There are a variety of pros and cons to having a business partner in any business. If you are considering having a partner in your business, there are quite a few things that you should consider before you start seeking someone to be by your side.

Having a successful business takes a great deal of work and effort on your part. It can be a very stressful situation, no matter what type of business you have. Some business owners say that having a company partner can help take the load off of the other person, while others say that it can be a nuisance and a dangerous risk. In order to determine if a business partner is right for you, consider the following pros and cons that you can use to evaluate the situation.

Advantages of a Business Partner:

Less Responsibility

While owning a business has its fair share of responsibilities, if you have a partner, it will lessen the load on you somewhat. However, you should still maintain your side of the business arrangement and do not put it all off on the other person. Either way, if you have your own business and you do not have a partner, then you will have less days off. By having a partner, you can take sick days and personal days without feeling the pressure to be there all of the time.

Financial Benefits

If you are trying to start your own business, it can be difficult to deal with all of the financial aspects that are included. You have to worry with the start up costs, the maintenance, and any other costs that are included all on your own. This is one of the main reasons that so many individual business owners give up, since they run out of funds to make the business grow.

By having a business partner, you can share the financial details with another person, which will lessen the amount of money that you have to spend out of pocket.

New Outlook

Instead of bringing your own ideas to the table all the time, a partner will also have certain knowledge and skills that you might not have. This will benefit the business because the both of you can utilize what you know in order to make the business grow. The give and take of the relationship is what makes business partnerships so successful.

Disadvantages of a Business Partner:

Differences of Priorities

Each person handles situations differently and this will cause both parties to have various issues. Some people have a more intense outlook on the details of the business, while the other person might be more level headed. Either way, each of you will have your own influence on the business and it is up to how each person handles the other person’s personality that determines if the relationship will work.

Inability to Make Financial Decisions Together

As the business grows, there will be various financial decisions that will need to be made. It is very rare for an agreement to occur between both parties when there are issues dealing with money. Often, a third party has to be brought in to help resolve the issues. It is best if both people make a finalized agreement prior to starting their business arrangement to avoid having any financial misunderstandings.

Reduction of Authority

As the business grows, the business partner who agreed to be apart of the business later will find that their place has diminished slightly. This occurs as the CEO or founder takes on a higher status. This leads to harsh feelings and other problems. Once again, a formal business agreement in writing is the best way to avoid this.

Both people should be aware what will happen as the business grows. If it is a complete equal partnership, then it should be known so that the other person cannot try to take over.

To avoid any pitfalls that might occur with a business partner, have a trial period prior to making the partnership final. You can start a project or two together, and if you work well together then you should feel more confident that the relationship will last.

There are always pros and cons with every business situation, and having a business partner is no different. Evaluate the advantages and disadvantages and decide for yourself if it is worth the risk or if you really need a partner.