Five Bad Reasons to Bring a Partner Into Your Business
If you operate a small business, it can be tempting to reach out and have a partner join you on your journey. There are some good reasons and situations where a partner can be beneficial. There are also some bad ones. Here are five bad reasons to bring a partner on board.
- It will make you feel better. It sounds odd, but many people start a business or bring a partner into a business just for support. You can get support from a business organization or family, there’s usually little value in adding a partner just to have someone you can share daily successes or failures with.
- You need financing. If your business is struggling financially, it is best to get to the core of the real problem. Adding a partner to inject cash may only serve to prolong the process. Unless that cash is used to upgrade or fundamentally improve the company, a partner may just bring added baggage and perhaps even stress.
- You need help. If you need additional help at your company, hire someone or get help from a family member. Giving up part ownership of your company and perhaps even decision making power for additional labor is rarely a good idea.
- You need expertise. Sure, having someone with knowledge of bookkeeping or advertising could be helpful, but bringing in a partner to get that expertise could be a mistake. Instead, hire a freelancer or seek advice by joining a local business group.
- You feel you owe it to them. If you have a long-term, valuable employee or family member who has been a part of your company for a long period of time, it may be one thing. But this decision should not be taken lightly. It should only be done in a mature company that is on solid footing and is truly a reward for loyalty and service.
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