As a sole owner are you ready to take your small business to the next level but cannot get a loan or afford the added expertise you need to make it happen? Do you need a vacation but cannot leave your business unattended?  Are you working 24/7 and hardly ever see your family? If you have answered yes to these questions, this may be a good time to consider taking on a partner.

When I asked myself those questions, I decided to get a partner to buy into my company – 50/50.  Most folks told me to keep majority ownership.  It was my view that if my partner owned fifty percent of the business, she would have as much vested interested as I did and work just as hard to make it successful. 

Getting a partner to buy into my company added much needed working capital to grow the business.   Other advantages included having someone to collaborate with, share responsibilities and share the financial commitment and the potential to earn greater profits. 

I’m sure you have heard horrific stories about partnerships like when one partner rips off the other leaving the business and the wronged partner without recourse. I can testify to my own partnership disaster. But I can also testify to how well my partnership worked for many years.  In a partnership environment I was able to grow my business, put some money in my pocket from the buy in, spend time with my family and go on vacation without worry.  Our partnership thrived because we each brought a specific strength to the business and took a defined role.  We also shared the same values, work ethics and vision for the business.  The part that got messy was our exit strategy.  We did not have one. 

The most important decision you have to make about taking on a partner is the choice of a partner. Does the person’s personality work with yours?  What expertise does the person bring to the business?  What role will each of you play?  Are they a hard worker?  Do you share similar values and ethics?  Do you share the same vision for the business?

Then consider the partnership agreement and other rules and agreements that will govern the partnership.  Other issues to consider include whether you have the ability and wish to share the responsibility, give up control of the business and whether you can learn to compromise.  Partnerships can be successful when you take the right steps and lay a solid foundation from the beginning.