Building a company alone can be daunting when you consider the funding needed, work and general effort required to get a business off the ground.
Many entrepreneurs sit there thinking “hmm I’d probably get there quicker with a business partner”
That may well be true but before you decide on working with a partner, and in the interests of balance let me give you a few downsides…!
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You will probably argue
Yep, you won’t agree on everything, no matter how well you get on together now. Especially when things are challenging and there’s a lot of emotion involved, things can get very heated.
Someone won’t always pull their weight
As much as you think they are hard-working, there’s usually one who puts more effort in than the other. That is fine if both are happy and almost ‘take turns’ to be the driving force. But if one is persistently sitting back and enjoying the efforts on the other, that will end in tears.
You have to split the profits
Sounds obvious right?! In the early days of a business, often it’s nice to be able to draw a salary and keep your bills paid while you grow things.
If you are splitting that profit, there’s a possibility that day will get even longer to get to. Is that feasible for you?
You need to trust them 100%
Absolute trust is paramount, you’ll be working with them for a long time, working hard for a potential future payoff. You just won’t be fully committed to the journey if you can’t trust them.
Anyway… enough of the downsides. If Google, Microsoft and Rolls Royce can do it, so can you!
Benefits of a co-founder include:
- Accountability
- Decision burden halved
- Workload halved
- Pressure shared
- Fresh ideas
- Different perspectives
- Support
- Fun
Get the right partner and the journey can be way more fun, way more exciting and a lot easier!
So if you’ve now decided that having a business partner is the right thing to do, where on earth can you find one?
Friends and family
I’d say this is the most popular. Many people start businesses with friends or family. Why? God knows! kidding…!
On a serious note…the trust is already there, they usually know each other’s personalities well and maybe have worked on other projects before.
Investors
Many times investors can become business partners. You bring a set of specific skills to the table and they bring money and perhaps a complementary skill set.
Often investors in companies have extensive experience and contacts in the industry. (that’s why most invest in what they know)
Co-working spaces
Startups and founders often use co-working spaces to work from. A low monthly fee for access to a shared office environment.
These can be great places to meet fellow business owners and potentially join forces with one big business idea.
Networking events
Websites like meetup.com, BNI and other business events can be a good way to meet up with fellow entrepreneurs. You might be there to do business and network but if you go open-minded you could find someone perfectly suited to be a business partner.
Online forums/groups
Often overlooked, online forums bring together like-minded people around a specific topic. This can result in online friendships being formed and possible business partnerships.
One of our clients was a member of a marketing group, he reached out looking for help with cold calling. Ultimately he went into partnership with a phone sales expert who sold the service whilst he fulfilled it.
(TIP: Find a business partner that has skills you don’t and vice versa)
It’s also worth noting (on a boring note) that sorting out shareholder agreements and other legal implications is super important. Get that done ASAP so you can focus on building your company. Talk to us if you need any help 🙂