Here's What You Need to Consider Before Taking on a Business Partner Do you really need a business partner? Here are a few things to consider.

By Jessica Dennehy

entrepreneur daily

Opinions expressed by Entrepreneur contributors are their own.

As an entrepreneur, you take a big risk by starting your own business. The vision, capital, decisions and responsibilities rest on your shoulders. There comes a time when you may consider taking on a partner. Whether it's early on or after you're established and ready to take your brand to the next level, making the decision about a partnership is not to be taken lightly. When it comes to choosing a partner, choose wisely.

Marriage, divorce and running a business with someone else have a lot of similarities. In the beginning, things are exciting! You spend all your time together enjoying your similarities and making big plans. As your relationship routine develops, you begin to think and talk alike — even finish each other's sentences. But when the honeymoon phase is over and challenges begin to surface, some relationships weather the storm, and others sink like the Titanic.

Similar to a messy divorce, you cannot get out of a business partnership without extreme difficulty. It takes a long time to go through all the legal stuff to form the partnership properly, but it can take even longer and be more challenging to separate, so it's important to be very strategic from the beginning.

Of course, having a good contract in place is an absolute necessity. Even then, you may be facing an uphill battle. If your partner doesn't agree to dissolve, disapproves of the terms you set or simply wants to make your life hard, they can make everything difficult for you — even if you have a right of first refusal. You may even be required to have your company assessed by an independent party. It's an energy and time-sucker for sure.

So, before you hop in the proverbial business bed with someone, make sure it's for the right reasons!

Related: The Top 9 Reasons Why Business Partnerships Fail

Do you really need a business partner?

Many of you will take on a partner for the wrong reason: fear. You are afraid to stand on your own because then all the decisions start and end with you. There is no one else to blame if you fail, and to many of you, that is the scariest scenario. You may feel more comfortable knowing that the decisions made are not completely on your shoulders and therefore, you don't have to take full ownership if things go south.

But the truth is: When you have full control of the brand trajectory, you are more likely to succeed. Most of you CAN and SHOULD do it on your own, especially a startup. In the same way that your personal happiness is derived from within, the success of your business is within your power. Stop looking for resolutions from outside sources, and trust that you can find the answers by following your own intuition. You don't need to know everything; you just need to stop second-guessing yourself and trust your instincts! Remember, you achieved amazing things to get you to where you are now, and you can achieve even more greatness to catapult you forward and accomplish your big goals.

Related: 5 Questions to Decide If You Need a Business Partner

What to consider before committing to a business partnership

Of course, there are many scenarios where a partnership is an ideal situation. It just has to be an option you consider carefully and intentionally. A partner must bring as much to the table as you do. There must be an equal energy output. Just like in any healthy relationship, this energy will ebb and flow. Sometimes you'll be doing more, and other times, your partner will be doing more. That's natural. However, one person should not always be carrying the burden. The value you each bring to the business needs to be the same.

It's important to examine your strengths. If you both bring similar qualities, then you are simply duplicating efforts. Think about how the other person's qualities complement yours. Make sure they bring strengths and knowledge to the table that you don't. If your zone of genius lies in being a visionary leader, you need someone to bring your vision to life. Partnering is a wise choice if doing the groundwork isn't one of your strengths, or if there is so much groundwork to do that it takes you away from accomplishing the visionary work.

When I opened my first business, Mad Men Barbershop, my partner (and then-husband) was the visionary; I was the financier and eventually the integrator. In business, we complemented one another well. Each of us leaned into our natural strengths and unique thought processes to achieve the success we have today. Of course, we've had our share of disagreements and adversity. But we knew we needed to overcome the challenges as a united front or risk having everything fall apart.

Related: 10 Questions to Ask Before Committing to a Business Partner

Trust yourself

It will take a unique person to understand your mission and work on the business equally as a team. You need to ensure you are in alignment with this person and that both of you are committed to overcoming the inevitable difficulties that will arise. Weigh the pros and cons, and you may find that you would be better served by hiring the right staff who can help you rocket to the next level, rather than committing half of your company — your dream — to a partner.

Trust yourself to know if it's time to pivot in your business and take on a partner or have the courage to keep slaying it on your own. It's an easy decision to make when you're operating with purpose and intent, rather than self-doubt and fear. You've already made the biggest, scariest decision in business — getting started! Keep the momentum going. The right choice lies within you.

Jessica Dennehy

Entrepreneur Leadership Network® Contributor

CEO of Pivot & Slay

Jessica is a 2x best-selling author, speaker, entrepreneur & former Wall Street attorney. Through her coaching company, Pivot & Slay, she empowers entrepreneurs to embrace their CEO Power, exit their comfort zones and start taking the risks necessary for success.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Related Topics

Science & Technology

Save Nearly $400 on This 13-Course Excel, VBA, and Data Science Bundle

Pick up this e-learning bundle for $35, this week only.

Growing a Business

How to Regain Your Passion for Your Business — And How to Keep It Alive

Is your passion fading? Here's how to create a business model centered around keeping your passion alive and well.

Science & Technology

4 Reasons Why Your Customer Service Is About to Get a Whole Lot Better in 2024

As the technology powering AI customer support jumps to the next level, the quality of service will greatly improve.

Management

The 4 Pros and Cons of Being a Part-Time CEO

The idea of a part-time CEO is gaining traction. But before you make the switch, here are some pros and cons to consider.

Business News

Want to Start a Billion-Dollar Business? Look to These Two Industries, Which Have the Most Unicorn Growth

During a tough fundraising year overall last year, the value of cybersecurity and AI unicorns saw double-digit growth.

Business News

'I Want a Free Month': Thousands of Customers Furious at AT&T After Widespread Outages

The carrier has not yet disclosed the root cause of the issue.