Are you looking to fill your entrepreneur spirit by starting a new business? Or looking for alternatives, because you’re unhappy with the current business venture? Although there are benefits to having business partners, sometimes, it’s better just to go at it alone. Deciding to go into a business with a partner or alone is one of the most fundamental decisions. Whether you are looking to start a new business or are looking to expand an existing business.
Having a partner is great when you want to go on vacation or take off sick, but when it comes to finances and maintaining stable relationships, things can get a little dicey. At the end of the day, entrepreneurship might be the right decision for you. Here are three things to consider before going solo in your next business venture.
Entrepreneurs Call the Shots
As an entrepreneur, you and only you call the shots. There is no negotiating with someone else on internal business matters. You decide what the customer base is, what customers you want to attract, when and where to work, as well as, who and how many people to hire. The list goes on.
The drawback is that sometimes two heads are better than one. You may be missing out on another viewpoint or some constructive comments that could make the way you do things better. You could also be missing out on expansion opportunities. However, with another person involved, you’d also have to come to a consensus on the final decision, which isn’t always easy. You can ease this burden in a partnership by splitting business responsibilities, but depending on the personalities and ideas involved, serious disagreements can still arise.
No Financial Marriage
When you enter a partnership, you’re essentially entering into a business marriage. When it comes to business, your finances are your partner’s finances, in the eyes of the law. You will be open and manage bank accounts together, as well as, file a tax return together. You may also have to jointly borrow money and guaranty loans for the business. Although financial decisions and management do not always cause serious rifts in partnerships, they often do. Not to mention, if one partner makes a bad financial decision for the business, it will affect both partners.
As an entrepreneur, your financial decisions, successes, and mistakes are the business’. You are not responsible for discussing financial decisions with other parties, nor are you responsible for someone else’s business decisions. You will have full control of accounts, business expenses, business financing and other financial matters. In turn, this also means the financial responsibilities for the business will rest on your shoulders. Which is not ideal for all.
Not for Everyone
Of course, running a business solo may not be for everyone. For some, running a business with 1 or more partners is ideal. The benefits could very well outweigh the negatives. For others, going it solo is much more attractive. Regardless of which end of the spectrum you fall, our attorneys at Dodson Legal Group can help. Whether it’s setting up your solo business, partnership, or even providing other legal services during the life of your business. To speak more with an attorney about your business needs, give Dodson Legal Group a call at 844-4DODSON for more information. Or schedule your FREE 1 hour video consultation here.