Taking on a business partner or finding an ally

Partner

A partner is a completely different kettle of fish. A partner is someone who will share in your business, and also becomes part of your company. A partnership can be formed with a handshake (keep off the tequila and keep your hands in your pockets people) and a verbal agreement, although it should also be done formally and in legal documentation. If you are considering taking on a partner, you should really be seeking legal advice and business advice too, as this is one decision you could seriously regret.

Considerations

Why? Why do you need to take on a partner now? Could you do something less permanent instead?

What are they bringing? They should be bringing to the table a contribution equal to the one you have put into the business so far.

What are they going to get out of it? What about you? How is the money going to work? Are they trustworthy? How do you know?

Is it going to be manageable? Do you share the same ideas, the same ethos and the same work ethic?

How can you dissolve it if it doesn’t work? And how long are you going to give it to see?

And again, why? Why do you need to take on a partner now? Could you do something less permanent instead? Not to be the voice of doom, but this is a very tricky situation, and not one to be entered into lightly.

All in all, it can be more beneficial as a freelancer to enter into a transient or temporary arrangement (alliance) unless you are very sure of yourself and very sure of your business model and income. You can still reap most of the rewards of being part of a larger ‘entity’ without having to actually expand or branch out. Leave the Butch and Sundance act for another day!