Starting your own business is an exciting and completely terrifying time. Deciding to branch out and build from the ground up your dream company can be really rewarding. It can also seem overwhelming.
Among the many things to consider like company name, product, marketing etc. is whether or not to go into a partnership with someone else or keep your company a sole proprietorship. I have done both- depending on the company. Here are some questions to ask yourself when you’re trying to decide.
*Scope of Business
First off, how large do you project or want your business to get? Will you eventually be hiring employees? Sometimes smaller businesses can be ran just fine by a single person. But if your business is gearing towards a large outreach with a significant amount of work right off the bat, opening a business with someone might be ideal. Or you can always partner with another company on larger projects.
*Who’s Idea For The Company?
If you’ve been throwing the idea of the company around for awhile – was it with someone else? Or was it solely your brainchild? If you’ve been talking with someone else about starting up a business, it’s a good idea to talk to them about it when you’re ready to move forward. You don’t want any sticky situations later with hurt feelings or lawsuits.
*Friend or Acquaintance?
Is the person you’re looking at partnering with a good friend? An acquaintance? Sometimes it can be difficult if there are some really heightened emotions associated with your partner and can be difficult to separate from business. If you lay out boundaries and expectations beforehand it can be helpful and not ruin a lifetime friendship.
*Compatible Work Ethics?
Along the same lines of outlining expectations, you need to be on the same page with work ethics. What is the goal of the company? What are you both willing to sacrifice? How will you achieve those goals? Are you money motivated or cause motivated? Nothing is worse than starting a company with someone only to find out you work completely different and develop a mistrust for each other.
*Different Strengths That Compliment Each Other?
It can be great beneficial if you both have different strengths. Maybe one of you loves paperwork and spreadsheets while the other loves public speaking and events. If you both are good at the same things and not so good at the same things, it can be hard to get everything done.
*Are There Spouses Who Will Also Be Involved?
Depending on where you live, you might have to list your spouse on the registration. If your partners spouse will own half of their share of the company, you should know if they will want to be involved in decision making. And again set guidelines about this. I’ve seen several companies dissolve due to conflicts with the partners spouses.
Lisa Coronado is a content writer for CoolBlueWeb.