I do not think I would ever enter a partnership with anyone. If I was going to, it could not be a close friend, as sometimes even if your ideologies are very similar a time will come when you disagree with each other; I would not want to lose a friendship over money or stress from the business. It would be important for me to trust them, for them to be professional and knowledgeable, and ready to make the hard decisions when needed. I would want someone that was good under pressure/stress as there are bound to be highs and lows when running a business. I would prefer to join a company where if it goes under or something happens no one could come for me and my assets only my business. This is because if your partner does something wrong, they can come for you and your wealth. I do not think the gain from that would be worth the risk in my life. Would you prefer a partnership to an LLC or another type of company instead of a partnership?
Having lower financial pressure and greater control of the business is the benefit of the partnership. And the feeling of working with a partner with the same target and passion is also excellent. However, a person can't become another person. People will never know what the other is thinking. And it's difficult to say which side is correct when a disagreement happens because no one can predict the future. Everyone might be a blind person in the partnership sometime. Therefore, I prefer to have a partner who can tolerate mistakes and is available to be a conciliator between members when a loss happens if I am going to find partners.
If I ever wanted to start a business, I feel like I wouldn't want to do a partnership. If I am thinking about the future, I would want to create a business so that my family could prosper from it if they were to take over. Since a partnership ends if you or your partner dies, I feel like it isn't truly beneficial in the long run unless the business is successful and your ideals are similar. If I were to enter a partnership, I would want someone that has similar ideals to me. I would want to do something that would benefit society. Qualities I would want in a partner would be that they should be ambitious, willing to compromise, knowledgeable in topics related to the business, committed, and hard-working. I feel like there should be a very high standard when finding a partner and you shouldn't work with someone just because you know them. It is very difficult finding the perfect person and there will be some compromise but they should have at least 90% of the qualities that you are looking for.
The two biggest aspects that must exist between the two partners are trust and communication. Having someone who you are always able to talk to, especially outside of working hours, is going to be crucial when starting up a new partnership. It is no small task to be able to do this so make sure that you and your partner are able to talk things out without putting each other down, trust each other that you are making the right decisions, and have a good work ethic to get past all the complications are necessary steps to take in order to have a chance to create a successful partnership. In the future, I would only consider doing a partnership if I find someone who meets those standards and has the same vision as I do. I will not be actively looking for a partner because then I could get desperate and settle for someone less than I would want if the search takes too long. I have a very clear visual in my head of what the ideal business partner would be for me and making sure those requirements are met is what it would take for me to start my own partnership.
In my personal opinion, partnerships and sole proprietorship are very similar but with lower risk when investing due to the split of initial costs for partnerships. Partnership sounds amazing for whenever two people share the same objectives and are willing to work hard in order to achieve it. Even though you run less risk from a financial point of view, there is still a lot of risk when choosing the correct partner. Would you consider doing a partnership in the future? If so, what characteristics would you prefer for your partner?
A partnership is an excellent idea for someone trying to move the company forward. I believe your partner should not have the same thoughts as you and always agree with you because there will be no change in the decision-making. If you had a partner questioning your ideas, it would allow you to think more about your vision and see if you are making the correct approach. From the financial viewpoint, it may not make sense to split half or close to half the money with a partner at the beginning, but it can be a great idea in the long run since you are widening your viewpoint and opening up to other ideas.
I personally think partnerships would only be affective if the parties involved have a better understanding not only of each others goals, but also their work habits, ethics, and ideologies. Partnerships definitely work better when there is a synergy between partners. Both partners definitely need to be "in it to win it". If one side is lacking, then the partnership will fail.
Personally, I would prefer to steer clear of partnerships. While partnerships seem to have a smaller financial risk, finding the "right" partner is essential to the process. The choice in partners may be the tell-all in whether the business will succeed or not. By choosing the wrong partner, this may lead to major setbacks and sacrifices that would not occur in a sole proprietorship. While partnerships are mainly beneficial from a financial standpoint, the risk is higher when considering another persons business decisions that could effect your own outcomes.
I would consider doing a partnership in the future, mainly for the financial benefits but partly because I feel as though it is easier to bring a dream to life with help. The most important characteristic that I would want in my partner is honesty because I need to believe what they say in order to develop and maintain the trust necessary for a substantial partnership. I would also like a potential partner to possess creative because that will be useful in the constantly changing market for us to stay on top.
Sole proprietorship has higher risk than a partnership, but it also allows for complete control. Complete control of a company negates the formation of a board members and input on decisions for the company by board members or partners. Complete control of the company also means that the owner is solely liable for the companies success or failure. A partnership is beneficial in terms of oversight and liability. The right partner is key as they can have a negative impact on the business despite being a partnership. I think a business can be developed via a partnership or sole proprietorship.
A partnership has several positive characteristics, especially when there is a unified goal, mission, and method of completing tasks. Additionally, there could be less financial risk and burden. However, as in any partnership in life, each partner needs to be able to sacrifice for the common good. For example, in any marriage or friendship, each party needs to be unified, have common interests, and be able to sacrifice their ego for the sake of the betterment of the relationship. The same goes for partnerships. There cannot be a member stuck in an ideology that is not working, or persistent in an idea that is not accepted by the other party, just for the sake of satisfying themselves. There needs to be clear and open communication about what is best for the company. Additionally, the benefit of a partner versus an investor is that the partner is more likely to be involved, passionate, and "get their hands dirty" in making the business work. A partner that is not zealous about the business is probably not the best partner. A partnership is not made because there are two people that have money and are "bored". Rather, it is an investment in themselves and their belief about the usability of a product.
I can definitely understand the risks of going with a partner, but I do believe that would be the better path if you would want to potentially grow the business bigger. Even though ideologies can differ, I find that you could change that from being a negative to being a positive. You try to show ideas to each other and come up with a middle ground. I find that it could also help progress the company for the better in the future. In my opinion, I would mainly find a partner that is open minded and agreeable with majority of things but can also hold their opinion too.
