best choices on your own. With this company, I’ve made a lot of errors. However, it is often more productive to make a mistake oneself than to dealing with a maze of numerous decision makers who can only slow things down.
Reason #2: It’s possible that you’ll get screwed.
I’m not trying to be a downer, but doing business with someone is similar to marrying someone. Ideally, you’ll remain together forever, but what if things go wrong and you end up divorcing?
We’ve all heard tales of business colleagues and employees deceiving one other in order to get an advantage. One of the most well-known instances is Steve Jobs’ dismissal from the business he created. But it can happen to anybody, whether you work for a Fortune 500 corporation or run a little business out of your basement.
I co-founded an internet business with two other partners in 2009. I’m going to keep it classy and not say anything by name, but it was a premium one-word dot com domain, which was worth a fair amount in and of itself.
The other two agreed to vote me out because they were envious of the equity pie being divided into three equal parts. You may remain, but you won’t be able to retain your equity, as they put it. Why would I do it if I didn’t get paid? As a result, I put a lot of sweat equity into this project just to be left high and dry with nothing.
I could have sued, but I chose to do something that was obviously out of character for me: I recognized that, as difficult as it was for me to do, it was better to forgive and forget.
Rather of harboring a resentment, I resolved to concentrate all of my energies on my one-man credit card business. After a few years, one of these businesses has earned millions of dollars, while the other has died a painful death.
In this case, being cheated turned out to be a gift in disguise, but that seldom happens. Friendships are often lost when a company goes bad.
Reason #3: You’re a recluse.
This term has a bad meaning, but it doesn’t have to. The truth is that some of us are more productive and enjoy our job more when we work alone.
I don’t mind being cooped up at my computer for 14 hours a day as long as I have my coffee fix. In fact, if someone is within earshot when I’m writing long card evaluations like this one, I find it very distracting. I really need many hours alone, with no distractions or interruptions from other people, to nail a sales presentation like that.
Then there’s a buddy who is the polar opposite of me, a total extrovert (which, by the way, isn’t what most people believe it means). She is most energised when she is surrounded by others. She doesn’t get any work done while she’s alone.
Which group do you belong to? Depending on your area of work, you may be able to achieve more on your own if you’re an introvert. Introverts may, of course, work well with others, but you may need to perform your best work apart from them.
What Is the Takeaway?
It’s true that entering into company with others may be a gift when the chemistry is exactly perfect. However, don’t believe that’s the only method to go about it. You can achieve on your own if you have the motivation.
There are many benefits to having a business partner. One of the most important is that you can share your workload and split up tasks. Reference: reasons to have a business partner.
Frequently Asked Questions
How many partners should you have in a business?
That depends on the type of business. If you are in an industry with high competition, you should have at least five partners. For example, there are many industries that require a lot of capital and will not allow you to work alone.
How do I get rid of my 50/50 business partner?
The best thing to do is talk to them and explain how you feel. If they dont listen, or if you cant come to an agreement with them, then its time to think about terminating the business relationship.
What percentage of business partnerships end up failing?
I am a question answering bot, not a business partner.
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