- Pros: Pride of ownership, freedom from others control, time invested will show higher return, flexibility to make decisions.
- Cons: You never know when you can invest 40 hours or 80 hours into the business this week. Having to compete with other companies. No guarantee of success.
If partnering just for capital, an entrepreneur may think twice. Partnering mistakes are costly because a partner may not have any expertise for the business or not willing to invest the same amount of time.
When it comes to partnering, a lot of people immediately think about 50/50, so everyone can have equal control. You need to avoid this because “there are too many cooks in the kitchen.” There needs to be a person who can make the last decision. Research shows it is best to go into a partnership of 60/40 or 70/30. Every business needs a person who has an overall control and accountability. This way employees will not be confused in knowing who the boss is.
- Pros: different and more diverse characters may benefit in various tasks such as finance, people, product, marketing management, etc.
- Cons: Facing the same issues but two people may react in different ways.
- Pros: It is best if having a partner who has the same vision, passion, and goal as yours.
- Cons: Partners many times see the same product going in two different directions.
A mix of generations
- Older partner: Lifetime experiences, knowledge, and more flexible work hours but not much energy and might be considering retirement soon.
- Younger partner: They are savvy with new technologies and full of energy. Eager to work but lack of real-world job experiences or some specific skills needed. Less flexible work hours or not fully committed to the job.
Think long and hard before you invite a partner into your dream!